Kardec Trader shows how to spot big market moves by reading consolidation, volume, and liquidity. When price breaks consolidation and triggers stops before reversing, that's a stop hunt, a sign the market rejected that extreme price and is about to reverse.
I know like ICT traders or Smart Money Concepts will love this one. Let's say we see the market coming down again, we then consolidate here for quite some time and we build volume. This consolidation in this range right here would be safe to say that there's some type of trader looking to accumulate or get into a larger position because you need to do so on periods of consolidation. So in terms of volume, a low or high is formed when there's a lack of liquidity, when there's consolidation, there is a lot of liquidity there. So this is why stop hunts occur is when the market then breaks down and how many traders, traders enter this short when it breaks down, a period of consolidation for the market to eventually rally up and stop them out and then it continues moving up in their direction, or they take the market short here, it breaks out, stops them out, and then eventually reverses on them and they could have made money if they weren't in that stop hunt. These levels of stop hunts essentially are periods of illiquidity or periods of a rejection of a longer time frame. Participants stepping in the market. And this would validate a valid low or a valid high forming in the market. And this is crucial to stop run stop hunts. They indicate, indicate the market is not agreeing with prices being this low. And in terms of an auction, the only way the market could go is the opposite direction to attract other participants as it's moving in that direction.
