The Trader’s Blueprint: Reading Charts, Market Structure, and Analysis
📍 What is Liquidity?
Liquidity is where orders are stacked—this is where smart money targets before making their real moves.
Retail traders’ stop losses = Liquidity for big players
Buy orders sit above resistance, sell orders sit below support
Market makers push price into these zones to fill orders before moving price in the real direction
📍 Types of Liquidity
🔹 Swing Highs & Lows – Clear liquidity pools where stop losses sit
🔹 Equal Highs & Lows – Perfect bait for breakout traders
🔹 Trendline Liquidity – Multiple touches create stacked stop losses
🔹 Big Figure Levels (Round Numbers) – Traders love these, and institutions love taking them out
📍 Stop Hunts: Why Your Stop Loss Keeps Getting Hit
Stop hunts are intentional price movements to trigger retail stop losses before a real move happens.
🚨 How Stop Hunts Work:
Market makers push price to a key liquidity level.
Stops get triggered, forcing traders out of positions.
Smart money takes the other side of those trades.
Price moves in the original direction, leaving retail traders behind.
📍 How to Avoid Stop Hunts
✅ Don’t Place Stops Where Everyone Else Does – Think like a smart trader, not dumb money.
✅ Use a Wider Stop & Reduce Lot Size – Forces market makers to work harder to take you out.
✅ Wait for the Liquidity Grab Before Entering – If price takes liquidity and rejects, that’s your confirmation.
🔑 Key Takeaway:
Price doesn’t move randomly. It moves where money is sitting. If you keep getting stopped out, you’re placing stops where big players want to take them. Stop thinking like retail, start thinking like a sniper.