Are institutions plundering retail investors’ liquidity?

First step: “Inducement”—they make the price repeatedly test a point, causing retail investors to think it’s a solid support or resistance.
Second step: “Loss sweeping”—they suddenly step on the gas, break through that point, and trigger all retail investors’ stop-loss orders.
Third step: “Execution”—right when retail investors are frantically stopping out, the institutions carry out large trades in the opposite direction, using retail investors’ stop-loss orders as the counterparty to build positions.
Fourth step: “Expansion”—after completing the position build, the price quickly moves in the opposite direction, and the institutions successfully exit the cost zone.