On this occasion, we will learn how to identify valid institutional candles and how to prevent them to avoid the trap of manipulating market movements so as not to be fooled and misguided in reading trends in forex trading.
What Is Institutional Candle
Basically, Institutional Candles often called order blocks are candles final bullish or bearish after a support and resistance breakout occurs so making the distribution of market prices occur or is called trends. Based on experience, Valid Institutional Candles only formed after the support resistance area or sideway area a breakout has occurred, then the price returns to the sideways zone again that was just broken out, and the price returns to the breakout of the last high or last low, still in the previous sideways area. Or can It be easy to say like this, when the price forms an equal low in the support area then the price moves lower and breaks below equal lows, or support candles have big bodies and deep rejection wicks and the price creates fear value gaps (FVG) or imbalance on the way up and vice versa. This is how not to get trapped by manipulation of breakout support resistance.