If you are always wondering why your stop loss is hit and than the market reverse in the direction you actually predicted but without you, this might could help explain.
You must know who is operating the market and how they work.
The banks can’t open simply buy position as us by one. Click they must accumulate the Millions of $$ to move the market and they use the liquidity provided by other traders who brings the money to the markets.
Don’t believe the myth that as more times the price bounce on the support that the support is stronger. True is that as many time it bounce, more Stop loses = $$$ is below, so even more it works like a magnet for the banks. where they like to fill their orders.
Look on the example below CADCHF trade Idea I posted this week.
Price was bouncing on the support, Once I spotted the stop hunt and break of the trend. I set the buy stop.
Remembers once the stop hunt happen it means that the banks has loaded liquidity and you can expect explosive move soon to happen.
While I was writing this nice stop hunt happened on the GBPUSD
Look how was the price maintained on the fake support than on the Frankfurt open price dropped down to the liquidity = stop losses and now its quickly moving up. We will possibly see move up from here.
And strong uptrend developed from this move