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Detail

PL_fxStopHunt

The Pricelines fromt the function "PL_fxStopHunt" are based on the analysis of pricemovements from the previous week on a higher timeframe (hourly chart).
They highlight areas where larger buy and sell orders are maybe placed to hedge existing positions.

These areas are interesting for large market participants for stop-hunting.

• green lines mark areas where potentially BUY-Orders are placed.
  eg, for hedding SHORT-Positions - they generate demand and lead (in the short term) to higher prices
• red lines mark areas where potentially SELL-Orders are placed
  eg, for hedding LONG positionen - they generate supply and lead (in the short term) to lower prices

Additional order volume could come at these price levels from traders who use Breakout-Strategies.

Special Features

• when changing the instrument in the chart, the lines are automatically adapted
• with one keystroke you can hide or show the lines
• the lines are automatically activated or deactivated in higher timeframes

Data Maintenance

The maintance of the required data is done by us manually.
This is expensive, but the high relevance of the lines and thus the benefits for trading can only be achieved this way.

Usage

The PL_fxStopHunt price lines can be used as part of a trading plan as follows:

• as Take-Profit areas for open positions
• as Entry-Levels for Swing-Trades or Intraday-Trades

Availability

The function "PL_fxStopHunt" is part of the TT4Y_fxLevelLines, that are offered as a subscription (based on tools and dataservice).

Image

An example:

• EURUSD 15 min

Gallery

More Examples:

• with different instruments and differnet chart settings

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Stop-Hunting

Stop-Hunting

is:

• a typical market behavior in forex trading
• a legal form of trading
• the art to urge weak market participants out of the market

Areas where stops are placed are Key-Levels.

Often traders use "round numbers" for stops.

The range +/- 15 pips of a 100-level (30-pip-range) is referred to as "trade zone".
Comparable to the 20-yard line in football, there is a high probability that the 100-level is reached, when the price touched the "trade zone".

For the visualization of these price levels, we provide a separate function: PL_RULE100.

In contrast the PL_fxStopHunt price levels are based on the analysis of price movements on the higher timeframe (hourly chart) from the previous week and targeting to the larger price movements based on the same principles.
The PL_fxStopHunt lines are especially helpful at the beginning ot the week. They show, that you should expect counter-movements, so that "weak hands" are shaken off bevor increased price movements.

Stop-Hunting of large market participants is one of the simplest and most effective forex setups that are available for short-term traders !