I have been trying to find out the reason for price movement and it lead me to order flow and market structure which I now understand to a certain level but knowing how price moves, (market orders consuming liquidity).
I don't understand why a trade(limit order to buy or sell) would be placed at a previous supply or demand level? Orders could be stacked there all day but limit orders don't cause price to move in any direction, market orders do?
So shouldn't a trader be looking to jump on a momentum candle to ride it to the next stop of liquidity?
Can someone shed light on this for me?
I don't understand why a trade(limit order to buy or sell) would be placed at a previous supply or demand level? Orders could be stacked there all day but limit orders don't cause price to move in any direction, market orders do?
So shouldn't a trader be looking to jump on a momentum candle to ride it to the next stop of liquidity?
Can someone shed light on this for me?
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