Why the Market Fakes You Out Before the Big Move

Ever jumped into a trade just to watch the market hit your stop-loss… then reverse in your intended direction? Frustrating, right? It’s not bad luck – it’s a liquidity sweep, a smart money tactic.

💡 Here’s What’s Happening:

Big players hunt for liquidity where retail traders place stop-losses. They trigger these levels to fuel their own positions before the real move begins.

🔍 How I Use This Insight to Trade Smarter:

Spotting Key Zones: I look at daily and 4-hour charts to find areas loaded with liquidity.

Patience is Key: I wait for a quick spike (the fake-out) before considering a trade.

Timing the Entry: I drop to smaller timeframes (3H, 2H, 1H, or 15M) to find a market shift before entering.

⚡ Stop Getting Faked Out!

Next time the market spikes against you, check if it’s just collecting liquidity. Knowing this could be the difference between a losing trade and catching the big move.

Who else has been faked out before? Let’s chat in the comments! #MarketLiquidation