Wicks and stop hunts
The candle that touches your stop and comes right back.
The candle that touches your stop and comes back. A wick is a fast move that reverses inside the candle. It leaves a thin line on the chart, and a filled stop loss.
Body, then wick. The body is where price settled. The wick is where it went and could not stay. Your stop does not know the difference.
Stops cluster at obvious levels. Round numbers, yesterday's low, just under support. Big orders push price there, fill against the stops, and reverse.
It is not personal. It is liquidity. A stop is a market order waiting to happen. Thousands of them in one spot are a pool worth driving into.
Wider stop, smaller size. Give the trade room past the obvious level. Then shrink the position so the wider stop costs the same dollars.
Where is the risk?
The fix.
Place the stop. SOL long at $186. Support is $180, a round number everyone sees. Buy means stop at $180 with a $500 position, skip means stop at $178.50 with $400, sell means close now.
Wicks and stop hunts · 3 min
The candle that touches your stop and comes back.
A wick is a fast move that reverses inside the candle. It leaves a thin line on the chart, and a filled stop loss.
Coach Bobby says:Wicks love round numbers. Give your stop a little room to breathe.
Go deeper
A resting stop loss becomes a market order the moment it triggers, so a cluster of stops at a round number or just under support is a pool of guaranteed sells. Large traders push price into that pool, fill their buys against the stops, and the price recovers, leaving a long wick and a lot of stopped-out longs. The fix is not to trade without a stop; it is to place the stop past the obvious level and reduce size so the dollar risk stays the same.