Order blocks are places where smart money try to grab the liquidity of the retail traders and therefore break structure. The last candle before an impulsive reversal occurs
HOW SMART MONEY MAKES MONEY FROM ORDER BLOCKS
Smart Money makes money by grabbing the liquidity from the retail order that were waiting for a reversal in the opposite direction.
- this chart shows how smart money are able to hedge against themselves by selling then buying back and still remain profitable
HOW CAN YOU TRADE ALONG SIDE SMART MONEY?
- Buy when the market retests wither the 50% of the order block candle or the open of the order block candle
FYI – order block candles are also sometimes called institutional candles so if you want to do your own research then make sure that you keep that in mind