I continue to see what can only be described as an unprecedented & uncanny series of stop-raids on the official trades that barely clip the stops on both long & short trades, with the trade going on to play out as expected.
This is quite likely the result AI & algo trading programs that are designed to sniff out the logical (and actual) levels where stop clusters exist in order to run them & then reverse the trade to position for the trend change.
Maybe, maybe not but regardless, for many years I’ve been setting my stops slight above the levels in which I believed the masses would have their stops set in order to minimize getting caught in a stop raid & I’ve never seen so many stops raids as I have since Q4 2017.
As such, I plan to set the stops on more of the swing trades based on a daily close above a certain level (such as the active ITA short trade) to allow for intraday stops raid & in some cases, I might set the stops on a weekly close above or below a certain level.
NTNX was the latest on another long line of intraday stops raids & I’ll update that one asap.