Where the stops hide
Stop orders cluster just beyond obvious levels. Big players often sweep them before the real move begins.
Key takeaways
- Obvious lows and highs attract clusters of stop orders.
- A sweep is a quick wick through the level that grabs those stops, then reverses.
- A sweep followed by a strong reclaim of the level often signals the real move is starting.
Price wicks just below equal lows, then quickly closes back above them. What might that be?
Transcript
You place your stop just under the low. Price dips, takes you out... then rockets in your direction without you. Sound familiar? It's not bad luck. It's liquidity. And today, you'll learn to see it coming.
Here's what's really going on. Big players need a lot of orders on the other side to fill their huge positions. And where do thousands of stop orders sit? Just below the obvious lows. That cluster of stops is fuel.
Watch it happen. Price taps the same low once. Then again. Equal lows... and everyone's stops pile up underneath. Then one sharp wick dips through, grabs all those stops... and price snaps back up. That's the sweep.
So the cheat code? Don't be the fuel. Wait for the sweep. When price wicks through the low and closes strongly back above it... that's often where the real move begins.
Take the quick check below to lock it in. That's the free modules complete. Module three is where it all clicks together. Next, Module three opens with: Trade like the casino, not the gambler. Learn it. Practise it. Prove it.