medium · Volume Spread Analysis supply-demand-smart-money
Why are professional probes and 'stop-hunts' most frequently observed during the early morning opening range or during the lunchtime lull?
- Retail traders are most active during these times, providing the professionals with more 'weak hands' to exploit.
- Trading is thinner during these periods, making it easier and cheaper for professionals to move the price with smaller orders.
- Professionals are legally prohibited from marking markets during peak institutional trading hours.
- The market-makers need to 'clear the books' of overnight orders before the true price discovery of the day can begin.
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