tuesday intraday stuff (and nonsense), page-7

Hands up who uses 10 point stops on the spi? Here is an example of one of the spi's behavior patterns. I'm yet to decide if it's someone like IG/CMC moving the actual market to hit stops in their artificial market or just a common occurrence because so many spi traders use 10 points stops. Maybe it's both. Recent high was tested after market open and the longer time frames looked like a short. It seems quite a few people got short at the open and then as the market broke above the overnight high, stops started triggering buys. At 11 points above the overnight high, most of the stops had been hit and the buying stopped. What happens when the market has less buys than sells? It dumps.

Stops burnt and market continues on it's way with a few less people. I've seen this on other markets but 10 point blow offs (reverse is also true) seem to be quite common on spi.