A stop hunt is an attempt, or alleged attempt, to move prices to levels that trigger other traders’ stop orders. In market commentary, the term often describes a sharp move beyond a familiar high or low followed by a reversal, even when deliberate targeting has not been established.
How stop orders can amplify moves
Stops may cluster near obvious chart levels. Triggered sell stops can add selling pressure below support, while buy stops protecting short positions can add buying pressure above resistance. This additional order flow may extend the move before it reverses or continues.
A stop-market order submits a market order when triggered and can suffer slippage. A stop-limit order instead submits a limit order and may remain unfilled. A stop being triggered is also different from an exchange liquidating a leveraged position for insufficient collateral.
Evidence and risk
Suppose a stop triggers at 98, price reaches 97, and then rebounds to 100. That sequence alone does not prove someone hunted the order. News, normal volatility, or reduced market depth can produce the same result.
Assessing intent requires evidence beyond a candle pattern. Wider stops can increase the loss on an unchanged position, while removing stops does not remove market risk. No placement guarantees that ordinary fluctuations or sharp moves will leave a stop untouched.