Stop Hit Pattern | Live Forex Trade | AUDCAD | Daily Chart

By | March 6, 2016

See the attached Video –  This video was originally uploaded in July of 2014.  Nice bearish spike takes out the recent bounce high. This trade shows how important it is that you understand support and resistance from the viewpoint of an area where stop loss orders are sitting. When the market pushed upward then fell off I used the new high to mark resistance because this is an area where traders are going to put their stop loss orders. As the price begins to fall from this level traders begin to take shorts with their stop loss orders above the new bounce high, this is now the level I watched for action. The market pushed back to this level and formed a bearish spike taking out all the stop loss orders before falling off.

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