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Order TypesS
Stop Hunt
A market move, often driven by large institutional players, that pushes the price to a level where clusters of stop-loss orders are resting. Once those stops are triggered, the price frequently reverses direction, benefiting the entities that initiated the move.
Example
“Price dipped just below the obvious swing low to trigger a wave of stop-loss orders, then immediately reversed and rallied 3%, confirming it was a classic stop hunt by smart money.”