Very clear explanation, grateful.
could you please post EURAUD daily chart with stops? I would be very interested to see how fast the accumulation of the stops grows above that prominent daily pin specifically designed before the weekend so that as many traders could see it as possible? And also what distance above the high these stops will mostly be positioned. My guess is 10-20 pips above. I am not sure if your tools allow to see how many lots in stops are actually being accumulated there – I don’t know what options you have for that. They for sure have a summary of all positions before making a decision of what the next move would be. Maybe we have to judge it by the length of the line representing stops on your chart?
I am hoping they won’t break that pin right away, I would expect them to play around and move lower without breaking the top to attract more shorts first. If you do that, can you please post a daily chart, say, once a day to see how many stops are being accumulated there before the break of that top? I always wanted to have a sneak peek into their kitchen and this might be a really good chance to do that, I think.
Myfxbook currently shows 61% sellers. The market opens in a couple of hours.
I would open a separate thread for that EURAUD stop exercise but I cannot figure out how to do it here, on SME.
I hereby post the EURAUD charts:
EURAUD is in a “low bias” mode, rather slightly bearish………………….
Note that most likely, the “myfxbook” long/short ratio does not show you the actual DM.
EA is now at 1.5860
thank you. So that is about where the accumulation of stops is now? Looks like about 15-16 pips above the top, around 1.5962 judging by the picture you posted. I would expect it to grow much larger by the time they will be breaking it so they have to create some drama now by moving the price up and down. Is the green line at about 1.5962 the stops or the buy stop orders of breakout traders?
Strange, your data does not show any sellers. it is not possible in this situation, many traders would react to that pin. That is why it was left for the weekend for all to see, in my opinion. That top is a magnet but I don’t see anything accumulated there so far, at least in the data that you have.
it is better to identify the actual DM (obviously the SME FX data is far superior to anything out there), rather than trying to predict what DM does next.
Trade what you see, not what you think.
11/02/2021 Market Overview: