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Lesson 1 Orderblock Propulsion Block Breaker

The document discusses order blocks, propulsion blocks, and breakers in technical analysis trading. [1] An order block is a down candle in an uptrend or up candle in a downtrend that price often reacts from without breaking above or below the midpoint. [2] A propulsion block is a candle that trades into an order block and breaks above or below it, signaling the trend may continue. [3] A breaker is a candle close near a recent high or low of low liquidity that often provides support or resistance when the next breakdown or breakout occurs.

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Nelwan Natanael
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3K views16 pages

Lesson 1 Orderblock Propulsion Block Breaker

The document discusses order blocks, propulsion blocks, and breakers in technical analysis trading. [1] An order block is a down candle in an uptrend or up candle in a downtrend that price often reacts from without breaking above or below the midpoint. [2] A propulsion block is a candle that trades into an order block and breaks above or below it, signaling the trend may continue. [3] A breaker is a candle close near a recent high or low of low liquidity that often provides support or resistance when the next breakdown or breakout occurs.

Uploaded by

Nelwan Natanael
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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DISCLAIMER

Everything here are my notes from my trading blog. I am not a financial advisor. This is not financial advice. The content is provided for
informational purposes only. To make the best decision that meets your needs please do your own research. All investments carry some
form of risk. Nothing is guaranteed. Please do not invest money you can not afford to lose.
ORDERBLOCK / PROPULSION BLOCK / BREAKER
What is an Orderblock? Where, when, how we use them & why it’s so important?

In simple terms it’s a down candle in a bullish run / up candle in a bearish run.

Ideally the best Orderblock will not see price going below/above the midpoint (MT – Mean Threshold) of the entire body of the candle.
We mark Bullish Orderblock as “+OB”, Bearish Orderblock as “-OB”, midpoint/Equilibrium of the Orderblock as mentioned above – “MT”.

When talking about the Orderblock we always mainly focus on the body of the candle not wicks, we focus on where the bulk of the volume is

Orderblocks can be refined from Monthly down to 15 second time-frame, in example one bulky 60min down candle in a bullish run will be 4 x 15min
bearish candles. How we analyse it? – we mark the high and the midpoint of that 60min candle / 4 x 15min bearish candles. That’s where our focus
goes, however, there will be times when price will go as far as the last 15min candle but that is not where our eyes are at as in most cases that
would be below the 60min MT (very sensitive area where from which price usually react very aggressively), that’s why a lot of “Smart Money
Concepts” / “SMC” traders with Entry Orders all the way down on the last 15min candle a lot of times will miss the move.
What makes Orderblock high probability?

The focus goes to 3 main factors:


• Strong, big body of the candle (ideally)
• Fast, aggressive movement away from the Orderblock
• Price leaves a FVG moving from the Orderblock (OB coupled with FVG is what we want to see)
What is a Propulsion Block?

How to identify them:


• A Propulsion Block – in a bearish scenario it’s an up candle that has traded into a Bearish Orderblock.
• If price doesn’t react from the Propulsion Block immediately, and breaks below/above it – that’s
usually a sign that the bullish/bearish run is not over, and price will keep on breaking against the
anticipated direction
What is a Breaker?

How to identify them:


• A bullish Breaker is a Up Close candle in the most recent run on short-term low Liquidity (vice versa
in a bearish scenario it’s an Down Close candle before price runs a short-term high).
When the breakdown (break of structure – BMS) happens, that’s a strong area to pay attention to.
• The stronger Breaker will always be the low/high that forms before running a consolidation, not just
a short-term low/high.
• Breaker is a very sensitive area. A lot of times it will hold the price providing “support, resistance”.

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