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Order Blocks

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Order Blocks

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Order Blocks

How to find the right zone to trade?

Freedom Empire
@freedomempire.official
Agenda
Introduction to Keywords (3)
Currency pairs
Base and Quote
Spread

Introduction to Order Blocks


What is Order Block
How to Identify Order Blocks
How to Identify the most valid Order Block

Examples of BoS and Order Blocks


Order Blocks Question
Currency pairs in forex trading represent the comparison
Currency pairs between two different currencies.

Keywords Example: GBP/JPY

The base currency is the first currency in the pair, and the
quote currency (also known as the counter currency) is the
Base and Quote second currency. The value of the currency pair represents
the amount of the quote currency required to buy or sell one
unit of the base currency.

In the context of forex trading,


Spread the spread refers to the difference between
the bid price and the ask price of a currency pair.
What is an Order
Block? An order block is similar to a supply or demand zone, however
that zone is based on one indecision candle.

In the order block is where traders have their limit orders


waiting to be executed.

Order blocks are identified in areas where the price has moved
up or down significantly because of huge volume in the market
or where it has formed a change in direction.

Order blocks are also used to identify areas of discount or


interest levels.

It is formed also when a large amount of traders are going long


or short in the market.
How to Identify an
Order Block? Order blocks are formed by Indecision Candles.

What is an Indecision Candle:


Indecision candles are where the sellers and buyers find
equilibrium in the market.

Types of Indecision Candles:


Evening Star & Morning Star
Engulfed Candle or Marubozu Candle
Doji Candles
Evening Star & Evening & Morning Star can be found in the end of a trend or they
Morning Star can be the last candle that appears right before a large volume
comes in the market and creates a break of structure (BoS) in trend
continuation.

They can have small or large bodies but their wicks and tails will
always small and have the same size. This shows indecision in the
markets as nor sellers or buyers are taking over.
Engulfed Candles can be found in the end of a trend or they can be
Engulfed Candle
the last candle that appears right before a large volume comes in
the market and creates a break of structure (BoS) in trend
continuation.

They usually have large bodies with small wicks and tails of the
same size and sometimes they can be only long or short bodies.
Doji Candles can also be found in the end of a trend or they can be
Doji Candles
the last candle that appears right before a large volume comes in
the market and creates a break of structure (BoS) in trend
continuation.

They are formed only by their wicks and tails.


How to Identify an A trend is formed by Break of Structure in the market.
Order Block?
Your Order Block (OB) is going to be the last indecision candle
How to Identify an
before a huge move in price action is formed, that is causing the
Order Block? Break of Structure (BoS).
After an indecision candle there will be a long body candle that is
How to Identify an creating a break of structure. This is how you can make sure your
Order Block? Order Block Zone is valid.
Where to enter a
trade in our Order
Block Zones (Rules) On Higher Time Frame (Daily/4H/1H) highlight the Order
Blocks that are causing Break of Structure with high volume

When price is re-testing this Order Block look into a lower time
frame (15M/1M) and Identify the OB zones again

Once the new OB is re-tested, look for CHoCH and select a new
Order Block that is creating this change in trend and place your
entry order in that OB

Once price re-test this OB zone you can enter the trade
On Higher Time Frame (Daily/4H/1H) highlight the Order
Where to enter a Blocks that are causing Break of Structure with high volume
trade in our Order I have identified each OB on 1 Hour Time Frame
Block Zones (Rules)
When price is re-testing this Order Block look into a lower time
Where to enter a frame (15M/1M) and Identify the OB zones again
I went on 1M time frame and identified my new OB where I took the
trade in our Order trade. If you want even smaller risk you can wait for a CHoCh in this
Block Zones (Rules) OB and select a new OB in the zone where it is causing the CHoCH,
and trade from there.
Your Turn !
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