# Stop Hunts and Liquidity: How Buy and Sell Stops Drive Price Moves

- Original post: https://www.twitter.com/i/status/2119325299812778267
- Source account: [@FortuneMMXM](https://x.com/FortuneMMXM)
- Source language: English
- Duration: 1:46
- Published: 2026-11-08
- Canonical URL: https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves

## Transcript

[0:00](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves) The market creates this short-term high and this short-term low.

[0:04](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=4) What rests above that short-term high? If you've taken notes and been paying attention, it's buy stop.

[0:08](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=8) What's resting below this low here? Sell stops.

[0:10](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=10) The market trades down initially and takes out the sell stops.

[0:14](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=14) Why would it do that first? This is inducing shorts, okay?

[0:18](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=18) So it engineers liquidity. Even if the idea is that they wanna take the market down to this level, if it's been consolidating, I like to see them do this type of move here, where it drops down first.

[0:30](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=30) It's kinda like a sucker play. Anybody that has a sell stop below here, they wanna sell on weakness, they're gonna get tricked into the marketplace.

[0:36](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=36) So now they're triggered in short, and then they start doing a run against those traders and against those that were already short from this high.

[0:45](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=45) So what are they doing? The market's being driven higher, and the algorithm's gonna attack that buy stop liquidity pool.

[0:51](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=51) Why would they wanna do that? Number one, it's gonna punish those individuals here that went short.

[0:56](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=56) When it drives a go- above this high here, it sends all those buy stops into market orders, flooding the marketplace.

[1:03](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=63) That gives a huge influx of willing buyers at a high price, which is the perfect counterparty to smart money that wants to sell at a high price.

[1:12](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=72) So when it drives up to here, those buy stops are the counterparty or the other side of a smart money trader that's wanting to go short.

[1:21](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=81) Because they're gonna sell short, they gotta sell it to somebody that wants to buy at a high price.

[1:25](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=85) That's why the market does this. Anytime a significant price move lower is expected, always anticipate some measure of a stop hunt on buy stops or a short-term high being taken out.

[1:36](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=96) Obviously, it's reversed when you're looking for higher prices.

[1:39](https://www.translate.mom/transcript/WafUoctL2dF0/en/stop-hunts-and-liquidity-how-buy-and-sell-stops-drive-price-moves?t=99) Generally, you'll see a short-term low taken out and sell stops taken before you see a very pronounced rally higher