Order Blocks

TIMESTAMPS

5:49 – BACKGROUND

• Igor studied past data and was blown away by the results.
• Order Blocks are found near, or at the CC and the 78,6 => higher probability trades, especially when these are confluent with other S/R levels / confluences
• The 0.25 tool was basically born here to split OB and ranges. 
  • Laddering positions from the 0,0.25,0.5 and 0.75
  • Anywhere beyond that and it is more likely to hit invalidation.

8:16 THE PERFECT TRADE

• First mention of OB can be found in Contenders stream 13.

9:11 BULLISH ORDER BLOCK

• The last “down’ close candle, formed at or near a key level of support.
• Order Block is only confirmed when the next candle trades above its high
• Most probable bullish order blocks, are followed by an impulsive move up with imbalances and often leaving some single prints, what Igor calls “Unfinished Business”

10:16 BEARISH ORDER BLOCK

• The last “up” close candle, formed at or near a key level of support.
• Order Block is only confirmed when the next candle trades below its low
• Most probable bearish order blocks are followed by an impulsive move down with imbalances and often leaving some single prints, what Igor calls “Unfinished Business”

10:55 WHEN NOT TO CONSIDER AN ORDER BLOCK

• If no key level is hit. 
  • a merged range vpoc/tpoc 
  • D,W,M level
  • No swing low/high is present

14:12 - PREFERRD TIMEFRAME

• The higher the timeframe, the higher the move away from the bullish or bearish order block
• Can be traded on every timeframe

15:00 THEORY

1. A weekly support level hits, and that same daily candle closes red (down close), let’s assume here are many traders bearish and shorting support
2. The next candle opens and moves down to create the new daily low (short traders happy)
3. We get a move above dOpen (short traders start to sweat), followed by a continued move higher than 50% of pDay (unconfirmed bullish order block)
4. Price trades above the high closing the day bullish and often leaving single prints behind
5. Many will wait for lower / for price to come back to entry => this will amplify the next move as it will be more fuel for later when price revisits this order block
6. Once we have the confirmation and price is now trading higher, we can look for a previous daily swing high broken, even if it takes a few more days => Now we focus and study the bullish order block and take note of: 
   • OHLC
   • Resting orders
   • Volume
   • Delta
   • Imbalances
   • Poc
   • Value areas

18:50 HOW TO TRADE AN ORDER BLOCK

• Use the 0.25 tool drawn from open to close if bullish
  • Place 4 laddered orders from 0, 0.25, 0.5 and 0.75
  • Stoploss at the swing low
• Use the 0.25 tool drawn from close to open if bearish
  • Place 4 laddered orders from 0, 0.25, 0.5 and 0.75
  • Stoploss at the swing high

19:45 WHERE TO TAKE PROFIT

• Conservative: the next order block or CC
• Aggressive: above the next swing high or swing low

20:45 - THE LEVEL UP

• There are two types of candles, bullish and bearish
• Inside every candle there are a series of orders, buys and sells, also called “clusters’
• With order flow software we can have x-ray vision of all orders resting by enabling the candle Clusters view

22:40 – WHY USE CLUSTERS

• Using clusters will give us better entries => lower risk
• Even more better entries by using the CCTR strategy

24:06 – PERFECT TRADE EXAMPLES

• Daily Order Block + 78.6 => 22% move
• Daily Order Block + Weekly range => 7.5% move
• In Atas we can merge candles by using the TPO profile tool
• Use CCTR for entry