What happens actually?
When there is a big manipulation
there will be a sell stop added so the buyers decided to re-test the 3 support only for 2 times (R1 & R2) and you wondering where is R3. R3 will come when the market goes up nonstop to make the R3. Now the EURUSD is already at R3 and retracing a lot so what will happen next? The big trader will put a lot of buy stops before reaching the QM level where they manipulate the price and their buy stop is their stop loss. They know retailers will put a lot of sell at R3 so when the news comes, they will buy until they reach the fakeout level made from the previous entry. This is only valid when there is a QML and if there is no QML, it is a valid breakout and the price will go up straight away. Credit to CMS for this setup.
When there is a big manipulation
there will be a sell stop added so the buyers decided to re-test the 3 support only for 2 times (R1 & R2) and you wondering where is R3. R3 will come when the market goes up nonstop to make the R3. Now the EURUSD is already at R3 and retracing a lot so what will happen next? The big trader will put a lot of buy stops before reaching the QM level where they manipulate the price and their buy stop is their stop loss. They know retailers will put a lot of sell at R3 so when the news comes, they will buy until they reach the fakeout level made from the previous entry. This is only valid when there is a QML and if there is no QML, it is a valid breakout and the price will go up straight away. Credit to CMS for this setup.