The Market loves playing "games" with all types of traders. The official reason is due to there being a price zone or area were both the "bulls" and the "bears" are fighting over a support or resistance area.
This can lead to sudden price movements both ways - until one side "wins" and is able to carry on with the move - whether it be another 10-100+ pips up or down.
If you are a day trader and trade either intraday or just one trade per day - you have bound to have suffered seeing a nice trade go into profit by 20-50 pips - only then within less than an hr have your original stop taken out - or your trailing stop - which might only be 10-30 pips behind.
I have shown below an EU 2 day 10 minutes candle chart - with 3 obvious areas of were the bulls and bears have been having confrontation :-)If you only trade daily and 4 hr candles you might not worry about the "noise" - ie 50 -70 pips either way and so might not be so aware that you normally get a false move one way - before a very quick move the correct way:-)
This happens officially because traders might be coming out of their trades as they hit their targets and new "contra" traders are at the same time entering for pullbacks. So you might have a "high" and then 15 or 30 minutes later price is 20-50pip the other direction.
Many traders call these type of moves "stop hunts". Other traders might call the other names - not quite as "nice" - I just call them "great opportunities" :-)
For a seasoned "scalper" or short term trader - you have an ideal opportunity to risk a 5 pip or 10 pips stop and make a quick 15-50 pips within normally half an hr.
Trades like these are just like the longer term or position trader - who end up with 250-300 pips over a few days - but as used a 70-100 pip stop - ie RR of 3 or 4 .
I would prefer the same or even a better ratio in half an hr - allowing me further opportunites to take more trades - using "free money" from part of my profit. ie if i have a RR trade of say 4 - i can use half of the profit on another money - and what ever happens - I am still up for the day.
Please remember - you will not catch every "stop hunt" type trade - but you really don't need to as the potential rewards of small stops are well worth the risk. Also I do advise you do try under 15 min charts to assist you in helping you understand what does go on :-)
All those traders today on the EU who took a new sell under 1.3115 hoping it would hit 3080 must have been really surprised when within half an hour it was back up testing 3180 high again.
What happened to that to that previous 12 hr down trend - and it even made a new monthly low :-)
Very strange - but then thats forex trading :-)
Have a great May