BEST ORDER BLOCKS Explained! SUPER Order Block Trading Strategy THIS is GAME CHANGER for DAY TRADERS - YouTube

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today we are going to learn everything
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about the best order blocks and how to
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trade order blocks from a to z
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what is an order block how to identify
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order blocks how to draw supply and
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demand zones from the order blocks order
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block or not analyzing special
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structures
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what makes an order block a high or low
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quality order block 6 k points
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my ideal super order blocks
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three different entry types from order
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block demand and supply areas including
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day trading and scoping
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this will be our technical video in our
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next video we'll go over the best order
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block trading examples
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wow we have so much to cover okay before
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we start you should be watching all the
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videos in the price action trading
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playlist because i'm creating videos in
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order i'll use terms like msp or b and
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bb
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so it's impossible to explain these
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terms again and again
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in each video please watch the playlist
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thank you if you're ready let's start
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now what is an order block it's the
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accumulation of orders from the market
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makers
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let's understand the idea
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assume an institutional bank wants to
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buy bitcoin which is worth like a
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hundred million dollars
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if they buy it at once they will disturb
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the market by causing huge price
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moves
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so instead they will split the money
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into small chunks like 20 million
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dollars and buy it slowly without
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disturbing the markets
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it is believed that order blocks are
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these buy or sell supply and demand
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areas where market makers orders are
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piled up most of these price action
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concepts are created by ict inner circle
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trader let's start with the bullish
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order block i'll explain it step by step
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again you already know what msp is after
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a nice downtrend price struggles and
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creating our deepest lower law
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so which lower high creates the deepest
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lower law
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as you can see this one
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the next step is confirming the strong
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market structure break
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you already know all these and end
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results now comes the order block
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so which swing causes the market
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structure to break
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as you can see this swing
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what should you look for
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the last swing that causes the market
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structure black
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so the last red candle stick that starts
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to swing which causes msp
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is our order black candlestick
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if you are confused don't worry let's
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see an example
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as you can see in this example our
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strong msp and deeper slow low are quite
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clear
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now can you tell me
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which last red candlestick starts the
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swing
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that causes the market structure to
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break
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this is our red candlestick
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our order black demand zone
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it all starts with this candlestick
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and when the price comes back to this
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demand zone we expect a reaction
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let's check the bearish order black
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one identify the deepest higher high
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two identify the higher low that creates
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the deepest tyre high
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three confirm the strong msp
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four
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identify the swing that causes the
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market structure break
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five identify the last green candle
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stick that
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starts to swing which causes the market
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structure to break
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this green candle stick is
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order black our supply area
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let's see an example
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our deepest tire high and strong msb
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are already confirmed as you can notice
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now tell me this
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which swing
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causes the market structure to break
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yes you can see that this saving causes
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the market structure break
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so
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when did this swing movement start
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right here
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the last green candle stick that starts
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the saving movement is our bearish order
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block and our supply area
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we expect price react from here
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do not worry this is just a technical
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video the next video will be full of
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examples
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nothing is perfect in life trading is
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the same
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many times you will notice that msb
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does not happen at once without a prior
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consolidation
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now i want to tell me
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which swing
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causes a market structure break
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number one
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number two
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or number three
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as you can easily see our market
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structure breaks with the number three
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so this time our order block demand zone
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is this red candle stick
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which creates the swing with the market
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structure break
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let's see an example now
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as you can see in this example there is
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a bit of consolidation before the market
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structure break
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there are three savings
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that's number one cause msv
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no
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does number two cause msp
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no
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does number three cause msp
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yes
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now this red candlestick
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is our order block
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as you can see
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price come back to our demand zone and
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reacted really well
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okay now you identified the order black
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candlestick but how to draw supply and
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demand areas from these order blocks
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this concept heavily depends on the
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trader
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if the candlesticks has a huge body and
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small wicks
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i only take the body of the candlestick
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as the demand or supply area
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if the body is so small
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i consider taking wicks with the body as
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a whole
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the most important part of order blocks
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is
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the middle point
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this is where pro traders place their
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stop limit orders for sniper entries
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this is a risky way of trading however
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the reward is really high
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before we move on i have to talk about
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break-off structure
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boss
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it is a very easy concept right after
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market structure break if the trend
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continues by making new higher highs
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each time the price breaks the previous
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higher high we have a break off
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structure
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now some traders call msp as boss
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but names do not matter you can name it
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whatever you wish call it anything you
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want i've seen many traders use higher
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laws or lower highs that cause a break
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of structure
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as order block supply and dimensions
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well actually there are market structure
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breaks at every single sieving point
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just go in a lower time frame
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you will witness another market
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structure break
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so this means that order blocks are
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everywhere but the question is are they
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usable
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we will learn soon another thing i saw
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is that some traders consider every
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single engulfing pattern as order block
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supply and demand zones
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if you go in lower time frames you will
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again see that there are market
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structure breaks
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again the same question
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can we consider
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every single engulf pattern as an order
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block
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don't worry you will learn how to
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identify
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the highest quality order blocks right
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now
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quality order blocks part one
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obvious strong market structure breaks
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are my number one preference to identify
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order blocks i usually look for strong
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msp rather than break off structure or
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random engulfing patterns
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because these order blocks are so strong
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that they managed to change the market
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structure strongly this is not an easy
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task
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generally a market maker or a big
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catalyst such as news can do this
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quality order blocks part 2. i always
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look for big pumping moves with
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imbalances rather than slow expansions
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this increases the quality of the order
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black but why again think about it
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can small traders and retail traders
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move the price like this
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usually they cannot
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so there should be a reason behind it
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such as
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market maker involvement or there's a
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catalyst
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like big deals contracts or partnerships
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quality order blocks part three
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okay
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right after a big pump with imbalanced
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candlesticks i would like to see
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slow pullback to order block supply and
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demand zones this indicates a healthy
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price action
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otherwise if you see pumps and dumps
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pumps and dumps all the time it means
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that it is quiet an easily manipulated
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asset quality order blocks part 4. this
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is again my personal choice i find order
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blocks stronger if they can break the
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market structure at once without prior
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consolidation or range
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of course the other types of order
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blocks are still good quality and usable
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quality order blocks part 5.
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key levels are really important to make
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the order blocks stronger
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actually key levels make every other
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price action structure stronger
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so what are these
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significant support resistance areas
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sr phillips other price action supply
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and dimensions round numbers significant
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key levels like day week month high low
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of close open
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volume profile high volume notes
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so combining these key levels with the
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order block
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makes the ob much more high quality
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quality order blocks part 6. this one is
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about entry quality microstructure brag
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does not mean the trend will change
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yes it is a high chance but not certain
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many times prices come back to test the
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order blocks again and again i
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experienced that the first test back to
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order blocks have the highest quality
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reactions
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other tests could be unreliable or
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unknown
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okay let's create my ideal super order
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block but this is just my own opinion
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1.
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strong market structure break
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confirmation
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2
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market structure break happens at once
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prior consolidations
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three microstructure break happens with
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big pumping candlesticks with imbalances
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do not worry about imbalance i'll teach
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you in detail in the future however you
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can watch the best trading wheel
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indicators for price action video that i
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showed the imbalance indicator
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fourth an engulfing pattern could be
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ideal for a higher quality
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ob five
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fast pump time than a slow pullback time
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for a healthy price action
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six key levels are very important such
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as support resistance day week month low
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and highs and volume profile high volume
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notes
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seven
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the first test to open is usually better
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and healthier for entries
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ok let's see the example
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1. strong msp happens
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2 msp happens at once without prior
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consolidation
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three msp happens with a big pump with
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imbalanced candlesticks
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four
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nice engulfing pattern at ob point
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5. fast pump and slow pullback for
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healthy price action
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6 key levels
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actually this is the area of the
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previous month's law
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seven the first test for ob demand zone
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yes this is my ideal super order block
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of course that will not be 7 out of 7
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all the time it's impossible
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but please keep checking these parts as
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much as possible
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ok let's talk about how to enter order
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block supply and demand zones there are
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three significant entry types and i use
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three of them depending on my time and
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risk management
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the first entry is a risky sniper entry
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what you do is so simple
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identify the mid level from the high
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quality order black candlestick and set
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your stop limit order that's it
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our stop loss order at the low point of
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order block candlestick
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this is the most rewarding entry type
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but the problem is that there's no
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guarantee that order block will work
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price may drop even lower who knows the
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second entry type is that i mentioned
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all the time
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first of all identify a significant
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reversal candlestick around the order
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blocks supply or dimension for example
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hammers pin bars or spinning tops and
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bottoms
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and wait for the next supporting red or
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green candlestick to make an entry
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your risk reward ratio will be more
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balanced unlike high rewarding sniper
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entries the last entry type is the most
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secure entry possible which is used by
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all price action traders the downside is
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it requires patience and time
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you have to combine high and low time
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frames and find order block areas in a
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long time frames with a strong market
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structure break
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as you can see this chart is in 4 hours
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if you go down to 45 minutes chart you
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will notice a micro msp and a mini order
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block to enter a trait
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yes this is your best possible entry
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however as i said i use three of these
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entry types depending on my time and
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risk management
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how about scalping and quicker day
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trading you can easily combine high time
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frames and low time frames even for
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sculpting
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find or be in one hour chart make an
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entry width at 15 or 5 minutes
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find or be in 30 minutes chart and make
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an entry with a 5 or 3 minutes chart as
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scoping
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or even
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find and order black width 15 minutes
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chart and make an entry with two or one
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minute chart or use a sniper entries
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just go for high quality order blocks as
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much as possible it all depends on you i
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hope this session was clear for all of
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you thank you for joining me the next
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video will be about lots of examples of
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trading order blocks please subscribe to
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the channel and leave a like for me
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thank you take care and see you soon