Deliberate price movement through a level to trigger clustered stop-loss orders before reversing.
A Stop Hunt is a liquidity sweep viewed from the other side: the intentional driving of price through an obvious level to trigger the stops resting there. Whether or not you believe it's 'deliberate,' the mechanic is the same — large orders need liquidity, and stops are liquidity. Stop hunts are why obvious levels get wicked through before real moves begin. The LA Traders defense: never place stops at obvious levels, and never enter on the first touch of a level. Wait for the hunt, then trade the reclaim.
If your stop is at the same place as everyone else's, you're the target. Understanding stop hunts flips you from hunted to hunter.
You went long at 5,840 with a stop at 5,837.90 — just below the ON low of 5,838. Price dips to 5,837.75, takes your stop, then rallies 20 points. Classic stop hunt. The fix: enter AFTER the sweep, not before it.
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