Liquidity sweeps: what do you do when the stop-hunt runs?
Price runs through an obvious level, takes out the stops beyond it, and reverses. Whether you call it a liquidity sweep, a stop hunt or just a failed break, the question is the same: how do you trade it?
What's your approach?
- how you spot the sweep in real time
- whether you fade it or wait for confirmation
- the sweep that was actually a real break and burned you
The support and resistance guide explains why breaks of obvious levels behave this way.
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