๐ธ๐ Ever wondered why your stop loss gets hit *just* before the market reverses? It's often market makers hunting liquidity. It's not a conspiracy, just efficient market structure. Large orders need to be filled, and clustered retail stops provide that liquidity.
Where do we all place them? Just below obvious support levels or round numbers. Think $19,980 when support is at $20,000, or slightly under a visible swing low. MMs know this, and a quick sweep below these points triggers a cascade of stops, filling their orders before price rebounds. I made this mistake so many times.
To avoid being swept, give your stop room. Instead of $19,980, look for a level like $19,920-$19,950. Don't just place it at the *obvious* line. Look *beyond* it. Your rule: place your stop at least 0.2% to 0.5%...
Where do we all place them? Just below obvious support levels or round numbers. Think $19,980 when support is at $20,000, or slightly under a visible swing low. MMs know this, and a quick sweep below these points triggers a cascade of stops, filling their orders before price rebounds. I made this mistake so many times.
To avoid being swept, give your stop room. Instead of $19,980, look for a level like $19,920-$19,950. Don't just place it at the *obvious* line. Look *beyond* it. Your rule: place your stop at least 0.2% to 0.5%...