Above every swing high lies buyside liquidity, made up from seller stop losses as well as breakout traders’ resting orders (vise versa with lows and sellside liquidity). Smart Money like to run these stops, before sending the market the other way, ruining retails’ trades and amplifying their own profits.
This setup is a strong method to profit from these planned moves, rather than be the traders getting stopped out and handing over their capital beforehand.
Credits - ICT, Inner Circle Trader
