Lessons of the day.

So yeah, there was that trendline, but let’s not start with that.

What happened here?

When large quantities are needed, they must buy on separate occasions: not to move price too far too fast, as that would be detrimental to the average cost, but also due to low liquidity: there aren’t enough contracts on offer.

So they wait for the price to fall back, they are keep on buying at market, but even that isn’t reaching the volume they had in mind. So they are going after all the pending break out orders and stop losses below the last swing low. The retail’s stop losses are gonna be within 15 pips likely.

This is not stop hunting, but a last resort of desperation to accumulate enough longs that they would get to hand back out on the way to 1.0720.

Now you can kind of picture how a lot of the 5th waves are made and why do they get 16 pips further than the last wave.

This deserves a Chuck Testa.

Perhaps even a Terra Cresta.