🦈 How Retailers Are Eliminated (The Liquidity Hunt)

Sharks know exactly where we place our SL because most retailers learn the same thing: "put your SL just above the high or below the low".

Induction: They create a movement that looks like a bullish breakout to get retailers to buy (like the jump to 0.3162 you saw).

Sweep (Stop Hunt): Once retailers have placed their SL just below or their entries above, the shark makes a violent whip to trigger those orders and take the liquidity.

Reversal: Immediately after "cleaning" the area, the price moves in the opposite direction, leaving retailers out of the game and with losses.

🕸️ 3. How They Use OB to Capture Liquidity

Whales use OB as "traps" in the following way:

Mitigation and Re-testing: The price breaks a level and returns to the OB. Many times, the whale not only touches the OB but also goes through it a bit (looking for a nearby FVG or imbalance) to "clean" out the traders who placed their SL too tight.

OB Failure: If a small timeframe Order Block fails to bounce the price, it becomes a Breaker Block. The whales then use it as a "magnet" to draw the price back and close it in balance.#TradingCommunity