ลงทุนหุ้นไทย Thailand stock investment: Super stop-hunting during 2009 crisis.

Thursday, May 10, 2018

Super stop-hunting during 2009 crisis.

This monthly chart of EURUSD before and during 2009 financial crisis shows a giant stop hunting. To explain how the market makers work, we read the market from left to right. Starting from early 2006, the market recovers from a correction and closes above sma5 line (aqua). Then it closes above sma20 (white). Then sma5 closes above sma20 approximately the same time as macd(6,13,2) turns from negative to positive zones. The price then rally up along the sma5 line and peaks out in mid 2008. During this path, the buyers keep setting their stop-loss points under the candles. After the mid 2008, the market suddenly plunges down very deep and stop hunting begins. The buyers are forced to sell out their investments to cut losses. The market makers keeps buying those positions. Within just 3 months, the market wipes out all profits from 2-year price rally and gives the buyers nothing or huge losses. The hunting ended near the beginning point of the previous rally the same time as the peak of volume, the crossing down of sma5 and sma20, and the turning from positive to negative zones of macd6132. This is the point that the market makers think they have "enough" positions to make good profits. They then manipulate the price into a new uptrend until it is obvious to the world that the new rally has been started. After this they keep selling their positions to the world at higher prices and make big profits. This profit taking part takes the whole year to finish. This is the cycle behind the market. It has been done repeatedly for centuries. It will be done in the future. It is the way the markets work. We need to understand this in order to make profits from the markets.

Investors who want to learn how to read market stories from the charts can consult me (Dr. Nimit Chomnawang) at [ m.me/nimit.chomnawang ].

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