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Liquidity grab

A quick move beyond an obvious level that triggers resting stops, followed by a reversal back through it.

Stops cluster in predictable places: beyond swing highs and lows, round numbers, and session ranges. Those clusters are resting orders, and orders are liquidity. A move that runs through them fills large participants at better prices and then reverses.

Whether this is deliberate targeting or just the ordinary consequence of everyone using the same levels is argued endlessly and rarely matters. The practical response is the same: place stops at a genuine invalidation rather than at the obvious spot, and treat a failed break back inside the range as information rather than as a grievance. See stop-hunt and fakeout.

Related: stop-hunt, fakeout, round-number-bias, stop-loss

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