Stop Hunt / Liquidity Sweep — A Simple and Effective Reversal Pattern

[00:02] by the way, it is this guy who most often reverses trends, reverses reverses trends, reverses market phases and ends that very correction. This is a good old stop hunt, also known as VIP liquidity. And liquidity grab,

[00:15] you can see it in different sources . It's essentially the same thing. What is this ? This is a reversal formation after the removal of key liquidity. This also sometimes happens without withdrawing liquidity, by the way . And inside 50% as a trigger

[00:31] area, and areas of firewall gaps, most often of a higher timeframe, that is, for example, 50% of a four-hour firewall gap as a factor in completing the correction of the as a factor in completing the correction of the test of the last aa area of ​​imbalance and

[00:46] continuing to work along the trend. The key criteria for formation is the removal of liquidity by a single swing. Most often , I repeat, this is either a significant

[00:58] extreme for the price or the highest liquidity floor. This can be in the form of liquidity floor. This can be in the form of equals, a or, a, equal highs, equals, a or, a, equal highs, equal lows, or a 50%

[01:12] fair value gap test. And here too there is a footnote, most often of a higher time frame. That is, most often of a higher time frame. That is, the priority will be, and, FVG, I probably won’t write it, it will be clumsy, favolupa, and, from the four-hour

[01:24] clumsy, favolupa, and, from the four-hour timeframe and above. And what happens after this liquidity surge? Firstly, it is worth paying attention to the very Firstly, it is worth paying attention to the very nature of the withdrawal of liquidity. And

[01:37] the key, by the way, is already laid down here in the footnote of CWP liquidity. Because, if you look at it, a swee is the shadow of a candle, that is, it is an impulse absorption. But since you can

[01:50] observe this on different timeframes, the most important thing will be the nature of the most important thing will be the nature of the price reaction after the withdrawal. That is, after removing the key swing or testing the 50% imbalance area, a large

[02:06] amount of imbalance should come in the opposite direction. If we're talking about price action, direction. If we're talking about price action, that is, a candlestick chart, then there's a moment, and after the withdrawal, we should jump back up, or if we're talking about a

[02:20] short, then, of course, we should roll back down even faster than we got there, because this indicates that there was sufficient demand or supply in this area. If we are talking about a long stop-loss, then, of course, the demand

[02:35] that led to the imbalance was towards purchases. Yes, and we should see this clearly on the graph. Friends, an important point. We have a free Telegram channel where we publish educational content on

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[03:17] our Telegram channel. The link to the channel is now on the screen, as well as in the description below this video. Subscribe and let's trade together. Most often it is accompanied by the formation of a failing gap in the direction of the impulse

[03:32] movement. Да, как на данном примере. This is a very good criterion and very good criterion and reliability factor, and the formation of that very stop hunt or, simply put, reversal setup, right? Слом структуры. It is worth

[03:46] noting that a breakdown in the structure can, of course, be internal or external, but what is more important is that a breakdown in the structure will be more reliable precisely by the body of the candle, that is, by consolidation, as in this example, than when the price closes,

[04:02] let's say, here with a shadow, because this is a sign of weakness and another breakdown is possible. Therefore, we are interested in the moment of consolidation of the formation of the value cap as a sign of the existing imbalance towards the opposite

[04:17] side after the excess liquidity or key level. Ah, and this suggests key level. Ah, and this suggests that the market is ready to turn around and a high-probability setup has formed, which we can, uh, monetize with the highest

[04:30] mathematical expectation. Of course, it is worth making a footnote on the context in which the stopkhan is formed . If we talk about the most common . If we talk about the most common occurrence of a stop hunt, then a stop hunt is most often

[04:45] formed at price extremes, that is, for example, after removing a that is, for example, after removing a key maximum or minimum. That is, a stop loss, uh, is formed where either a previous, uh,

[05:00] price extreme is present, or a newly formed extreme is formed, for example, after updating the maximums, yes, and as I said earlier, exactly the same thing can said earlier, exactly the same thing can happen in the, uh, correction phase during a

[05:14] testing gap. And the 50% area will be for you, and, in fact, it will be exactly the level that the price sweeps. and from whom one should expect such a

[05:26] reaction. And the setup is formed only after we received that very reaction. That is, we can assume its formation in advance, but it is worth waiting for its confirmation. Как входить? And entry is most often

[05:40] made on the test of a newly formed currency, which is formed after a liquidity swing and a breakdown of the structure. Stop-loss can be confidently placed after, or rather, beyond, the candlestick's extreme point, which removed

[05:54] liquidity and from which the current reaction began, creating an imbalance. Very reaction began, creating an imbalance. Very often, on different timeframes, you will see exactly the same picture, but without the candlestick removal from the candlestick shadow. In fact,

[06:10] this further enhances your attraction, because the moment of the impulse exit is exactly what is needed for a quality stop hunt to form. Take profit, of course, is set according to the targets that were previously determined,

[06:23] the targets that were previously determined, according to liquidity zones or, aka, fair value, which has not been tested before. We talked about how some significant liquidity is being removed, and subsequently we see an impulse

[06:36] subsequently we see an impulse reaction. Your task is to note that very important liquidity and wait for the reaction that will be formed. Stopkhan is in the moment, and when it has already been formed, then most often a decision needs to be made. This is a

[06:50] fairly fast reversal setup in itself . It is quickly forming and most often you will need to be in a position to monetize it. Therefore, your task is to mark key levels and be able to, in principle,

[07:04] determine them in order to observe its formation.