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Orderflow

Everything you need to know about order block 5 RULES | TUTORIALToday we're going to talk about orderblocks. Very simply, an orderblock is the support and resistance of big players. It is stronger and more important than what you draw on a chart expecting a price reaction by classical technical analysis. This works absolutely everywhere in cryptocurrency, forex, and the stock market. I have deduced for myself 5 rules of confirmation, and now we will go over each of them. Let's start with schemes and end with an example on a chart. Orderblock is a candlestick that shows purchases or sales of large capital. When a bullish orderblock is formed, an accumulation or reaccumulation takes place in order to further markup the asset. When a bearish orderblock is formed, a short position is accumulated or reaccumulated. With the purpose of further asset markdown. The first rule is liquidity. We have a zone from which the price gets a reaction and goes in the opposite direction. This forms a support zone for those who trade classic technical analysis. Traders place their orders in this zone, which is what the big capital hunts for. Accordingly, this level is pierced by the flow of orders, which activates these stops. This is how liquidity is removed from the area. The last bearish full-body candle will be our orderblock. It is important that it updates past lows. An analogy would be the wicks of candle, which removes liquidity from past lows. The wick of a candle in this case is an orderblock on a lower TF. The second rule is confirmation After withdrawal of liquidity we expect confirmation of this orderblock - that is absorption and movement in the opposite direction. The confirmation should be impulsive. That is, we should not see how the price is stuck in this confirmation. It concerns the absorption (updating) of the order block. It is possible inside the candle (orderblock). But personally, I try to take the "book variant". Local consolidations can indicate the weakness of the movement. It doesn't mean that the orderblock will not work out in the end, but the probability decreases. The third rule is structure breaking (bos) One of the key points is the breakdown of structure that this orderblock provides. This is how we can understand the mood of the market and the intentions of big capital. In this example, we can highlight the main structure with the yellow line. It is after updating a significant structural element that we can be almost sure of the truth of our orderblock. If we don't see a break in structure, then this movement may just be a correction within a downtrend. So keep an eye on this one. The fourth rule is the law of force (momentum) After confirming our orderblock, we can see a prolonged correction in the OTE (make a Fibo). That is, we should see an impulse and after it a slow sluggish movement downwards, which will also form liquidity behind each local high. This is not a necessary factor, but if it is present, the probability of a trend reversal will increase many times over. The fifth rule - the volume and spread of candles The candlesticks should be full-bodied with increased volumes. It will be important to monitor the "distance" that the price has done. All these factors will also indicate the veracity of the movement. This recommendation concerns more about swing trading, moments when the price is in a trend for a long time without a serious correction and test of the formed order block. Examples on the chart On the daily TF I marked a Sell to Buy move. I marked it this way because there were no warrant blocks to satisfy me on the higher timeframe. This area will act as a zone of interest. The structure on the Hourly TF looks like this. Consequently, we expect a confirmation of our orderblock through a break of the structure. The price entered the sell to buy zone and tested the order block, which was formed from the wick of the candle. We saw an impulse exit and watch the price go up sluggishly, forming liquidity behind each low. Therefore, we expect an orderblock test. I recommend backtesting on chart history to better understand how order block works. Thank you for your attention, I hope it was useful
Education
by Patronofbargain
5
EURCHF SHORT FROM 4H OBEURCHF have been on a down trend for long, we saw an agressive push to the upside but price find it difficult to keep up with the trend, giving a choppy market and creating liquidity zones. We expect price to clear those liquidity to the downside before any further push to the upside. Since the movement is against the current market trend, the OB is the best entry point if price gets there. it also give the best risk: reward ratio happy trading, follow for more analysis
by biokareemnol
Price Action - (Defined Low)We have a defined low that comes in at 681.58 The previous low @ 772.95 was traded below. The sell stops that were protecting those long positions were traded into with this new low (681.51) After this new low was created price action impulsively moved away in bullish momentum, to do what?.... Hit the buy stops that were created @ the previous short term high @ (1031.95) That short term high (1031.95) was traded through eventually (which is highlighted with the shaded circle) and price starts trading higher I'll leave the purple shaded area open for comment, let me know if you see the clues the market left behind! Thank You
FOREXCOM:XAUUSDLong
by EddyOneTake777
Bitcoin Levels to trade and What to expect for the WeekendBYBIT:BTCUSD.P INDEX:BTCUSD BINANCE:BTCUSDT Bitcoin Levels to trade and What to expect for the Weekend I break down the price action from the swing failure pattern at $16000, how I got into a long trade there, where the current levels are to trade and what the scenarios are that could play out over the weekend. Please subscribe and smash the like button if you found value in this video . Not Financial Advice. DYOR. Papertrade before trading with real money. Hope you have a profitable trading day! Shawn
BYBIT:BTCUSD.PLong
by zartraderguy
1
Will Bitcoin hold $16000-Falling knife or Swing failure pattern?CME:BTC1! BTCUSD.P BINANCE:BTCUSDT Will Bitcoin hold $16000-Falling knife or Swing failure pattern? Is taking a long trade here a good idea or will we lose $16K? I look at price action as it happens and what levels to look out for if we lose $16000. If this is a Swing Failure pattern playing out, I explain how I will trade it Not Financial advice Trade with paper money before using real money. Safe trading! Shawn
BYBIT:BTCUSD.P
by zartraderguy
RR > 17 , Risk = 1.2% As I mentioned on my previous analysis, " Way down we go o o o" , that price will definitely loose the bottom of 17K $, I believe that BTC will loose it soon... The large daily Bermuda has worked well till now, rest of lower time frame bermudas below has ruined, and Bitcoin is properly ready for falling to next castle which is on 15K $ ... this short sell position is a tempting opportunity to get something which is 17 times bigger than what ever you risk ...
Short
by AlirezaAzarm
6
EUR/USD likely to fall!Hey tradomaniacs, looks like EUR/USD has just faked out to the upside with a lot of speed and momentum in order to catch liquidity. Overall correlations do not make sense with this move as yields are not falling while indices are just choppy but bearish. Orderflow has shown an instant switch from bulls to bears with this "breakout" which is giving evidence for a fakemove. Be cautious today as market is pretty volatile due to a lack of fundamentals and upcoming holidays in the US. What do you think?
Short
by Trading2ez
3
Institutional Demand: USD/CHF LongHi traders, Starting today off with a detailed watch list session, which showed me several of interesting pairs to look at. This chart, the USD/CHF looks pretty good for a pullback play to the upside, with the dollar being at great value in general. Overall, the DXY has been extremely bullish for the past year and is likely to hold itself together after the weekly and maybe monthly pullback we've been seeing now finally. Trade safe, be patient for the developments at the lower-timeframes. Kind regards, MNieveld
Long
by newcapitalfx
1