Hey whats up guys,
Today we are going to break down Order Block. This powerful pattern can be used as the level and also as the lower timeframe entry confirmation. We will break down both.
An Order block is the last bullish or bearish candle before a strong market move that signals where institutions placed large orders, often acting as future support or resistance.
Yes, its basically Demand zone, and it will quite often will be in confluence with POC when using market profile.
Not every order block is high probability one. In order to filter out best levels my order block must meet these two conditions:
1. Located at Premium / Discount Level
As we can so on charts below order block which failed is one which had expansion, but not proper dip in to liquidity and not placed in the discount. And thats what makes it weak because institutions need liquidity dip to buy and they don't do it in the premium prices. So No Liquidity raid - No trade and also it has to be in the discount.
2. Must have FVG or IFVG
In order to move market and create a liquidity void - gap. You need quite large money. Only big players can do it. Therefore if there is not gap, its signs that they are not trading and you should not be also. If there is gap within OB it will be strong one.
As mentioned we can use order block as key level from which we can trade or we can use it as entry confirmation - Change in order flow. We use it on the lower timeframe.
Here is correct timeframe alignment's
Monthly OB as Key Level - Daily Order Block entry
Weekly OB as Key Level - H4 Order Block entry
Daily OB as Key Level - H1 Order Block entry
H4 OB as Key Level - M15 Order Block entry
The entry is simple you need
- Pullback in to the discount
- HTF key Level
- LTF OB being created
Once the candles close above / bellow last down / Up close candle or consecutive candles, you enter your position.
Below is few examples of my successful calls before the fact. No hindsight, its working.
Bitcoin - Order Block entry
Bitcoin - Order Block Entry
Dogecoin - Order Block Entry
Palantir - Order Block Mid point entry
Dollar Index - Order Block entry
Don't hesitate to drop any question's. Im always glad to answer.
Follow me for more educational blog posts.
David Perk
Today we are going to break down Order Block. This powerful pattern can be used as the level and also as the lower timeframe entry confirmation. We will break down both.
An Order block is the last bullish or bearish candle before a strong market move that signals where institutions placed large orders, often acting as future support or resistance.
Yes, its basically Demand zone, and it will quite often will be in confluence with POC when using market profile.
Not every order block is high probability one. In order to filter out best levels my order block must meet these two conditions:
1. Located at Premium / Discount Level
As we can so on charts below order block which failed is one which had expansion, but not proper dip in to liquidity and not placed in the discount. And thats what makes it weak because institutions need liquidity dip to buy and they don't do it in the premium prices. So No Liquidity raid - No trade and also it has to be in the discount.
2. Must have FVG or IFVG
In order to move market and create a liquidity void - gap. You need quite large money. Only big players can do it. Therefore if there is not gap, its signs that they are not trading and you should not be also. If there is gap within OB it will be strong one.
As mentioned we can use order block as key level from which we can trade or we can use it as entry confirmation - Change in order flow. We use it on the lower timeframe.
Here is correct timeframe alignment's
Monthly OB as Key Level - Daily Order Block entry
Weekly OB as Key Level - H4 Order Block entry
Daily OB as Key Level - H1 Order Block entry
H4 OB as Key Level - M15 Order Block entry
The entry is simple you need
- Pullback in to the discount
- HTF key Level
- LTF OB being created
Once the candles close above / bellow last down / Up close candle or consecutive candles, you enter your position.
Below is few examples of my successful calls before the fact. No hindsight, its working.
Bitcoin - Order Block entry
Bitcoin - Order Block Entry
Dogecoin - Order Block Entry
Palantir - Order Block Mid point entry
Dollar Index - Order Block entry
Don't hesitate to drop any question's. Im always glad to answer.
Follow me for more educational blog posts.
David Perk
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🟣 Trade Setups
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🟣 Trade Setups
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🟣 Trading Academy
🟣 Trade Setups
🟣 Community
👉 linktr.ee/davidperk
🟣 Trade Setups
🟣 Community
👉 linktr.ee/davidperk
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。