Trade Like a Dealer: (And Avoid Death by a Thousand Stops)
by: Boris Schlossberg
from Stocks Futures Options

Instead of hating dealers, traders should learn to trade like them. The insights are worth the trouble.

A trader stares intently at the three-minute chart of the E-mini S&P contract on his computer and sees that prices are plummeting through the 20 period moving average. Instantly he sells several lots, anticipating a sharp move down. But suddenly, price action pauses, stabilizes and then quickly turns around, running back up beyond his entry point. 

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