TeleportDAO (TST) Stop-Loss Hunt (391% - 657% Growth Potential)

6 oct

The stop-loss hunt event signals the end of the down-move and works to liquidate/activate all the limit sell orders.

When someone buys, say at 100 and places a stop-loss, a limit sell order, at 80; the whales and exchanges make an extra effort to crash the market before letting it run, that is, the bots start to sell since many people are willing to sell for 80 what they bought at 100, thus securing a 20% loss. This is why we do not recommend a stop-loss.

Notice how as soon as the stop-losses are activated, there is a strong reversal above support (orange line). This type of market move is a clear signal that the bottom is in and growth follows next.

This move can be called a bear-trap, false breakdown, stop-loss hunt or liquidity hunt event; the thing is that prices move down just to recover quickly. Notice the high volume to move back above support. And the move up is so strong and so fast that nobody has time to act, +220% in just three candles. If you want to buy back in, you would have to do so at a loss. In this type of scenario, we just wait patiently for prices to recover rather than selling or setting a limit stop-loss.

The good news is that this type of move reveals what comes next. Just like the false breakout on the BNBUSDT chart in mid-2024 revealed the top was in, the false breakdown on this chart reveals the bottom is in.

You can find the targets with potential for growth shown on the chart.

Thank you for reading.

Namaste.