Why Your Stop Gets Hit at the Exact Top
Stops placed just past an obvious high are the easiest targets in the market, which is bad news for traders who park them there and a built-in edge for big players who hunt them.
- Price gets pushed just past a well-known resistance level, then reverses hard.
- That spot holds a pool of resting orders: stop-losses plus breakout buys.
- When those orders fire, volume spikes and big players use that burst of liquidity to finish selling.
- Once the pool is drained, there is no fuel left and price drops back down.
- The wick through the level is not a real breakout; it is the market refueling.
Outlook: Expect obvious highs to keep getting swept, so stops set two ticks past the top will keep getting hit before the real move.