What Is a Stop Hunt?
A stop hunt is a common trading term for a price movement that triggers stop-loss orders around obvious levels.
For example:
1. Many traders place stops below a visible swing low.
2. Price moves below that low.
3. Stop orders are triggered.
4. Price may continue lower or quickly reclaim the level.
Not every stop-loss trigger is manipulation. Markets naturally move toward areas with available liquidity.
Key takeaway: Avoid placing stops at obvious levels without considering market structure and volatility.
Have you ever experienced a liquidity sweep just before price moved in your original direction?
