Level II and T&S are 2 parts from derivatives markets where you can get order flow information easier.
The global fx market is a bit more complicated if you're wanna measuring currency flow.
Only looking at charts and guessing here and there are sitting stops - it doesn't work like that.
There are lot of different stop hunting pattern because the participants act different in handling their weak positions if they are trapped.
You will never know where stops are and how far it needs to drive the price to liquidate that pool.
Stops get triggered all the time, that's nothing new.
It happens like you've said under or above consolidation pattern and even in that range.
But without statistical edge in knowing how big that pool is, it's an dangerous undertaking.
You're playing the breakout and suddenly you will become the prey.
A lot of traders call it false or "fake" breakouts.
So it's essential to know the size of that pool and how it could be hunted depending on the market condition.
Furthermore you have to identify which market participant is trapped and who is in control.
If you can crack that code you will be able - with some practice - to "read" the intentions of the big players before price will move in that direction.
Triggering some stops is then just a byproduct.
Identifying the imbalance before the outcome occurs puts you in the first best seat.
It's also a kind of front running.
I think for the most this illustration is very confusing.
They're talking about vacuum or something like that.
If you're making a transaction size becomes known and MM are keeping records.
If you're building inventory within a (new) value zone, how would you do it?
Right, sucking in as many as possible.
It's the same if you're playing poker when raising inconspicuously with a very strong hand.
As a large participant you can risk it because of various reasons: better information or longer term investors are standing on the sideline.
The disequilibrium is developing over time and will be unloaded when the initiator decides to flush out the opponents.
That is the exact point when his money/liquidity will shift to the opposite active side.
99% from the retail trades stay within the bucketshop and will never be routed to the real interbank market.
Therefore, in my opinion, their positions are nonsense.
a bucketshop always trades against it's clients.
Because the most traders are continuously on the wrong side and losing,there is no need to hedge anything.