Stop Runs: Why the Market Targets Your Protective Orders
Stop runs happen when the market deliberately pushes through obvious highs or lows to trigger stops sitting behind them. It’s not manipulation — it’s how liquidity works. The market needs fuel, and your stop is fuel.
Why Stops Are Natural Targets
Stops cluster in predictable places:
- above swing highs
- below swing lows
- right outside consolidation ranges
- under/over round numbers
This lines up directly with Liquidity Pools, because stops *are* liquidity pools.
What a Stop Run Actually Is
Forget the conspiracy stuff. A stop run is simply:
Price moving into a cluster of resting stop orders to grab liquidity.
| Event | What Happens |
|---|---|
| Stop orders get triggered | Becomes market orders that add volume |
| Market absorbs the flow | Fuel for either continuation or reversal |
| Liquidity gets cleared | Price often reacts violently afterward |
How Stop Runs Look in Real Time
You’ll often see:
- a sharp spike into an obvious level
- a burst of volume the second it breaks
- a quick snap back or explosive continuation
- a bunch of trapped traders complaining on social media
This behavior matches Price Magnets, because magnets often form around stop-rich zones.
Continuation Stop Runs vs Reversal Stop Runs
1. Continuation Run
Stops fuel the trend. Market clears the level, finds more buyers, and keeps running.
2. Reversal Run
Stops fuel a reversal. Market clears the level, absorbs the liquidity, then snaps back in the original direction.
The Traps Traders Fall Into
- setting stops in obvious places
- buying breakouts right into liquidity
- fading before the run finishes
- assuming “manipulation” instead of understanding the mechanics
How to Avoid Getting Hit
1. Don’t put stops where everyone else does
If your stop is obvious, it’s fuel.
2. Wait for the run, then trade the reaction
The real edge is after the stops trigger.
3. Learn to read liquidity behavior
Combining this with Hidden Liquidity gives you actual control over your entries.
The Bottom Line
Stop runs aren’t manipulation — they’re the natural process of the market collecting liquidity. If you understand how they work, you stop being the target and start trading the reaction like a professional.