M3 · L5Liquidity & Stop Hunts
Trading After the Hunt
The stop hunt is the entry signal. Enter when the wick closes back inside the level.
What This Means
Once the stop hunt candle closes, you have your signal. Depending on which direction the hunt was, you trade the opposite. A bearish spike below equal lows (sell stop hunt) = the banks have collected their liquidity and are now ready to push price UP. Your entry is a buy on the next candle open or on a small pullback.
Visual
The Rule
After a bearish stop hunt (spike below lows): BUY. After a bullish stop hunt (spike above highs): SELL.
You enter opposite to the direction of the hunt.
COPY THIS
Do these steps exactly1
Wait for a stop hunt candle to CLOSE
The candle must close back inside the range/level it pierced
2
Identify direction: was the hunt above (bearish spike) or below (bullish spike)?
3
For a hunt below equal lows: place a buy limit order near the close of the wick candle
4
For a hunt above equal highs: place a sell limit near the wick candle close
5
Stop loss: 5-10 pips below the wick (for buys) or above the wick (for sells)
6
Target: the opposite liquidity pool, or the next significant high/low
Common Mistake
Give your stop loss enough room below the wick. Sometimes there's a second, smaller fake-out after the first wick before the real move begins.