Trendline liquidity

Liquidity & Stop Hunts

Diagonal levels pool stops too

A trendline connecting three or more swing lows isn't just a bias tool. Traders place stops just under it. That diagonal line is a liquidity pool that happens to be sloped instead of flat.

The break-and-reclaim trap

Price wicks below a well-respected trendline, panics the crowd out, then snaps back above it within a candle or two. That fake break exists to clear the diagonal pool before the real trend resumes.

Steep trendline breaks aren't automatically bearish

An unsustainably steep trendline will eventually get tagged and broken. That's normal geometry, not a reversal signal on its own. Only treat the break as meaningful if it comes with a real structure shift.