Introduction
Stop hunts are one of the most important elements of trade execution. They often occur right at or around your point of interest, and they serve a critical purpose—flushing out early buyers or sellers before the real move begins.
Why Stop Hunts Matter
When price runs a short-term high or low, it clears liquidity sitting above or below the market. This creates the conditions for displacement in the opposite direction. By waiting for stop hunts, you avoid getting trapped with the crowd and instead position yourself on the right side of the market.
How to Use Stop Hunts with POIs
Mark your point of interest (POI) on a higher timeframe such as the 1H or 4H.
Drop to a lower timeframe (15M or 5M) once price interacts with that POI.
Wait for the stop hunt—a quick run above a high or below a low.
Confirm with displacement—you must see candle closes that show momentum away from the stop hunt.
Use the breaker formed by the stop hunt as your entry level.
Example 1
A 4H POI sits at relative equal lows.
On the 15M, price runs that low (stop hunt), then shifts upward.
The stop hunt candle becomes your breaker. Once displacement occurs, the retest gives the entry.
Example 2
Hourly buy-side liquidity gets taken.
On the lower timeframe, a stop hunt forms with SMT divergence (NQ makes the high, ES doesn’t).
After displacement, you sell the breaker retest targeting the next low.
Key Notes
Stop hunts should occur at or just after your POI.
If the stop hunt happens before price reaches the POI, that’s fine—as long as displacement confirms direction.
SMT divergence (one market runs a high while another does not) strengthens the setup but isn’t required.
No displacement = no trade.
Final Thoughts
Stop hunts filter out the weakest trades. They prevent you from taking the first reaction into a POI and instead force you to wait for liquidity to be taken and real momentum to kick in. Combined with displacement and your entry model, they add precision and patience to your trading process.