You place a clean trade.
Perfect setup.
Stop-loss in the “right” place.
Then price spikes, hits your stop… and moves exactly in your direction.
That’s stop-loss hunting — and it’s very real in crypto.
Let’s break it down simply 👇
What Is Stop-Loss Hunting?
Stop-loss hunting happens when price moves intentionally toward areas where many stop-loss orders are placed, just to trigger them before reversing.
Those stop-losses become:
Market sell orders (for longs)
Market buy orders (for shorts)
📌 Stops = instant liquidity.
Why Stop-Loss Hunting Happens
Large players (market makers, institutions) need: ✔ Liquidity to enter big positions
✔ Opposite orders to fill size
Retail stop-losses provide that liquidity.
📌 Your stop helps them get filled.
Where Most Stop-Losses Are Placed
1. Below Support / Above Resistance
The most common mistake:
Long → stop below support
Short → stop above resistance
📌 Everyone sees these levels.
2. Equal Highs & Equal Lows
Double tops
Double bottoms
Range extremes
📌 Clusters of stops live here.
3. Trendline Stops
Clean diagonal trendlines
Popular patterns
📌 The cleaner the trendline, the bigger the hunt.
4. Session Highs & Lows
Previous day high/low
Asian session high/low
📌 Session liquidity is premium.
How Stop-Loss Hunts Look on Charts
✔ Fast spike or dump
✔ Long wick
✔ Quick rejection
✔ Sudden volume burst
📌 Speed + rejection = hunt.
Stop-Loss Hunt vs Real Breakdown
Stop-Loss Hunt
Real Move
Long wick
Strong candle close
Instant reversal
Follow-through
Low continuation
Sustained momentum
📌 Candle close matters more than the spike.
Why Retail Traders Lose
❌ Stops at obvious levels
❌ Tight stop-losses
❌ High leverage
❌ Entering before liquidity is taken
📌 Predictability gets punished.
How Smart Traders Avoid Stop-Loss Hunts
✔ Wait for the stop sweep
✔ Enter after rejection, not before
✔ Place stops where price should not return
✔ Use structure, not emotions
📌 Trade after the trap — not inside it.
Pro Tip
If price:
Takes a level
Fails to hold it
Quickly re-enters the range
➡️ That’s often your best entry.
Market Truth
Markets don’t hunt you personally.
They hunt liquidity — and most traders put it in the same place.
📌 Be the trader who waits for the hunt.
Final Thoughts
Your stop isn’t wrong — your placement is.
Let price take liquidity first.
Then trade the real move.