Step by step
How to read it
- 1Above the highs: sellers’ stops and breakout buy orders.
- 2Below the lows: buyers’ stops.
- 3Price reaches into a pool, the orders fill, and it turns.
Watch out
Common mistake
Thinking someone “sees” your personal stop. Stops simply gather where most people put them — beyond the obvious highs and lows.
In one line
Definition
Orders waiting to be filled. Pools of stop orders above highs and below lows are liquidity that price often reaches for.
Check yourself
Check yourself
Where do buyers’ stop orders usually gather?