Using the order book - Stop hunting explained
Using the order book. In this video I show you the currency orderbook and demonstrate how it can show you levels where we could see stop hunting and potential support and resistance levels.
Many traders blame their broker for stop hunting although in most cases they are putting their stops at the same place as many other traders. This means that there are often large amounts of volume at certain levels where market makers and banks can find volumes to fill their clients positions without moving the market. Of course other large traders may also look to take advantage of these areas using algos or manually trading.
Retail traders can also find out how using the order book along with knowing where there are open positions can help them find short or long bias and areas of support and resistance.
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Chapters:
0:00 An introduction
2:34 The market makers affect
6:05 Looking at the order book
13:01 Retail sentiment
18:21 Putting both sides of the book together