Executive Summary
Stop getting stopped out right before the market goes your way. By understanding where retail stop-losses rest, you can ride the wave with the institutions instead of getting crushed by them.
What is a Liquidity Grab?
Institutions need immense volume to move the market. To buy a massive amount of Gold, they need an equal amount of sellers. Where do they find those sellers? At the stop-losses of retail traders.
When price suddenly wicks below a major support level, triggers everyone's stop-loss, and immediately reverses upward—that is a liquidity grab.
"If you don't know where the liquidity is, you ARE the liquidity."
The 3-Step Strategy
- 1. Identify the Pool: Find obvious Double Tops, Double Bottoms, or Asian Session Highs/Lows.
- 2. Wait for the Sweep: Let the price break that level aggressively, trapping retail breakout traders.
- 3. The Shift: Wait for a 5-minute candle to close rapidly back inside the range. Enter on the retest.