IF You're One From This Then Read This 👇
This chart perfectly shows what stop-loss hunting is. When you buy, big players push the price down to hit your stop-loss and force you out of the trade — that's the dump you see after buying. While you're holding, they keep the price moving sideways to bore or frustrate you. And just when you give up and sell, the price shoots up — because your exit gave them the liquidity they needed to make their real move. It's not bad timing, it's a trap set by the market to target retail traders.
Stop-Loss Hunting Explained 👇
Stop-loss hunting is a tactic used by big players (like institutions or market makers) to manipulate price and trigger retail traders’ stop-losses before moving the market in the real direction.
Here’s how it works:
1. They know where most retail traders place their SLs — usually just below support or above resistance.
2. They push the price into those zones to trigger SLs.
3. This forces traders to exit at a loss, creating liquidity (supply or demand).
4. Once enough SLs are hit, the price reverses sharply — going in the direction the retail trader originally expected.
👉 Purpose?
To shake out weak hands, collect liquidity, and enter the market at better prices.
Real Example:
You buy a coin at $100, set your SL at $95.
Price dips to $94.90 (stops you out), then shoots to $120.
That’s SL hunting.
Tip: Always place your SL in smarter, less obvious areas — not where everyone else does.