USDZAR Short
An area of interest is seen from the 4H to the daily timeframe. This is the area where retail traders were already taking their short positions with stop losses just above, and a lot of pending buy stops on the same level.
What then happens in this area is that the market pushes above that level to hit stop losses and trigger buy stop orders and immediatetly returns below the level. This is a process known as a "liquidity sweep".
This process is advantageous for the more patient traders because with the long position opened in order to liquidate the AOI, those orders have to be close in order to move the market lower as everyone expects. These are the levels we enter from.
What then happens in this area is that the market pushes above that level to hit stop losses and trigger buy stop orders and immediatetly returns below the level. This is a process known as a "liquidity sweep".
This process is advantageous for the more patient traders because with the long position opened in order to liquidate the AOI, those orders have to be close in order to move the market lower as everyone expects. These are the levels we enter from.
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