Principles of FX market and methods to profit by using stop hunting
This is yesterday's (February 6, 2025) USD/JPY 5-minute chart. As mentioned in the previous article, a one-sided downtrend continues.
However, the new low in Tokyo time yesterday was shallow, right? From this, a deeper retracement is expected.
In such market conditions, the theory is to aim for trades with a high risk-reward ratio by pulling back as high as possible when selling on rallies.
When you think about it, there is a rate where a red horizontal line exactly overlaps. The zone enclosed by the white rectangle.
Here, please remember the fundamental principles of the market...
'The chart advances toward where orders are accumulated.'
That's how it is.
As you can see, the result is as shown.
After clearing the accumulated orders, a full-scale drop begins.
This is the essence of stop hunting.
If you have the fundamental principles of FX and correct knowledge, you can place short orders here and become the hunter.
The original indicator I use can be downloaded for free.
↓ Download here
However, the new low in Tokyo time yesterday was shallow, right? From this, a deeper retracement is expected.
In such market conditions, the theory is to aim for trades with a high risk-reward ratio by pulling back as high as possible when selling on rallies.
When you think about it, there is a rate where a red horizontal line exactly overlaps. The zone enclosed by the white rectangle.
Here, please remember the fundamental principles of the market...
'The chart advances toward where orders are accumulated.'
That's how it is.
As you can see, the result is as shown.
After clearing the accumulated orders, a full-scale drop begins.
This is the essence of stop hunting.
If you have the fundamental principles of FX and correct knowledge, you can place short orders here and become the hunter.
The original indicator I use can be downloaded for free.
↓ Download here
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