E-Book Gift + TRADABLE VS NON-TRADABLE ORDER BLOCKS
Updated
ABBREVIATIONS & DEFINATIONS
ORDER BLOCK [OB]
OB is a Down/Up Candle at/near Support or Resistance before the move Up/Down, respectively.
Down Candle is a Bearish Candle
Up Candle is a Bullish Candle
Bullish Order Block [BuOB] is Down candle at/near Support level, before the move up
Bearish Order Block [BeOB] is Up Candle at/near the Resistance level, before the move down
IMBALANCE [IMB]
This is Insufficient Trading in the market. Sometimes called Liquidity Void [LV].
When there is insufficient trading in the market, the price often comes back to fill out the orders
that were left.
Imbalance is created by 2-3 or more Extended Range Candles [ERC]
ERC candle often closes at 80% of the candle range
Assumptions;
When the Market Maker [MM] want to move price up at a certain level, it is assumed that, there should
be enough sell orders to pair their buy orders with (this is how they make profit).
So, when the MM moves away from a given level with strength and magnitude, leaving behind a LV
(IMB), we can use this to assume that sell orders that were available at that level were not enough to pair
with their Buy Orders.
Therefore, the MM will, often, come back at this level for mitigation
MITIGATION
Mitigation means; to reduce risk.
When the MM moves price away from a level with strength and magnitude, say they are buying; it is
assumed that this is used to entice retail traders to join the move.
And because most retail traders are price chasers, they join the ride with their Stop Loses [SL] set. This is
the reason (assumed) that the MM will come back to clear retail traders SL. When their (Retail Traders)
SL are hit, they are knocked out of the move, hence MM mitigating their risk (THEY WILL RESUME
THE INITIAL TREND HENCE MOVING ALONE).
you can download that E-book from below URL
ORDER BLOCK [OB]
OB is a Down/Up Candle at/near Support or Resistance before the move Up/Down, respectively.
Down Candle is a Bearish Candle
Up Candle is a Bullish Candle
Bullish Order Block [BuOB] is Down candle at/near Support level, before the move up
Bearish Order Block [BeOB] is Up Candle at/near the Resistance level, before the move down
IMBALANCE [IMB]
This is Insufficient Trading in the market. Sometimes called Liquidity Void [LV].
When there is insufficient trading in the market, the price often comes back to fill out the orders
that were left.
Imbalance is created by 2-3 or more Extended Range Candles [ERC]
ERC candle often closes at 80% of the candle range
Assumptions;
When the Market Maker [MM] want to move price up at a certain level, it is assumed that, there should
be enough sell orders to pair their buy orders with (this is how they make profit).
So, when the MM moves away from a given level with strength and magnitude, leaving behind a LV
(IMB), we can use this to assume that sell orders that were available at that level were not enough to pair
with their Buy Orders.
Therefore, the MM will, often, come back at this level for mitigation
MITIGATION
Mitigation means; to reduce risk.
When the MM moves price away from a level with strength and magnitude, say they are buying; it is
assumed that this is used to entice retail traders to join the move.
And because most retail traders are price chasers, they join the ride with their Stop Loses [SL] set. This is
the reason (assumed) that the MM will come back to clear retail traders SL. When their (Retail Traders)
SL are hit, they are knocked out of the move, hence MM mitigating their risk (THEY WILL RESUME
THE INITIAL TREND HENCE MOVING ALONE).
you can download that E-book from below URL
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