Smart Money and Stop Hunt Psychology Retail traders place stops around obvious levels — equal highs, round numbers, trendlines. Smart Money exploits this by using stop hunts to trap momentum traders and absorb liquidity. Here’s how it works: 1. Price builds a structure (e.g., double top) 2. Retail shorts it early, placing stops above 3. Smart Money drives price into those stops → grabs liquidity 4. Reverses sharply from a hidden OB or FVG To profit: Expect the hunt — don't get faked Wait for liquidity sweep + CHoCH Enter on the return to OB/FVG, not the sweep itself This tactic isn’t manipulation — it’s the system. Liquidity fuels every trade. If you know where stops are, you know where price is drawn toward before real moves begin. Learn to see stop hunts not as danger — but as entry invitations from Smart Money itself. #CommunityAMA