The "safest and most standard" stop-loss level you see on the chart is, in the eyes of MM (Market Maker), a pile of shiny gold mines.
When trading, don’t just focus on where retail investors are "getting in"; you need to pay attention to where retail investors will "crash".
That place where bodies are strewn about is actually the most liquid area.
With such a large amount of capital, if MM wants to sell, who can take it? If he wants to enter the market, who will sell to him? He cannot just slam the market price directly, as that would be too costly.
He has to set a trap, forcing you to hand over the chips in your hands.
When retail investors go short, stop-loss orders are essentially buy orders. When tens of thousands of retail investors' short stop-losses are triggered instantly, that results in a flood of buy orders.
At this point, the large sell orders in MM's hands can comfortably be handed over to retail investors.
Therefore, your stop-loss order is the fuel that ignites the market for MM.
