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Module 8 of 215 min read

Stop Hunt

Learn what a stop hunt is, why obvious stop clusters get targeted, and how to avoid being the liquidity.

After this module you'll be able to recognise a stop hunt and place your own stops away from obvious pools.

Important: This is educational content only, not investment advice. Trading involves substantial risk of loss. Never trade money you cannot afford to lose.

A stop hunt is a specific kind of liquidity sweep aimed at protective stop orders. Because so many traders place stops at the same obvious spot — just below support or above resistance — that price becomes a target. A quick spike triggers the stops and then price often reverses.

A stop hunt below support before reversing
Price dips below obvious support, triggers stops, then reverses higher.

Why stops get hunted

When your stop is hit, your order becomes a market order in the opposite direction — a long's stop is a sell. Those forced sells are exactly the fills a large buyer wants. This is the mechanism SMC points to: obvious stop clusters are convenient liquidity, whether by design or simply by crowd behaviour.

How to protect yourself

The practical lesson is to avoid placing stops at the most obvious price. Give the stop room beyond the sweep zone, size the position down to keep risk constant, and remember that not every spike is a hunt — sometimes a level breaks for real. Never move a stop further away just to avoid being hit.

Stop hunts target obvious stop clusters — place your stop beyond the likely sweep, not right at the crowd's price.

NextOrder Blocks

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Important: This is educational content only, not investment advice. Trading involves substantial risk of loss. Never trade money you cannot afford to lose.