A market practice whereby prices are bid up or down on purpose in order to generate stop orders. Professional traders push the price of a stock up (down) crossing normal resistance (or support) levels where stop orders are believed to be placed. When the stop orders are enticed, market orders and/ or limit orders will be triggered. As a result, a rise (or drop) in the price ensues, allowing traders to reverse their positions and ride the stock in the opposite direction.
Breakouts can indicate a stop-running operation: market prices are pushed up in order to run the stops, and then lower moments are offered at the time the buying flurry begins to subside.
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