Where the stops hide

Liquidity concentrates where stops pile up, and large players need that liquidity to execute. Knowing where the stops are means knowing where the market will go looking for fuel.

The classic stop zones

• Beyond the obvious highs and lows: swing, daily, overnight. The more visible the level, the more stops behind it.
• Below or above round numbers: 19,900, 20,000. Retail likes round numbers, for stops as much as for targets.
• Around the opening range and yesterday's high and low: the levels everyone draws.
• Under a trend: trailing stops line up along the line, and every pullback triggers a cluster of them.