Why is it being done to me?
That beard isn’t an accident. It’s growing to hunt you.
That wasn’t a coincidence. The places where stop orders cluster are targeted.
In gold charts, have you ever experienced this? The moment you’re stopped out, the price leaves a long wick and reverses to its original direction. “If I hadn’t stopped out there, I could have won”—this frustrating experience is commonplace with gold.
Most people dismiss this as “bad luck.” But it isn’t.That wick isn’t a coincidence; it’s the result of the place where stop orders converge being targetedin many cases. If you understand the true nature of the wick, you can reduce how often you’re hunted.
This time, we will explain the mechanism of the frequently occurring “wig stop hunting” in gold and the countermeasures.
Why do wicks grow in specific places
There is a clear reason why wicks tend to extend at certain levels. That reason isbecause stop orders are concentrated there.
Many traders place stops in similar spots. Just above the most recent high, just below the most recent low, or at a round-number price. At these “clear places,” a large amount of stop orders accumulate. And when those stop orders are filled, they turn into opposite trades. A stop on a long position becomes a sell order, and a stop on a short position becomes a buy order.
When price touches the level where those stops have gathered, stops trigger one after another, and orders flood in all at once. In this chain reaction, price moves rapidly in that direction for a moment. This is the true nature of the long wick.Stops beget stops, and price jumps momentarilyas a result.
・Just above the most recent high (buy stops = sell orders accumulate)
・Just below the most recent low (sell stops = buy orders accumulate)
・At round numbers (psychological milestones where orders concentrate)
・Near obvious lines (everyone is watching the same level)
“The place where everyone places stops” is the most vulnerable to being hunted.