Today’s CHESS chart gave us a perfect example of how the market hunts liquidity on both sides — a move known as stop-hunting.
What is stop-hunting?
It’s a strategy where big players (market makers, whales, even exchanges):
Push the price toward zones loaded with stop-loss ordersTrigger those stops, forcing traders out of their positionsAbsorb the liquidity and return the price to normal — or reverse it completely
CHESS Example (June 9):
Price spikes sharply to $0.080
— lures long entries expecting a breakout
— squeezes shortsThen quickly dumps to $0.0713
— stops out longs with tight entries
— invites fresh shorts that soon get trappedPrice bounces back to $0.076
— no retail trader wins — only the market maker
$CHESS How to spot a stop-hunt?
Sudden wicks with high volumeSharp move followed by quick reversalPrice returns to the previous levelMAs converging, RSI neutral → no reason for the spike
How to protect yourself?
Avoid placing stops too close to obvious levelsWatch volume and candle structure, not just priceWait for confirmation — don’t jump on the first breakout
Conclusion:
CHESS gave us a classic lesson today — how one candle can wipe out both longs and shorts.
If you were confused about what just happened, here’s the truth:
They were hunting your stop.
#StopHunt #MarketManipulation #CHESS #cryptotrading #WhaleMoves