Hunting for stops.
- Buy Side Liquidity (BSL): Stops sitting above old highs.
- Sell Side Liquidity (SSL): Stops sitting below old lows.
- Stop Run: A fast move designed to trigger these orders.
Equal Highs and Lows.
Retail textbooks teach that the more times a level is touched, the stronger it is. In reality, every touch creates a 'clean' line where more and more traders place their stops.
These 'Equal Highs' (EQH) or 'Equal Lows' (EQL) act as magnets. The market will often move toward them specifically to 'clear' that liquidity before starting a real move.
The Sweep-and-Reverse setup.
The highest probability trade is not buying at support, but buying *after* support has been swept. Look for a quick wick below a low, followed by a strong close back above the low.
This signal indicates that the 'weak hands' have been shaken out and the path of least resistance is now in the opposite direction.
Patience and the 3% floor.
Many prop firm traders fail because they enter 'early' at support and get swept. By changing your mindset to wait for the sweep to occur first, you dramatically increase your win rate.
Protecting your daily drawdown means avoiding 'front-running' levels. Let the market show you that it has finished hunting before you commit your risk.