Can Large Orders Predict Price?

A large order on the DOM is not a prediction of where price will go.

Suppose NQ displays a large resting sell order above the current price.

It might remain and absorb aggressive buying. It might be partially executed. It might also be cancelled before price reaches it.

The displayed order alone doesn't tell me which outcome will happen.

I would pay attention to whether the liquidity remains as price approaches, how much gets executed, and whether the market moves through the level or rejects it.

This is why I avoid building an entire strategy around large order sizes.

The order book is dynamic. Observing the response to liquidity is more informative than assuming a large number guarantees a reversal.