@rainbowharmony
Large buy or sell orders create significant levels of support and resistance in the order book. A large buy order near a certain price level can act as support, suggesting that the price may not drop further due to strong demand at that level. Similarly, a large sell order at a higher price acts as resistance, making it more difficult for the price to rise. If these large orders are absorbed by market activity, it may indicate that the price will break through the support or resistance level, triggering a breakout or breakdown. Traders use this data to anticipate price movements and adjust their strategies.
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