Updated · first published
What is Stop-run detection?
A stop run (or stop hunt) is a fast sweep of liquidity beyond an obvious level, designed to trigger the stops piled there, then often reverse. Retail gets stopped out at the worst moment; big players collect the liquidity thus released.
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What DeepCharts does better
DeepDom's stop-run detection leans on MBO data to tell a genuine liquidity sweep from a mere move: you see orders consumed all at once beyond the level, then the lack of follow-through. That data-based read, rather than an impression, is what few tools offer, and what lets you fade rather than suffer.
Using it day to day
Day to day, spot the obvious stop zones (below a recent low, above a range high) and watch for the sweep. A confirmed stop run, followed by a rejection, offers an entry against the crowd, with a stop on the other side of the sweep. Common around opens and round numbers.
Example: the FDAX dives sharply below the morning low, sell stops trigger, but the flow doesn't follow, no aggressive selling behind, the liquidity is absorbed. Price moves back above the level: it was a stop hunt, and the buy entry on the rejection was the right side.
⚠ The trap to avoid
The trap: seeing stop runs everywhere. Not every break is a trap: some are genuine breaks. The difference reads in the flow: a real stop run has no aggressive follow-through and reverses fast; a genuine break comes with continued aggression.
Combine it with
Combine it with the heatmap (where the liquidity to sweep sits), the Iceberg Detector (who absorbs the sweep) and delta (the lack of follow-through): together they tell the trap from the genuine break.
FAQ
What is a stop run?+
A fast sweep of liquidity beyond an obvious level, triggering the piled-up stops then often reversing. Retail gets stopped out, big players collect the liquidity.
How does DeepCharts detect stop runs?+
Via MBO data: you see orders consumed all at once beyond the level, then the lack of aggressive follow-through, the signature of a sweep rather than a genuine break.
How do I trade a stop run?+
By waiting for confirmation: sweep then rejection, with no aggressive follow-through. Entry is against the crowd that got stopped out, with a stop on the other side of the sweep. Always with context.
Why are stops so predictable?+
Because most traders place their stops at the same obvious spots: below the low, above the high, at round numbers. That clustering creates liquidity pockets the market reaches for.
Where should you place your stop to avoid a stop run?+
Beyond the obvious liquidity zone, not right at it. Give your stop room so a sweep doesn't take you out before your scenario plays out.
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