ORDER BLOCK CONFIRMATION ENTRY PART 2Sure! Here's another description of order block confirmation with a focus on practical application and detailed examples:
### Understanding Order Block Confirmation:
Order block confirmation is a technique used by traders to identify and validate significant price levels where large orders from institutional traders have been placed. These levels often act as strong support or resistance zones. Confirming an order block helps traders make informed decisions about entry and exit points in the market.
### Detailed Steps for Order Block Confirmation:
1. **Identify Potential Order Blocks:**
- **Bullish Order Block:** Look for a downtrend that ends with a strong bullish reversal, marked by one or more large bullish candlesticks.
- **Bearish Order Block:** Look for an uptrend that ends with a strong bearish reversal, identified by one or more large bearish candlesticks.
2. **Analyze Market Structure:**
- **Trend Context:** Determine whether the market is in an uptrend, downtrend, or sideways movement. This context helps in predicting the likelihood of the order block holding.
- **Key Levels:** Note the order block's alignment with significant support or resistance levels.
3. **Volume Analysis:**
- High volume during the formation of the order block is a strong indicator of institutional activity. Look for volume spikes that coincide with the large candlesticks forming the order block.
4. **Price Action Confirmation:**
- **Engulfing Patterns:** A bullish engulfing pattern at a potential bullish order block or a bearish engulfing pattern at a potential bearish order block can confirm the level.
- **Pin Bars and Rejection Candlesticks:** Candlesticks with long wicks (e.g., pin bars, hammers, shooting stars) at the order block level indicate strong rejection and confirm the presence of significant buying or selling interest.
- **Break and Retest:** Confirmation is stronger if the price breaks through the order block level and then retests it as support (for bullish order blocks) or resistance (for bearish order blocks).
5. **Indicator Confirmation:**
- **RSI (Relative Strength Index):** If the RSI shows overbought conditions at a bearish order block or oversold conditions at a bullish order block, it provides additional confirmation.
- **Moving Averages:** The interaction of price with moving averages (e.g., 50 EMA, 200 EMA) near the order block level can confirm its validity. A bounce off or crossover can be significant.
6. **Confluence of Factors:**
- Multiple confirmations such as Fibonacci retracement levels, pivot points, and trend lines aligning with the order block increase its reliability.
### Practical Examples:
1. **Bullish Order Block Confirmation:**
- Suppose the price of a stock is in a downtrend and reaches a level where it forms a large bullish candlestick, followed by increased volume.
- The RSI indicates oversold conditions.
- The price breaks above the identified order block and later retests this level, forming a bullish pin bar.
- This confluence of signals confirms the bullish order block, suggesting a potential entry point for a long position.
2. **Bearish Order Block Confirmation:**
- Consider a forex pair in an uptrend that hits a resistance level, forming a large bearish candlestick with a volume spike.
- The RSI shows overbought conditions.
- The price breaks below the identified order block and retests it, forming a bearish engulfing pattern.
- This setup confirms the bearish order block, indicating a potential entry point for a short position.
### Trade Execution and Management:
1. **Entry:** Based on the confirmed order block, place a buy order at the bullish order block or a sell order at the bearish order block.
2. **Stop-Loss:** Set stop-loss orders just below the bullish order block or above the bearish order block to manage risk.
3. **Take Profit:** Identify potential take-profit levels based on historical price action, nearby support/resistance levels, or using risk-reward ratios.
By following these detailed steps and examples, traders can effectively use order block confirmation to enhance their trading strategies and improve their chances of successful trades.
Orderblockanalysis
ASXAUD Australia 200 Bearish Opportunity - SMC FVG Order BlockASXAUD Australia 200 (ASX 200) Bearish Trade Setup - Potential Reversal at SMC FVG Order Block
🔍 Technical Analysis:
The ASX 200 is approaching a critical zone on the chart known as the SMC (Smart Money Concept) FVG (Fresh Virginal Ground) Order Block.
Historical price action suggests that this area has served as a strong resistance level in the past.
Key technical indicators may be signaling potential bearish momentum.
📊 Trade Plan:
Entry Point: Consider initiating a bearish position upon a clear rejection or bearish candlestick pattern within the SMC FVG Order Block.
Stop Loss: Place a stop loss above the recent swing high to manage risk effectively.
Take Profit: Target potential support levels or previous swing lows as profit objectives.
🚨 Risk Management:
Implement proper risk management strategies, risking only a small percentage of your trading capital on this trade.
Stay informed about economic events that might impact the ASX 200 and adjust your position accordingly.
📈 Disclaimer:
This is not financial advice. Trading involves risk, and it's essential to conduct your own analysis. Trade responsibly, using only the capital you can afford to lose. Set stop-loss orders and manage risk diligently.
👉 Note: Regularly monitor the charts for real-time price action and adjust your strategy based on market conditions.
Happy Trading! 🌐💹
ICT Order Block Trading Strategy : Asian Session Liquidity SweepASIAN Session Liquidity Sweep Model
Mark High and Low created in Asian Session.
1. Upon starting of London Session it sweep Asian Session liquidity and closed price below Asian Session High.
2. Created Bearish OB.
3. Sell side imbalance in form of FVG.
So we have three confluences
i.e. Liquidity Sweep + OB + FVG
Remember these three are confirmation for trend or break out direction.
Smart Trading For EURUSD 1h When you look at a one-hour timeframe chart of the EUR/USD currency pair, you see a large number of order blocks, and for each one, with proper planning and observing Wyckoff patterns, you can create a good plan. Sometimes, due to rapid growth or decline and not recognizing the pattern, we don't enter into these types of positions. So, recognizing the Wyckoff pattern significantly helps us trade in the right direction.
Yes, recognizing Wyckoff patterns and proper planning can help you trade more effectively and confidently in the EUR/USD market. Wyckoff patterns identify price and volume patterns in the market and allow you to determine the optimal timing for entering or exiting a trade.
Recognizing Wyckoff patterns can help you identify stronger entry and exit points in the EUR/USD market and prevent faulty analysis or trading mistakes. By focusing on price patterns, volume, and price changes, you can identify both common and uncommon patterns and have a better understanding of the market.
However, it's important to acquire sufficient study and education to effectively use Wyckoff patterns, correctly identify them, and have a comprehensive understanding of market behavior and technical tools in the EUR/USD market. Additionally, skill and experience in trading are of great importance.
Before using Wyckoff patterns in trading EUR/USD, it's advisable to familiarize yourself with your own strategy and utilize reputable resources to learn about patterns and related concepts. Additionally, always be cautious and base your trading decisions on your personal analysis and understanding of the EUR/USD market, as there is no guaranteed strategy or pattern for profitability in the financial market.
GBPUSD Possible seeing a Bearish push lower
As you can clearly see from the chart:
-Price reacted to the weekly Swing High and created a change of Character ( ChoCh), Which left an Orderblock (OB).
- Price came back to mitigate the OB after sweeping the trendline liquidity ( $$$)
-We would probably see price dropping lower to fill in the fair value gab( FVG).
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What is OrderBlock ⁉️ ‼️ Order Blocks are candles where Market Makers (Banks) have placed their positions, generally, the market returns to those candles and they are never violated.
There're 2 types of Order Blocks:
1. The Bullish Order Block is the last bearish candle before the bullish movement, that Break The Market Structure Higher. Represents a high possibility of holding the price, when the price returns to it.
2. The Bearish Order Block is the last bullish candle before the bearish movement, that Break The Market Structure Lower. Represents a high possibility of holding the price, when the price returns to it.
⁉️ What is OrderBlock? ‼️ Order Blocks are candles where Market Makers (Banks) have placed their positions, generally, the market returns to those candles and they are never violated.
There're 2 types of Order Blocks:
1. The Bullish Order Block is the last bearish candle before the bullish movement, that Break The Market Structure Higher. Represents a high possibility of holding the price, when the price returns to it.
2. The Bearish Order Block is the last bullish candle before the bearish movement, that Break The Market Structure Lower. Represents a high possibility of holding the price, when the price returns to it.
Possible Idea for Short and Long ETH/USDTThis is another test of an idea using order blocks. Bearish and Bullish Order Blocks are marked. Think Ethereum must correct more before going up too much more or it will be an epic failure. I would never buy Ethereum at this price so why would most other people? For this uptrend to be resumed iit needs to finish the correction. Here is kind of how I see it playing out. I was looking at the locations of the order blocks and this is what I cane up with. Those two lines are very old and seems to be important here. Since the top trend line has been a point of rejection multiple times, it seems to me that its a good place to short to the bullish OB. Those line were there from way earlier when I was finding where another breakdown was going to occur. You should be able to see the origins. So shorting to the Bullish OB makes sense. Then longing there to the next high and use TP using the VP. There is the potential that it could go straight down through the block and continue further,
It could also just got to the order block from where it is now, if so missed trade not a big deal. Again, this is just an idea/experiment part of a series of tests I am working on for a new strategy and possible indicator.
I am using many other thing besides this to design this trade idea. I use a MM Matrix, Live Order Book data, Liquidation Levels, Volume Analysis, Foot print charts and a different charting software. I have done my best to get the data here and make it work on time based charts but I work more with range charts I am not trading this just seeing how it plays out. I have a fair amount of confidence it will be close to how it goes. One or both trades should work out. I would have larger stop losses myself but these make sense if my idea is remotely correct.
-NFA, Not live trade I am doing, experimental trade but think concept is sound. Lets see. If you haven't noticed I am in search of something different. I hate following so I always look for different things or opportunities. Some work, many don't. I still trade my regular trades but am just posting these for feedback and heck maybe someone sees something they like and it makes them good profits. I certainly hope it helps someone.
Long Term SELL on USDCHFMarket bought corrective into Monthly OB for a retest. Also, we have psychological level 1.0000 at this OB. We are also seeing trendline confluence supporting our Sell bias.
Market could fall to 0.9000. We should also take note of how price reacts with the lower trendline of the inside channel.
*** This is just my opinion. It doesn't serve as financial advice ***
EURUSD 4 - HOUR ORDER BLOCK MADNESSHi Traders,
Today, I want to go over two trades that I took.
These were short positions on the 4-hour Time Frame.
Both of these positions were based on Order-block entries.
Once I identified my Order-blocks, I waited for the price to retrace back into my retrace zone ( The green box on the chart )
When the price retraced into that zone, my short positions were opened.
My targets previously were the price structures below.
The Risk/Reward was 1 / 4
I only enter these types of trades if the price does indeed close below previous support.
NB ONLY if price closes below previous support.
These OB positions are lovely when they show up.
Clean, simple, and easy to see.
There is no reason to make your trading complicated. Keep it simple!
Enjoy the video below for a clearer explanation.
See you all on the next one,
The Vortex Trader
⁉️ How to identify orderblocks? ‼️ Order Blocks are candles where Market Makers (Banks) have placed their positions, generally, the market returns to those candles and they are never violated.
There're 2 types of Order Blocks:
1. The Bullish Order Block is the last bearish candle before the bullish movement, that Break The Market Structure Higher. Represents a high possibility of holding the price, when the price returns to it.
2. The Bearish Order Block is the last bullish candle before the bearish movement, that Break The Market Structure Lower. Represents a high possibility of holding the price, when the price returns to it.
VLXUSDT wants the new liquidity for a new bullish impulseThe price had an impulse after my previous analysis and now the price is testing again the dynamic support on the daily timeframe.
On the weekly timeframe, the price is going to create a triple bottom on 0.2$.
the price has a Demand cluster of 0.20, and we could see a spike on it in order to grab new liquidity for the new bullish impulse
How to approach?
We are monitoring the price, the price could have a bounce on the weekly dynamic support and get liquidity for the new breakout from the daily resistance on 0.23$
According to Plancton's strategy , we can set a nice order
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Keep in mind.
🟣 Purple structure -> Monthly structure.
🔴 Red structure -> Weekly structure.
🔵 Blue structure -> Daily structure.
🟡 Yellow structure -> 4h structure.
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Follow the Shrimp 🦐1
NAS100 TRADE IDEA FOR NEXT WEEKAs we can see, price has already come down and tapped into Fridays low and bounced up. Waiting for price to come down and mitigate the imbalance created in the market and then tap into the order block. This is when I will take my buy entry (stop loss just below the order block) - the first target would last week Fridays high and the final target would be the previous weekly high - looking to take out all the liquidity that was created on the drop on Friday.