Well it is true that people move the market past certain marks because they know the stops are there.
For example, a former CME spoo trader once told me that the pit knows exactly where the Fib retraces are, and if I wanted to pick that area for a stop or an entry I should keep my point just past the Fib point. His name, for reference, is George Angel. He sells seminars and so on where he suggests people do exactly that, fade the Technical Traders.
Nothing new under the sun, so to speak.
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<a hard-edge, deep-set, affirmation about you TA belief system .... >
Just to establish where I am, the last thing anyone could accuse me of is being a TA trader, I just pick these points for analysis because I know TA people do. I prefer to try to infer where program trading may occur. For that, Technical Analysis is of only ancillary use.
I plan my trades out before the market Opens. I know where/when I am of a mind to Buy and similarly where I intend to Sell. Adversarial program trading is a peril of doing business. There is always someone out there ready to eat your lunch, whether s/he is offshore or next store. |
