Taking out Stop orders
Hammer Candle Pattern
|1-hour Clearing of Stop Orders by Manipulators|
gaped down to the monthly S2 Pivot in the Asian session and from there the Euro retraced up to the hourly 10 SMA.
The following downward swing terminated at 8:55 a.m. GMT at 1.2082 with the creation of a hammer candle pattern/ price rejection (5 min chart red ellipse).
The Euro moved up and slightly penetrated the recent high to reach 1.2139 (green line) before marked rolled over and then penetrated the recent low at 1.2082 (blue line). This price action was purely Stop Running. The Market Manipulators cleared the stops at the recent Highs and Lows (no confirmation on 5 min chart).
The relatively long 1 min breakout candle at 1:42 p.m. (not shown) suggests the clearing of many stop and pending limit orders. Market did not close below the recent low (1.2082-blue line) on the hourly chart. The clearing of the stops on both sides (low/ high) sometimes precedes larger moves as the mainstream traders are already stopped out or fooled into the wrong market direction.
In the US Session, the EURUSD Manipulators also cleared the stops above the new high with a slight breach of this level after market already took out the stop market orders at the low of today's market range.
The red ellipses on the hourly chart shows Breakout timing setups at 7 a.m. and 1 p.m.. The Euro closed at the monthly S2 (respecting support) and market moved below it with the beginning of the new hourly candle (Termination of the bear flag/ consolidation at 7 a.m..).
We will see whether the gap opening at 1.2156 (brown line) will be closed soon.
|5 min Candle Pattern Hammer | Stop Running|