abbasinoman714

🎯 Where to Place Stop-Losses to Survive in the World of Liquidity Hunting

Friends, I’m sure you all know that stop-losses are an essential tool for any trader. “It’s important to set stop-losses,” every mentor will tell you — but they often forget to mention where exactly to place them.

In this post, I’ve outlined 5 key rules to help you find the right spot for your stop-loss. I’ll also break each of these rules down in detail in separate posts.

1. Avoid textbook spots

🟡 Directly behind the nearest local high/low.
🟡 Just above/below obvious support or resistance.
🟡 Exactly at round numbers ($100,000, $120,000, etc.).

💡 Why this is bad:
These zones are visible not only to us but also to market makers. On the liquidation heatmap, they glow like targets. Price often moves there not because a “level is broken” but to collect orders.

2. Place stops beyond the liquidity grab area

Instead of placing your stop right behind a level, move it far enough that a stop hunt becomes costly for a large player.

Example:
If the local candle high is $117,000, don’t place your stop at $117,050. Put it at $117,350–$117,400. This is especially important for highly volatile assets.

3. Learn to read structure

Focus not on a specific price, but on the supply/demand zone. Identify where a market maker would actually have to rebalance orders to take your stop. If the zone is large and protected by high volume, it’s often better not to hide your stop there.

4. Analyze the context

🟡 What timeframe am I trading? (Stops are closer on 15M, further on 1D.)
🟡 Is there a cluster of retail stops nearby that could be taken out before reversal?
🟡 Is my stop in a very obvious area often targeted by big players (clear levels, local highs/lows, round numbers)?

5. Use “smart” stops

🟡 Mental stops — exiting manually when the market confirms your idea is invalid.
🟡 Trailing stops — moving stops along with price to lock in profit.
🟡 Structure-based stops — exiting only when the key market structure is broken, not just when a line is crossed.

📌 Key takeaway: Your stop should be placed where price will only go if there’s a real trend change — not just to “grab” liquidity.

I’ll cover each point in more detail next week. Drop some reactions if you found this useful.

Thanks!
$BTC