M3 · L4Liquidity & Stop Hunts
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.
What This Means
The signs that a stop hunt is coming: price consolidating near a key level (accumulating retail breakout orders), a slow grind toward equal highs or lows (drawing retail traders in), or a news event that creates a spike (news is often used to hunt stops). When you see these signs, get ready — not to trade the breakout, but to trade the reversal.
Visual
The Rule
Price consolidating below equal highs for more than 3 candles = stop hunt loading.
The tighter the consolidation near the level, the more stops are stacked there.
COPY THIS
Tick each step as you complete it1
Mark all equal highs and lows on your chart
2
Watch for price to consolidate (range) near one of these levels
3
Count how many candles touch the level without breaking it strongly
3 or more touches = liquidity building up
4
Set a price alert AT the level
5
When the alert fires, watch for the spike and reversal pattern
6
Do NOT enter during the spike — wait for the close back inside the level
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Common Mistake
During news events (CPI, NFP, FOMC), stop hunts are extreme. The spike can be 20-30 pips. Wait for the close back inside before entering.
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