Order blocks Flashcards
What are order blocks and how is understanding where they are beneficial for us?
They are a significant price level at which large institutional traders place their orders. These blocks help predict market movements.
These blocks represent areas of high liquidity and are oftren targeted by large players in the market.
A bullish order block indicates a zone of strong buying interest that can act as a support level while a bearish order block indicates significant selling pressure, acting as resistance.
Order blocks are formed by large institutional traders like BFIs, and they serve as significant levels in the market. That is their role. The blocks indicate areas where substantial buying or selling activity has occurred which can influence future market movements.
- We need to understand where major market participants have concentrated their orders as this gives us insights into potential price reversals or continuations.
A valid order block generally exhibits aliquidity sweep, showing that large players have accumulated or distributed significant positions.
