he right way to make use of order blocks is to consider them as a high-probability trade setup alongside your key trading strategy. Order blocks are not usually formed; hence, they cannot be used as a single strategy.
If you use order blocks as a trade setup, you can find really high-probability trade entries, and you can use them to reap additional profits alongside your core trading strategy. Order blocks, pin bars, and reversal patterns can be combined to be used in the trading.
So, let’s see how to find the order blocks on the chart:
Order blocks are a rare type of supply or demand zones, so trading order blocks and supply/demand zones are the same.
Simply mark the zone on the chart.
Wait for a Doji , engulfing bar, or large range bar to appear, and then place the stop loss on the other side of the bar. Look for the price to move away.
Finding the zones can be a little hard for beginners, but practice can make it easier. All you need is to look closely at the area where the price is fluctuating in a very tight range. Such consolidations are formed only when banks place a block order. Hence, an order block should exist and establish a demand or supply zone .
If you use order blocks as a trade setup, you can find really high-probability trade entries, and you can use them to reap additional profits alongside your core trading strategy. Order blocks, pin bars, and reversal patterns can be combined to be used in the trading.
So, let’s see how to find the order blocks on the chart:
Order blocks are a rare type of supply or demand zones, so trading order blocks and supply/demand zones are the same.
Simply mark the zone on the chart.
Wait for a Doji , engulfing bar, or large range bar to appear, and then place the stop loss on the other side of the bar. Look for the price to move away.
Finding the zones can be a little hard for beginners, but practice can make it easier. All you need is to look closely at the area where the price is fluctuating in a very tight range. Such consolidations are formed only when banks place a block order. Hence, an order block should exist and establish a demand or supply zone .
Trade closed: target reached