What Is a Liquidity Hunt? (Explained Like a Pro Trader)📈💸
Ever noticed how the market spikes up or down fast before reversing direction?
That’s not random — it’s a liquidity hunt.
👉 Liquidity Hunt happens when big players (institutions, market makers, or whales) push price beyond key levels — like support/resistance or stop-loss zones — to trigger retail traders’ orders.
Once those stop-losses and pending orders get activated, it creates a liquid environment for big players to enter their positions at better prices.
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🧠 Example (as shown in image)
1. Price breaks a structure (BOS) and forms a wick — that’s the fake breakout.
2. Traders think it’s a breakout, so they enter… but smart money is waiting.
3. Price then reverses, taking liquidity from trapped traders.
4. That’s where institutions enter their real position — and the true move begins.
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🎯 Key Lesson:
Don’t chase every breakout.
Wait for liquidity to be taken — then trade the direction of smart money.
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💬 Pro Tip:
Watch for long wicks, fakeouts, and sudden spikes around key zones — they’re signs of liquidity hunts.
