Stop runs: the liquidity hunt

Stops pile up at obvious levels: below a low, above a high, at round numbers. Large players push price just far enough to trigger those stops, which gives them the liquidity to enter the other way, and then price reverses. DeepDom helps you anticipate these events with its stop run detection.

The anatomy of a stop run

1. Price approaches an obvious level (low of the day, overnight range).
2. Sweep: it breaks it by a few ticks in a thin zone of the heatmap, triggering the stops. A big spike of bubbles in the color of the sweep.
3. No continuation: liquidity is absorbed just behind it, the delta flips.
4. Rejection: back into the range. Breakout traders are trapped and have to cover: that is the fuel of the opposite move.