Market Analysis

The Stops Above the High

Stops really do pile up above obvious highs, and price really does trade through them and turn. This paper draws both, and then separates them: the clustering is arithmetic — everyone reading the same chart puts the stop in the same place — while the claim that someone moved price there on purpose is a story about intent that predicts nothing the clustering does not already predict. It shows why every sweep looks successful in hindsight, how to define one before the outcome so it can be counted, and the single consequence of clustering that pays whether or not the story is true.

Difficulty

Advanced

Reading time

46 min

Pages

27