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The question answered itself already. Candlesticks shows you what has already happened... Meaning that if you read it carefully you can see where big money stepped into the market to cause huge shift and imbalance in price. I said big money because it actually takes alot of money to move price by even half a pip on those major pairs you see. Now when we identify those patters, or orderblock as you wish to call it... The simple assumption is that: If those people used like 10,000 lots to cause price to make that shift via aggressive order... Then they will more likely have another 10,000 lots as passive order sitting at that level and waiting for price to come and fill it and continue in their direction. Because the truth is that most dealing desks don_t place all the orders at once to avoid too much negative slippage. Now when we identify those areas, we and millions of other retail traders will now set our own order there in anticipation that price will come back and fill the remaining passive orders of the big money - and our own order - and continue in that direction. When millions of traders do this what does that mean? More orders sitting at the same level - enough to actually cause price to move in the anticipated direction when and after price fill those orders. That is we see price actually respecting orderblocks atimes - or Atleast from my own knowledge. And also if this is what actually happens then it should be easy for another big money to always invalidate those areas when they know that millions of traders will now set orders there... They simply take the opposite direction which is arguably why order blocks fail atimes too. Anyways I stand to be correct sha. Or you can make clearer the point of your question /argument. End.
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