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Gunning for stops


Something I was reading the other day got me thinking. Since most newbie's get stopped out 8-10 out of ten maybe one should try and guess what direction the most stops are in and in what direction because.......As I begin to dig deeper, I found out that some instatutional traders (+100 cons traders) are doing the same thing. In essence gunning for newbie traders stop.

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I am roughly looking for 2 peaks on the ES at the same tick a few min apart and a nice valley low or peak.


Here was the only one I saw today.....





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This is discretionary, as you still have to decide where to enter.




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Ohhh watch the time and sales real time and you'll see when the stops get filled it looks like



1:34:46.... 1001.5.... 1
1:34:45.... 1001.5.... 6
1:34:45.... 1001.5.... 1
1:34:45.... 1001.5.... 1
1:34:45.... 1001.5.... 4
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 7
1:34:44.... 1001.5.... 3
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 2
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 6
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 4
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 7
1:34:44.... 1001.5.... 3
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 2
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 6
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 4
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 7
1:34:44.... 1001.5.... 3
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 2
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 6
1:34:44.... 1001.5.... 1
1:34:44.... 1001.5.... 1
I wrote about something similar in an Anatomy of a Spike.
wouldn't it be just as easy (or easier)to find possible direction by looking for divergence in volume?

just a thought

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I'd argue the point. I don't think it's "Gunning for Stops" so much as it is "The Big Boys"
trying to find levels of S/R.
Isn't the ES totally electronic?
(if I'm wrong I'll really look like an IDIOT!
)
The problem I have with volume divergence's is I can always find one.

Here's a chart from today still gunning for stops....



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quote:
Originally posted by piperian

I'd argue the point. I don't think it's "Gunning for Stops" so much as it is "The Big Boys"
trying to find levels of S/R.
Isn't the ES totally electronic?
(if I'm wrong I'll really look like an IDIOT!
)




Here are a few quotes

Jeff Nichols, a Boca Raton, Fla., precious metals consultant, says a well-capitalized floor trader can occasionally pull off such a move in small, thinly traded markets, particularly if other traders sense what's going on and join in. But in larger markets, such as currencies, it takes a lot of money to gun for stops successfully because the player has to be able to buy or sell contracts in significant quantities, Mr. Nichols says.


Well-known commodities trader Richard J. Dennis says he tries to anticipate where technical traders have placed their stops and gauge the effect that activation of the stops will have on prices. "If you look at charts, you can make a reasonable guess about where the stops are," Mr Dennis says, adding that he uses this information to avoid those areas. "They're a little bit like land mines going off, and you don't want to walk into the mine field."


I am only trying to anticipate where newbie trader is placing there stops.
Piperian,

yes the ES is all electronic. That still does not negate the fact that newbie traders lose more than they make. And the markets seem to be drawn to where they place stop orders. Federal law makes it against the law for the regulators to manipulate the market but large traders do run these stops. I'm not cherry picking these charts nor Am I saying the CME moves the ES to where the large stop orders are. But for what ever reason they are attracted to certain levels like these V's and inverted V's these are trades I am taking.....Have a great weekend!
quote:
Originally posted by CharterJoe

Piperian,

yes the ES is all electronic. That still does not negate the fact that newbie traders lose more than they make. And the markets seem to be drawn to where they place stop orders. Federal law makes it against the law for the regulators to manipulate the market but large traders do run these stops. I'm not cherry picking these charts nor Am I saying the CME moves the ES to where the large stop orders are. But for what ever reason they are attracted to certain levels like these V's and inverted V's these are trades I am taking.....Have a great weekend!

Totally agree.

Does anyone know where I can view more than 10 tick levels on the ES for working stops?? I can view 25 in the TF, but only 10 on the ES....I would like to see at least 25 levels.


What I found out on the TF, shocked me I expected to see resting orders on previous highs/lows, dbl tops/bottoms, but didn't....


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does anyone have any info on how to use jtRealStats