By Marco BösingWhat Is a Stop Run?
A stop run is a deliberate price move beyond an obvious support or resistance level, designed to trigger stop-loss orders resting at that level. The released liquidity is absorbed by larger market participants, after which price frequently reverses sharply in the opposite direction.
Stop runs occur because large clusters of stop orders accumulate at predictable levels — such as daily lows, session highs and lows, or round numbers. Institutional participants need this liquidity to build or unwind their positions without moving the market excessively.
Recognizing stop runs is a core element of professional trading and is covered in depth within the traMADA NQ Masterclass. The ability to distinguish a stop run from a genuine breakout separates consistently profitable traders from the crowd.