Order Flow Liquidity Hunting (Liquidity Grab / Wyckoff Spring)



Logical Explanation: Large funds (whales) need to trigger retail stop-loss orders below support levels through rapid declines before pushing the price higher, thereby acquiring enough "long position" liquidity.

* Detailed Steps:

* Identify consolidation zones: Find a clear sideways bottom.

* Wait for "digging a pit": The price suddenly breaks below support, appearing to crash, but trading volume is huge and quickly recovers within the range.

* Entry: Go long immediately when the price reclaims above the support level.

* Stop-loss: Set at the lowest point of that "pit."

Case Study:

BTC is oscillating around 60,000, with everyone placing stops at 59,500. Suddenly, the price spikes down to 58,800, then pulls back to 60,200 within 5 minutes.

* Action: Enter the trade instantly on the pullback to 60,000.

* Result: This "fake drop" clears out leverage, often followed by a smooth one-sided rally. $BTC $ETH
BTC-0.27%
ETH-0.48%
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