A stop hunt is when large players (market makers, whales, institutions) deliberately push the price to trigger the stop-loss orders that retail traders have placed, so they can:
1. Fill their own large positions at better prices
2. Grab liquidity from those triggered stops
3. Then reverse the price in the original direction
Key signs of a stop hunt:
· A sudden wick/spike below support (or above resistance) that quickly reverses
· Happens often around round numbers, session opens, or news events
· Volume spike at the fake move, then reversal
Also it is called:
· Liquidity grab / liquidity sweep
· Stop run
· Bear raid (downside) / Bull raid (upside)
· "Fakeout" or "flush"
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