It’s us versus them, in that they make money from spreads and so it’s their objective to stop people out as much as possible.
This got me thinking…what exactly do brokers see on their screen?
I reckon their software collates all their clients trades in a nice and easy visual representation of peoples stop losses, in the form of cluster dots. The bigger the dot(s), the more people have placed their SL around that price.
img836.imageshack.us/img836/5604/cluster.png (can’t insert a picture because i don’t have 50,000 posts )
From this, it is then easy for them to ‘gun for people’s stops’. Once the take out has happened, price reverses with force and resumes in the direction most traders originally placed their trade…grrr.
Can anyone offer any inside info on how data is presented to brokers, so we can better understand their game?
Thanks in advance.