MODULE 3 OF 9
Liquidity & Stop Hunts
This is the biggest 'aha' moment in trading. Banks need liquidity to fill huge orders — and retail stops are the perfect source.
1
Where Retail Traders Put Their Stops
Retail traders have been taught to put stops below support. Banks have been taught to hunt those stops.
2
Equal Highs and Equal Lows = Liquidity
When price touches the same level twice, retail traders put stops there — making it a target for banks.
3
The Stop Hunt Pattern
Stop hunts always look the same: a quick spike through a level, then a fast reversal. That spike is the entire point.
4
How to See a Stop Hunt Forming
You can often see a stop hunt before it happens — which is one of the most powerful edges in trading.
5
Trading After the Hunt
The stop hunt is the entry signal. Enter when the wick closes back inside the level.
6
Copy This: The Stop Hunt Trade
The complete stop hunt trade from mark-up to entry to management.