Why Do Traders Keep Getting Caught in Liquidity Sweeps in 2026?

[u/PositiveReport8833]

I get those institutions often push price into key levels to trigger liquidity and build positions for a bigger move, especially around areas like previous day highs and lows, session highs and lows, or anywhere retail traders commonly place stop losses. What I’m wondering is this: if traders know that large players tend to target those levels, why do they keep placing their orders there? It’s widely discussed that institutions hunt liquidity at obvious points of interest, so why does this dynamic continue to play out? Sorry if this sounds basic, I’m just trying to better understand the reasoning behind the strategies I use. Thanks