1. Introduction
Every trader starts by learning “supply and demand.”
Sounds logical: buyers push price up, sellers push it down.
But that’s not how it really works.
Price doesn’t move because of demand.
It moves toward liquidity — where orders exist.
The market’s goal is simple: find liquidity, fill it, and move on.
2. What Is Liquidity?
Liquidity is the pool of pending orders sitting on the chart — stop losses, limit orders, and resting positions.
Think of them as magnets.
Above highs: stop losses from shorts.
Below lows: stop losses from longs.
Around major levels: limit orders waiting to be filled.
Institutions and large players can’t just “market buy” or “market sell” huge positions — they need liquidity to fill them efficiently.
So, price hunts it.
3. The Game of Stop Hunts
You see it all the time:
A breakout above resistance → instant reversal.
A sweep below support → immediate bounce.
That’s not coincidence — that’s a liquidity grab.
Big players push price to trigger stop losses, collect those orders, and then reverse in the true direction.
Retail traders call it “manipulation.”
Smart traders call it “the business model.”
4. How to Read It
Stop focusing on predicting direction — start identifying where liquidity sits.
Look for:
Equal highs/lows → obvious stop clusters.
Clean levels that everyone sees → perfect trap zones.
FVGs or inefficiencies → likely rebalance points post-hunt.
Instead of asking “where will it go,” ask “who’s trapped?”
5. Takeaway
The market isn’t random. It’s strategic.
Every wick, every fake breakout, every stop hit — it all serves one purpose: to find liquidity.
Stop trying to predict the next candle.
Start understanding why the candle exists.
Price hunts liquidity — not logic.
Every trader starts by learning “supply and demand.”
Sounds logical: buyers push price up, sellers push it down.
But that’s not how it really works.
Price doesn’t move because of demand.
It moves toward liquidity — where orders exist.
The market’s goal is simple: find liquidity, fill it, and move on.
2. What Is Liquidity?
Liquidity is the pool of pending orders sitting on the chart — stop losses, limit orders, and resting positions.
Think of them as magnets.
Above highs: stop losses from shorts.
Below lows: stop losses from longs.
Around major levels: limit orders waiting to be filled.
Institutions and large players can’t just “market buy” or “market sell” huge positions — they need liquidity to fill them efficiently.
So, price hunts it.
3. The Game of Stop Hunts
You see it all the time:
A breakout above resistance → instant reversal.
A sweep below support → immediate bounce.
That’s not coincidence — that’s a liquidity grab.
Big players push price to trigger stop losses, collect those orders, and then reverse in the true direction.
Retail traders call it “manipulation.”
Smart traders call it “the business model.”
4. How to Read It
Stop focusing on predicting direction — start identifying where liquidity sits.
Look for:
Equal highs/lows → obvious stop clusters.
Clean levels that everyone sees → perfect trap zones.
FVGs or inefficiencies → likely rebalance points post-hunt.
Instead of asking “where will it go,” ask “who’s trapped?”
5. Takeaway
The market isn’t random. It’s strategic.
Every wick, every fake breakout, every stop hit — it all serves one purpose: to find liquidity.
Stop trying to predict the next candle.
Start understanding why the candle exists.
Price hunts liquidity — not logic.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.