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Why price reacts to s&d zones before breaking them

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FX_IDC:JPYUSD   Japanese Yen / U.S. Dollar
Why price reacts to s&d zones before breaking them.

We tend to see a reaction for one simple reason;
- BFI's need liquidity to accumulate a sizable position.
So, how would a reaction provide them with this liquidity?
- Retail traders will enter aggressively at these s&d zones
expecting price to move away from them. Now, BFI's will
use all this liquidity to accumulate a sizable position,
targeting the next pool of liquidity which is
retail's stop-losses on the opposite side of the zone.


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