Forex by Harsh / Library

Market Structure & Liquidity · Entry 43 of 71

Why You Keep Getting Stopped Out

Understanding retail liquidity pools and timing mismatches

Why You Keep Getting Stopped Out — Understanding retail liquidity pools and timing mismatches

The Reality of Stop Hunts

You're not unlucky... you're just trading where everyone trades.

How the Retail Trap Works

  1. RETAIL PLACES SL (Stop Losses) below obvious lows or above obvious highs, creating a dense liquidity pool.
  2. INSTITUTIONS target that liquidity to fill their massive order blocks.
  3. PRICE HITS SL to collect liquidity first, and then moves strongly in your predicted direction.

Core Lesson

YOU'RE NOT WRONG... YOUR TIMING IS. Wait for the stop hunt to occur before placing your entries.