Can someone explain what a "stop hunt" is and how to potentially avoid it?

I’ve come across the term ‘stop hunt’ and I’m not quite sure what it really means.

Is it a tactic that brokers use or just a natural market fluctuation? What are the signs to look for when one occurs?

Price tends to target stop orders before reversing. It acts like a magnet.

Observe key levels. If price breaks support or resistance and then quickly returns, that’s a sign stops are being triggered.

Avoid placing your stops at common levels. Shift them away from round numbers and obvious chart points. This adjustment can save you in the long run.

Stop hunts happen when big players push price temporarily to trigger clusters of stop losses, then quickly reverse direction. I’ve seen this countless times during London open - EUR/USD spikes down to hit stops around major support, then bounces right back.

Most retail traders put stops at obvious spots: round numbers, recent highs/lows, Fibonacci levels. Smart money knows this and exploits it.

To avoid getting caught, I place stops further from these obvious zones. Instead of putting a stop right at 1.1000, I’ll use 1.0985 or 1.0990. Costs extra pips but saves me from fake-out moves.

Watch for sudden volume spikes with quick reversals on lower timeframes - that’s usually a dead giveaway stops got hunted.

This isn’t really a broker thing unless you’re with a bucket shop. It’s mostly institutional players doing this in the real market.

Stop hunts happen, but traders blow them way out of proportion. Yeah, big players push prices to hit stop clusters, but most retail traders just blame stop hunts whenever they lose money. Here’s what actually matters: position sizing. If one stopped trade wrecks your account, you’re risking way too much per trade. I’d rather use wide stops with tiny positions than tight stops that get hit by normal price swings. Timing’s huge too. Fake moves love low liquidity periods and right before major news. Don’t enter trades 30 minutes before big announcements.

Market makers hunt stops because they need liquidity. They’ll push price just far enough to grab those orders.

I started putting my entries where everyone else puts their stops.

Been dealing with stop hunts for years. Best defense? Understanding order flow patterns.

I track where my stops get hit versus where price closes the candle. Real moves keep pushing past your stop. Stop hunts snap back within 1-2 candles.

Timing matters more than most people think. I never set stops during the first 15 minutes of major session overlaps - that’s when liquidity providers are hunting hard.

I use structure breaks as confirmation now. Price hits my stop but doesn’t break the next major level? Probably a hunt. I wait for that secondary confirmation before entering trades near obvious stop zones.

Your broker matters too. Market makers hunt stops way more than ECN brokers since they’re taking the other side of your trade.

Widen your stops and trade smaller position sizes.