What is Liquidity Run Strategy? — The Hidden Truth Behind Stop Loss
Market prices do not move randomly. Price moves from one Liquidity Pool (where many orders accumulate) to another Liquidity Pool.
Understanding Liquidity Run means understanding the moves of Whales (big players).
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🔸 How does Liquidity Run Strategy work?
Stop Loss = Liquidity (meaning money)
Short traders' SL = Buy Orders (Buy Stops)
Long traders' SL = Sell Orders (Sell Stops)
Why do Whales do this?
If Whales want to buy on a large scale, they need many Sellers.
→ These Sellers are found at the Stop Loss of Longs.
If Whales want to sell on a large scale, they need many Buyers.
→ These Buyers are found at the Stop Loss of Shorts.
This means Whales first hunt for Stop Losses, consume Liquidity, and then send the price in the real direction.
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