Reading The Right Side of The Chart : EURUSD
Just imagine every turning point of a trend or a continuation of a trend, a fractal if you like, lies underneath or above it clusters of stop losses that the institutional traders look for to get liquidity. It sounds that it's evil, but whether we hate it or despise it, that is how the market works: you want to buy, you need someone willing to sell and vice versa. Putting buy stops and sell stops (in a form of stoploss or pending order) is another way of saying "I am willing to sell my position here".
On Mondays, particularly before the London open, the Sydney/Asian bank traders would seek liquidity in order to get their orders filled. Since market volume generally very thin, hence stop hunting reign supreme at this time so they could get the liquidity needed to get their orders in.
Actionable :
Using my Friday/Monday relationship concept (I call it Phase 2, don't ask why), I would wait if the price breaks and close Friday low (the deeper the better, preferably at 1.1000 - 1.0900) and then I will look for a bullish signal. And Vice versa.
On Mondays, particularly before the London open, the Sydney/Asian bank traders would seek liquidity in order to get their orders filled. Since market volume generally very thin, hence stop hunting reign supreme at this time so they could get the liquidity needed to get their orders in.
Actionable :
Using my Friday/Monday relationship concept (I call it Phase 2, don't ask why), I would wait if the price breaks and close Friday low (the deeper the better, preferably at 1.1000 - 1.0900) and then I will look for a bullish signal. And Vice versa.
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