Why Your Stop-Loss Hits Just Before the Price Reverses
Sounds familiar? The price nearly touches your take-profit, misses it by a hair, then reverses. Or your stop-loss gets hit — and boom, the market moves exactly as you predicted.
That’s not just bad luck. It’s called a stop hunt — a common market move where big players intentionally push the price into areas filled with liquidity (like your stops or liquidation levels) before going in the intended direction.
Our stop-losses, take-profits, and liquidation points form visible liquidity zones. And yes, market makers love these zones. They often drive the price there to "harvest" liquidity.
What helped me? I started placing my stop-loss a bit further than the obvious level, and my take-profit slightly closer. The result: more winning trades and fewer frustrating reversals.
⚠️ But here’s the catch:
This trick won’t save a trade if your initial direction was wrong. If you're trading against momentum or trend — no smart stop-loss placement will help. You just need a clean exit.
Bottom line? Think beyond textbook levels. Avoid the crowd. Sometimes, a small shift in your strategy makes a big difference.
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