Feb

Range Box Stop Hunting setup

EUR/USD 15M 2/19/09 STOP

This another version of range box trading that would have paid well for you the most recent sessions starting at 5:30 AM PST. Range box stop hunting is one of the better setups during periods of high volatility. It is not a productive play in less volatile times

Major players will push the market in order to cause a cascade of breaking stops which will then push the market lower and then they take their profit. Some times these players work the range box shown on this chart.

The Range Box Stop Hunting Setup is …..Trade with the trend. Enter with the trend 15 pips above 100 and take profit 15 pips the other side of 100. Normally you set your stop loss 15 pips beyond entry. Stop hunting is a momentum play. The big speculators initiate the momentum and get out and you want to be in and out with them.

Last Edit 3/1/09 …The stop hunting setup I now favor is to to trade the GBP/USD at 12 Midnight PST, to enter 30 pips above and below 100 going for 25 pips profit with a 25 pip stop loss. You can play with this range box, the stops and settings and time frame. I also see some probabilities at 6 AM but have yet to test this time period extensively. I first look for a wild market on the 1 Hour charts, see below. Then I like to see the pair near the 50,s at midnight, and or trending. The more you review this trade in past 5M charts the more comfortable and accurate you will become in playing it out in real time trades. ps. You will see many more posts about this trade style in February 09. The trade paramaters are shown on the post on 4/12/09