Step by step
How to read it
- 1Buyers’ stop orders gather below the equal lows.
- 2A fast spike into them fills those orders.
- 3Price snaps back. The stops were the fuel; the move is done.
Watch out
Common mistake
Putting your stop exactly under obvious equal lows. Give it room beyond the crowd — and size down for it.
In one line
Definition
Price running to a pool of stop orders and snapping back — the mechanism behind many false breaks.
Check yourself
Check yourself
What does a stop hunt look like on a chart?