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Old 04-06-2007, 04:48 PM
Junior Member
 

Join Date: Dec 2006
Location: NY
Posts: 57
Default Stop Hunting

There has been a lot of questions about stop hunting, and what exactly it is.

In general, the larger players/hedgefunds/brokers look to push the price past a certain threshold where there are presumably a cluster of stops-loss orders, with the idea that once these orders are triggered...the price will continue to go in that direction, at least in the short term, creating large profits very quickly. Here is a link to an article that explains stop hunting at much more length, and also a strategy for profiting from stop hunting.

Stop Hunting With The Big Players
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