FOREX trading strategy / learn to use the "Stop hunting" technique - Part 1

Before learning about the "stop hunting" trading strategy, here is a brief explanation about FOREX and the basic terms you should be familiar with before reading this article.
The FOREX is the largest and still growing financial market in the world. With endless liquidity, more than $1.5 trillion changing hand every day. Anyone can use the FOREX market, today you can download trading software from a handful of broker firms offering their services.

The Foreign Exchange market has no physical place where it is exchanged and it never closes. Remember, it is all about money. Buying, selling and trading money from all over the world, creating for you opportunities to make a profit.
But the FOREX market is also a very risky market and for being a successful trader you need to do your homework, learn the market and all the aspects around it.
* Leverage - the ratio between the money you deposit in your account (MARGIN) to the actual value, i.e. using a $1,000 to buy a FOREX lot (contract) with a $100,000 value.
** Marginal trading - trading with a borrowed capital.
*** Stop loss- An order placed with a broker to sell a security when it reaches a certain price. Limiting the investor's loss or locking in his or her profit.

Today FOREX traders and investors acquired a habit to trade with a large leverage and constant use of margin in contradiction to experience traders who know to limit their leverage up to a regular 10:1 leverage ratio, in the FOREX market the leverage ratios sets new heights within any comparing financial market by offering enormous 100:1 ratio and some firms even rise the ratio up to 200:1 meaning that you can invest $1000 for a $200,000 value control.

To understand the big difference from other markets here some leverage examples out side the FOREX world:
In equities a standard margin is set at 2:1, in options the leverage can rise up to 10:1 and in the futures markets; the leverage factor amplified to 20:1. Yes, almost certainly most of you already read about leverage and margin or already using it in your daily trading, so why did I emphasize this subject ?
What if I can tell you that there is an opportunity to make profit by predicting short-term movements on the back of those high leverage traders ? This is the heart and soul of "stop hunting" strategy.