Why liquidity grabs exist

Big institutions can''t buy or sell at market — there''s simply not enough volume sitting at any single price. They need pools of resting orders to fill against. The biggest pools? Retail stop losses clustered above recent highs and below recent lows.

A liquidity grab — also called a stop hunt, stop run, or sweep — is when price spikes through a known level just far enough to trigger those stops, then immediately reverses.

How to spot a liquidity grab

A real grab has 3 characteristics:

  1. Sharp spike with a long wick — the candle pierces the high/low but closes back inside.
  2. Volume signature — usually a volume burst, then quick fade.
  3. Immediate displacement back — within 1–3 candles, price moves aggressively the other way.

If price breaks the level and holds outside, that''s a real breakout, not a grab.

The grab-and-reverse trade

  1. Identify obvious liquidity — recent swing high/low, equal highs, daily/session high or low.
  2. Wait for the sweep — long upper wick above the high, long lower wick below the low.
  3. Drop to LTF (5M) — look for CHoCH against the spike direction.
  4. Enter on the retracement — into an FVG or OB created by the displacement.
  5. Stop beyond the spike wick.
  6. Target the opposing liquidity pool.

Best liquidity targets on gold

  • Asian range high/low during London open.
  • Previous day high/low during NY open.
  • Equal highs/lows any session (these are magnets).
  • Weekly high/low for swing setups.

Common stop-hunt mistakes

  • Shorting the wick immediately without CHoCH confirmation.
  • Confusing a true breakout with a grab.
  • Stops too tight, getting hunted again on the retest.
  • Trading grabs against HTF bias.

Why this works

Stop hunts aren''t conspiracy — they''re mechanical. Algorithms target liquidity; you can either be the liquidity or trade with the algorithms. The Jenvu Signal Engine flags equal-high/equal-low setups so you know exactly where the next sweep is likely.

FAQ

Are stop hunts legal? Yes. Brokers don''t do them; market structure does.

How far does price wick? Typically 5–20 pips on gold for intraday, more on news.

Confirmation timeframe? 5M CHoCH is the standard.