💡 How to detect price manipulation (Stop Hunt) and avoid it?
Sometimes, the price moves suddenly to break stop-loss levels and then immediately returns to the previous direction. This movement is often the result of institutional manipulation to gather liquidity.
🔍 How to recognize price manipulation?
False Breakout: The price breaks a support/resistance level and then quickly returns to the area.
Candles with long wicks: especially at clear liquidity areas.
It often occurs before news or after a quiet session.
✍️ Practical Example:
The price reached a clear support level, then broke it with a long-wicked candle and immediately bounced back up. I did not enter directly; I waited for confirmation from a reversal candle and entered a buy after the price returned above the support.
The trade proved that the break was a trap for speculators.
📌 Next Lesson:
How to deal with economic news in technical analysis?
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