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Stop hunt guide

August 6, 2023

Stop hunt

In forex trading, a 'stop hunt' is when large traders, like market makers or institutions, force the market price to shift against smaller traders. They do this to hit the smaller traders' stop loss orders and make them exit their positions at a loss.

Stop loss orders are a safety net used by traders. If the currency price falls to a certain level, the stop loss order automatically ends the trade to limit the loss.

Big traders with lots of money can manipulate the market. They push the currency price to where most stop loss orders are, triggering a selling rush that lowers the price even more. They then buy at this lower price and profit when the price goes up again.

Stop hunts often happen when there's low market activity. This makes it easier for big traders to manipulate the price. For instance, they often occur before news announcements or when major markets are closed during the Asian trading session.

Stop hunt inside an Order Block

How to enable the stop hunt feature?

Step 1: head over to the SMC Settings

To enable the stop hunt feature simply head over to the indicator settings.

Step 2: Enable the stop hunt featue.

When you are inside the SMC settings - locate the liquidity section and make sure to check the stop hunts box.

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