Below the low
The same two piles sit under every swing low, both of them sell orders, and taking that low is how a very large buy gets filled.
Everything in the last two lessons flips upside down under a swing low. The mechanism is identical, so this is short.
The first pile: selling the break
A downtrend is a run of lower highs and lower lows. Say the most recent swing low on gold is 2,396.
Traders who expect the fall to continue park an order below it. A sell stop sits below the current price and opens a sell the moment price reaches it.
Below the low sit orders to sell, waiting for the low to be broken.
The second pile: the stops of the buyers
Other traders bought near that low, expecting it to hold and price to bounce.
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