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    Bullish OB

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    fahadfx.trading

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    © All Rights Reserved
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    Bullish OB

    Uploaded by

    fahadfx.trading
    6 views4 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    6 views4 pages

    Bullish OB

    Uploaded by

    fahadfx.trading

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    ICT Bullish Order Block

    What is ICT Bullish Order Block?

    ICT bullish order block is the zone/area in a price chart, where a large number of buy orders
    are executed by institutional traders in the market and market shows sudden strong move
    from that area.

    Retail traders follow institutional foot prints, so they wait for these order block zones to buy
    in the market & make profit along with big institutions like banks.

    Bullish order block is a bearish candle followed by a strong bullish engulfing candle.

    How to Identify Bullish Order Block?

    A bullish order block is the last bearish candle before the bullish impulse (strong sudden)
    move, it typically consist of two candles, with the first candlestick being a bearish and the
    second candlestick being a bullish one.

    But to identify a valid bullish order block you need to check following things.

    (I) Second candle being a bullish candle, should grab the low of previous bearish candle. Price
    should go below the low of previous bearish candle.
    (II) Second candle being a Bullish candle should close above the high of previous bearish
    candle.

    (III) Imbalance in lower time frame in the order block zone.

    (IV) Structure shift in lower timeframe.

    To sum it up we can say, second candle should completely engulf the first candle – body to
    body & wick to wick.

    How to Trade Bullish Order Block?

    To trade a bullish order block first of all you have to identify the market order flow/trend.

    Bullish order blocks are mostly reliable in bullish trend however in bearish trend they may
    offer a small retracement move.

    So its preferable to trade bullish order block in bullish trend.

    After identifying the trend of market you have to spot a valid bullish order block as explained
    above.

    After identifying a bullish order block you have to wait for price to retest the bullish order
    block.

    When price approaches the bullish order block you can execute a buy trade at 50%
    retracement of bullish order block.

    For extra confirmation you can look for ICT Market Structure Shift in the lower time frame like
    15 minute or 05 minute.
    As in the picture above you can see XAG/USD daily chart making higher highs and higher lows
    indicating the bullish trend.

    After the we have spotted a valid bullish order block and when price tested the order block a
    buy trade was executed after the confirmation in lower timeframe targeting the old high as
    draw on liquidity.

    You can see it worked perfectly hitting the target and delivering 1:3 reward.

    Stop Loss and Take Profit

    While executing a trade using bullish order block you can set your stop loss 10/20 pips below
    the low of order block.

    For take profit you can target the next Draw on Liquidity level.

    Is ICT Bullish Order Block Reliable?

    Yes a bullish order block is reliable for trading mostly in bullish trend as it may offer
    continuation of bullish trend.

    While in bearish trend the bullish order block may act as liquidity and price may go lower
    breaking the bullish order block.

    Can We Trade using Bullish Order Block Solely?

    Yes you can trade solely on the basis of bullish order block using the correct bullish order
    block in ICT Optimal Trade Entry zone, in bullish trend and using ICT Market Structure Shift in
    order block zone as confirmation of trade.

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