Right, so what you said makes sense in theory but it is taking me a bit of time to digest the above in terms of how it would actually look like in practice. What I have done is I've had a look at the charts and tried seeing things from the other side where this stop hunting could be applied in practice. I have come across one chart where it makes sense. Kind of..

I've got a few shadows (marked in yellow) under which a lot of people in long positions would have placed their stops (roughly where the red line is). Blue bubble is then the time, based on your description, when the order to short could be placed (again, where the red line is). When the price drops to this assumed stop level (the first big red candle outside of the blue bubble) there is a momentum to the downside because stop losses are being activated. My order to short is filled and the only thing left for me to figure out is where to close the trade (Not sure I am using the correct terminology but trailing stop is probably the right thing to do here?).

Am I thinking in the right direction?