do brokers hunt stop loss?

Please I would like to know how true the myth about brokers hunting stop losses is; how true is this?

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@thabokgosi - 7 months ago

I do not think brokers set out to hnt stop loss but institutional traders do. What I mean is that big players like bhedge funds and multinationals also trade forex so they can guess where your stop loss is and place pending orders at that level forcing the market to move in the direction of your stop loss.

On the chart you can see signs of this kind of stop loss hunting with sudden spikes and long wicks that look odd.

For example you see a down trend with moderate wicks, all of a sudden one candle has a very long wick that looks odd and out of place (see image).

To avoid your stop loss being hunted, do not set it at obvious levels such as directly behind a resistance or support level.

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@karbin - 7 months ago

No, brokers or banks don't hunt your stop losses. Maybe this video will help.

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@emma_durban - 1 month ago

Trader Tom is such a good trader, and I like his response.