Stop-hunting: fact or venting?

"They ran my stop" is the trader's favourite explanation for losses. The truth is more mundane: obvious stops cluster at obvious levels, and price runs through them because that's what price does at liquidity.

Stop-hunting: fact or venting? — support and resistance diagram
Price bouncing between support and resistance

What's your view?

  • whether your broker or the market is "hunting" stops
  • how you place stops to avoid the obvious clusters
  • the loss you blamed on stop-hunting, honestly reassessed
Stop-hunting: fact or venting? — bid-ask spread diagram
The bid-ask spread on a currency pair

The stop-loss guide explains the clustering dynamics.

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