Your Profit Will Grow if You Wait for Stop Hunt first.Bitcoin / U.S. dollarBITSTAMP:BTCUSDDavid_PerkEvery trader has seen it happen: you take a position at the “obvious” level, only to get stopped out by a quick wick and then the market runs exactly where you expected. That wasn’t bad luck. That was stop hunt in other words liquidity grab Recently I came in to this quote: Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars. - Bernard Baruch Today I will show you that it's actually wrong. Buying the bottom and Selling the top is best way to trade, if you understand when stop hunt was completed and traders were trapped in the wrong side of the trade. Then you can put your SL safely below / above the Lows / highs. ‼️Don't be a liquidity Price doesn’t move randomly inside ranges. It hunts liquidity at the edges. • Retail trap: Traders pile orders right at the Double top / bottoms and ranges • Smart money: Hunt's double top / bottoms and ranges starting the move. 📌Double Top / Double bottom sometimes price leave this formation, sometime even triple top / Bottom. It's on purpose and its telling us price will go there again, Im using these as the targets. Traders still think that if price rejected somewhere for few times that its strong level and its safe to put stop loss above or below and thats the problem. As many traders thinks this way its create a huge stop loss cluster = Liquidity zone which is attractive for the market makers. ‼️ If you see a double top / bottom then never enter before price dip in to it. Not even when there is clear trend line break its trap. Wait , you will get much sharper and better risk reward trade. If a pivot level gets tapped multiple times, it's on purpose. Smart money are creating illusion of strong support / Resistance so they cant manipulate price above / bellow where they grab the liquidity and reverse the market. 🧪Example 1 - Triple top stop hunt, if you enter before you would serve as liquidity 🧪Example 2 - Triple top stop hunt, even if you are right with the direction, not eating for the stop hunt first will ruin your trade 🧪Example 3 - Double top stop hunt - he was nice trend line break which attracted more sellers and as you can see they been right with the direction but setting your stop loss just right above double top is not working 🧪Example 4 - market makers used triple top used to offload positions above this liquidity level. 💊 Les informed traders trades patterns like : Double bottom, Double top and they put the stop losses above the range - This creates a Liquidity cluster which smart money needs to execute their orders. They will come for it before the real move happen. 🧩 Now we know where stop hunts mostly occurs. So we know where we should not put our stop loss. Let's have a look where to put it. But first. We don't want to be a pattern traders. We need to understand market context. Let's have a look where the liquidity is. 📈 Continuation If todays daily candle closed above previous days high and its still not reaching the key level, then liquidity is above todays high. Why ? Because people have intentions to sell highs to early, so and price will most likely go there. So we are bullish. Bullish Close📈 Reversal If todays candle wicked above previous day high, but closed below , then we can expect liquidity is below Previous days low. Why? Because mostl likely traders entered fake high break out they put SL below days low. It's signs of reversal. 🧩 Liquidity theory Its always good to thing about the markets in terms of what others are doing. Back in 2014 when I worked in broker I had a chance to watch the order book. I have been able to see how traders are entering the markets where they put they stop losses. In the fact many people are chasing the price and they always buy highs and sell lows and most of the time they hide stop losses bellow / above the lows / highs of broken candle. So if that is true, it can look like on the picture below. We can see price moving up. Focus on candles with the wick. It's what we see now. But at specific moment that candle was looking bullish and most likely traders entered with hope for the continuation. And they have put stop loss below the previous days lows.as that candle closed with the wick below the previous days high traders are now trapped in the longs and stop run against them starts now. It's our opportunity its our range - Our new bias. Same it will be for the bullish case, traders sell the break out of the lows and put their stop loss above previous days highs. This behaviors creates a stop loss cluster there - which is liquidity and its high chance market will go there soon. It's our opportunity - our new short term bias In the fact we doest need to predict markets longterm moves, read fundamentals or try to translate what politicians are saying and what effect it will have on the markets. You just follow this patterns. Liquidity Trap , stop hunt and where is another liquidity. 🧪How to use this information for your advantage train your eyes and focus on the double tops / bottoms thats where the liquidity mostly will be resting. Always wait for the stop hunt after that is your time enter the market. Im looking for the trades always after the stop hunt in other words range manipulation and order block / CIOD creation. Let's check few past ideas bellow. My mission is educate others to find the way to enter after the stop hunt I will use charts that I posted in the last November and today I will add the outcome and will explain the entry. Here is what I said and posted “Here are charts with the current ranges I’m seeing, together with my bias for the next week. Go to your charts, find them, and observe how the price action develops. You might find something valuable to add to your trading arsenal.” 🧪DOLLAR- Monthly CLS range I Weekly CLS Range Here we have been able to see the Monthly range and stop hunt on the candle and close back inside. It's a signal on HTF that traders could be trapped in a wrong position. Hence we can sell the top and our SL should be safe above the highs. Lets have a look to the outcome 🧪GBPUSD - Monthly CLS range & Weekly CLS range Here we can see same picture price manipulated in to the liquidity zone. Traders entered a shorts and now they are in the position. Price closed back tin the range and created CIOD. It's our moment we can enter. SL is safe below the lows because market makers will not give them chance to exit. Now look a bit higher where we defined where is liquidity after this happens. And what happened? 🧪EURUSD - Monthly CLS range & Weekly CLS range this is completely same picture as the GBP and it has played out same way ‼️ Summary: - Never put stop loss above Equal highs or low ( if there is not SM) - Wait for stop hunt and confirmation - OB / CIOD then your SL is safe below the lows / highs - Know where is liquidity after the stop - This outside of the box, where others probably have Stop loss if there was trend line break and double top / Triple top. Price will go there most people are trading this. You will enter once they are stopped out. 🚀Boost | 🔁 Share | 💬 Comment | ✅Follow for more CLS setups Adapt useful, Reject useless and add what is specifically yours. David Perk