Ok, trading the big numbers, shame I weren’t trading today.
I’ve tried to put it all in the image, dots are MS, blue lines illustrate the general trend, I’ve coloured in the daily chart (using GIMP, I’m too poor to afford Photoshop :D) , and I’ve done it on Oanda chart, that’s just an indicator free thing.
So the entry, pinbar rejection back up just after the initial, still a tight stop to the previous short term high, last red dot MS, didn’t make to the 80 level and MS has turned bearish, bounces off the 20, doesn’t make it to 50, market structure has become nice and bearish, Big candles, small wicks stay in the trade, and back to the 2900 level which has been a real favourite over the last few weeks.
Oh, and this stop hunting thing, it’s poor term, but I still like it, and this is by no means a detailed description and it’s never just one trade, but look at it from this point of view, if we’re going from a big number to a big number, like in this instance from 3100 to 2900, so you’ve got BAE systems with an order of 5000 planes they want to buy, so they’re trading @ 3000 say, that transaction needs to be filled, it will never get filled like we do at the 3000 level, it might get filled from 2900 to 3100, that’s the range that it will get filled at, so on it’s way down to the 3000 level, orders will be matched at the 3100 range, which is 3120 to 3080, price on it’s way down, past the 80 level, tries to get back up to the 80, but what happens then, no more orders can be paired so down it goes, and 'mind the gap on the way down .