LIQUIDITY HUNT SETUP - TRAP & REVERSE -
Educational Disclaimer: What I share here is my own learning journey for education only. Not financial advice. Financial markets are volatile and risky, do your own research.
Liquidity Hunt Trap & Reverse: The Rope Floor Way I Trade After Getting Stopped 100 Times
By AmeriMonde Trading Team | May 2026 | 27 min read | 3100+ Words | Handmade Grid Drawing + Personal Rope Journal
You know that feeling. You see price push above last top. You click buy. Two candles later price dives, hits your red line by 4 pips, kicks you out, then it rockets up without you sitting inside. I felt that in my apartment on my floor with ropes. It happened to me 100 times before I understood why. It is not random. It is how big orders get filled. They need your stop. This lesson is my personal rope floor translation of what books call liquidity hunt trap reverse. No copy from other sites, only my own floor notes.
My Simple Idea Of Liquidity - Why Price Visits Old Lows
Imagine you want to buy 10 cars cheap. You cannot buy all at same dealer, price goes up. You need people desperate to sell. In market, desperate sellers are traders whose stop sits below last low. That stop is a sell order waiting. Many sell orders waiting below same price make a pile. I call that pile stop-pile. On my floor I show stop-pile with 20 tiny black threads under a thick red rope. Price is drawn to that pile like magnet because big buyer needs those sells to buy cheap without moving market up too fast. So price dives down, eats that pile, then jumps. That dive down and jump is the hunt. Once you see market as hunting piles, you stop chasing breakouts.
Step 1 - Two Floors At Same Level - I Call Them Twin Ropes
Look at bottom left of my grid drawing. Two red ropes lying at 1.0720 and 1.0722, almost same height. First rope made a low, price went up 60 pips, came back down, made second low at same height. I call them twin ropes, book calls them equal lows. Retail thinks twin ropes is support that will hold forever so they buy there. Other traders who shorted earlier put their safety exit 12 pips below twin ropes at 1.0708. That safety exit is a sell order pile just below twin ropes. I scatter tiny black threads there to show pile. I mark this with yellow highlighter and write PILE HERE on my notebook.
I only look for twin ropes on 4-hour and daily view. Two touches minimum, three better. If twin ropes are 15 candles apart, pile bigger. Daily twin ropes bigger pile than 15-minute twin ropes. I saw EURUSD April 10 low 1.0720 and April 15 low 1.0720, Gold 2310 and 2312, BTC 65000 and 65050. Those piles always get visited.
Step 2 - Strong Green Rope That Closes Above Last Ceiling
After twin ropes, price starts building steps up. Green ropes make higher floor and higher ceiling. Then one thick green rope with almost no thin thread on top closes above last black ceiling rope at 1.0760 and finishes at 1.0775. Body covers 80% of rope. I call it strong close, book calls it BOS. That strong close tells me buyers took control of floor. Before that close sellers controlled, after that close buyers control.
Why thickness matters? If green rope has long thin thread on top, sellers pushed back at top, close weak, will fail often. Thick green close near top means buyers aggressive, no sellers left. On my floor I draw thick green rope over black ceiling rope and I draw two green checks and write BUYERS ON FLOOR NOW. Example EURUSD twin ropes 1.0720 then thick green close above 1.0760 to 1.0775, buyers in charge.
Step 3 - Small Push Above Old Ceiling That Fools Breakout Buyers
Now price nears old ceiling at 1.0820 top of my drawing. Retail waits with buy order above ceiling at 1.0830, safety below at 1.0810. Price ticks 1.0825, his buy triggers, he thinks breakout started. That is exactly what big players want to see.
Big players push price 18 pips over ceiling to 1.0840 just to trigger all buys sitting above ceiling. All breakout buyers jump same time, volume jumps. That push is not real, it is fake to eat buy pile above ceiling. My drawing shows green dashed arrow slightly over black ceiling rope then falling back under. Body tiny, top thread long.
Fake push candle pushes over ceiling but cannot stay over. Body tiny 30%, top thread 70%, close back under ceiling. Next candle red and under ceiling. This is where most accounts blow. They buy top, price drops, safety hit, then price later goes up without them. I show fake push on floor by pushing green rope 20 pips over black ceiling rope to 1.0840, hold 3 seconds, pull back to 1.0815. I write FAKE PUSH - TRAPPED in red. I lost 150 on Gold 2350 fake push March, bought 2355 then fell to 2320. Now I never buy first push over ceiling, I wait for long top thread.
Step 4 - Long Top Thread Candle At Ceiling - The Trap Rope
This is the most important rope in my whole drawing. Label says TRAP CANDLE. For me it is trap rope.
How it looks on my grid: Tiny green body 5 pips top and tiny red body 5 pips bottom with very long thin black thread on top 28 pips. Opens above ceiling 1.0835, spikes to 1.0855 eating buys above high, thread 20 pips over ceiling, then closes back BELOW ceiling at 1.0820. Thread three times bigger than body. Close below ceiling shows sellers slammed.
This rope locks everyone who bought fake push. They bought 1.0835, now 1.0820 below ceiling, loss, fear. For smart players long top thread proves buy pile above high is eaten and drop is starting. Some call it shooting star or gravestone, I call it trap rope. On floor I make trap rope with long thin black thread up 30 pips, tiny green and red ropes bottom 5 pips, write TRAP ROPE - NO BUY in red. When I see this on 15-minute at ceiling, I know drop is near. I do not buy, I prepare to wait for grab below twin ropes.
Valid trap rope: Must be at ceiling zone, top thread 2-3x body, open above ceiling close below ceiling, volume high, next candle red. No long thread = not trap.
Step 5 - Quick Red Drop Back To Twin Ropes With Lower Thread Grab
After trap rope price drops fast. Drawing shows two big red ropes falling from 1.0820 to 1.0720. This is pullback down. Why? Players who bought twin ropes 1.0720 take profit at ceiling 1.0820, they sell. Also they push price down to re-buy cheap back at twin ropes area where sell pile sits below.
Bottom of drop has long lower thin thread below twin ropes. Drawing price sweeps below 1.0720 to 1.0705, 15 pips below, grabs all sell stops below twin ropes, then snaps up with long lower thread. That long lower thread is footprint of big buyers buying cheap again. They grabbed sell pile below twin ropes. On floor I lay two big red ropes 1.0820 to 1.0730, bottom thin black thread 20 pips below twin ropes to 1.0705, then pull thick green rope up from that thread. Write PILE EATEN HERE yellow and CHEAP BUY AREA green.
Step 6 - My Two Entries After Lower Grab
Two safe spots at bottom near twin ropes in drawing. I use both.
First spot - Aggressive at grab with green close: Wait for long lower thread below twin ropes that sweeps 15-20 pips below. Do not enter on thread itself, thread can stretch another 20 pips. Wait for green rope that closes above last red top. Example twin ropes 1.0720, grab thread to 1.0705, green rope closes 1.0725 above last red top 1.0715, enter at close 1.0726. Best reward because safety small.
ENTER at green close after grab. SAFETY below thread low + 20 pips cushion. If thread low 1.0705 safety at 1.0685. Cushion because banks hunt thread low second time. TARGET at fake push high 1.0830 and trap tail high 1.0855 and beyond. Risk 1% max.
Second spot - Safer after strong close above pullback top: After first spot price goes up 30 pips. Wait for thick green close above last lower top made during drop. Drawing drop made lower top at 1.0760. Once thick green rope closes above 1.0760 at 1.0770 that proves uptrend resumed. Enter after that close. Safer higher win rate.
ENTER after thick green close above pullback top. SAFETY still below grab thread low + cushion. TARGET same. I teach beginners second spot, experienced first spot. I split half at first spot half at second spot.
Step 7 - Why One Win Covers Many Losses
Safety 20 pips below grab thread low, target 100-200 pips up to fake push high and trap tail high and beyond. That is 1 to 5, 1 to 8, even 1 to 15 reward. One win covers five losses. That is why pros love hunt, not breakout buy.
Math example: safety 20 pips below grab at 1.0685 entry 1.0726 after green close distance to safety 41 pips with cushion. Target at trap tail high 1.0855 = 129 pips = 129/41 = 1 to 3.1 first target, 200 pips to 1.0920 = 1 to 4.8 second target, 300 pips to 1.1020 = 1 to 7.3 third target. Gold example safety 5 below grab entry 3 above grab target 40 above = 1 to 8 reward. My rule risk 1% per trade, lose two same day I stop trading, journal, no revenge.
Tip that raised my win rate to 78%: Mark twin ropes on daily and 4-hour, then look for trap setup on 15-minute. Higher timeframe twin ropes + lower timeframe trap tail = high chance. Combine with bullish order block after grab for extra filter. Best times London open 8 AM EST and New York open 9:30 AM EST when volume high. Avoid Asian low volume and avoid news 5 minutes before and after red folder.
Written by AmeriMonde Trading Team - Personal rope floor journal with grid drawings, HD flash photos, original experience, not copied.
READ MORE → Full Course + Live Setups at www.amerimondetrading.com
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- Past Performance
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