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Overview:

There is a reason they say the “trend is your friend”.  It is very easy to trade a trend, and when a market is not trending, it becomes much more difficult just due to noise and the fact it opens the door for larger operators to run stops.  We never blame market manipulation for a loss, it is part of the game, and you either adapt or get out.  So how do we adapt?

One strategy that we use in range bound markets is simple yet conservative.  We look to take advantage of when market operators run stops in range bound markets, however, nothing comes without risks and this one is no different.  There is no perfect strategy but having multiple strategies in your tool box provides more opportunities to trade different environments.  This is far from a favorable environment in fact it is really a stackers market.

Stop running is done during low periods of liquidity in shallow markets.  We see this in Forex, and the futures market which are regulated.  What a large market operator will do is look for typical trade setups in non-trending markets.  Though they can not see the stop losses, unless they are an exchange, they can get an idea of where they are and using volume calculate the amount of sell volume needed to push through them..

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