Liquidity and Stop Hunts
Every stop-loss order sitting in the market is also, from a different angle, a resting order waiting to be filled, and clusters of those resting orders are what “liquidity” means in this context. Understanding where that liquidity sits, and why price so often seems to go find it right before turning, changes how you read the approach to an obvious level. Where liquidity collects Equal highs draw resting stops just above them. Price wicks through to run them, then reverses. ...