Last candle/series of candles, in the opposite direction, formed before an impulsive move away from it.
Formed at or near a key level of support/resistance.
OB is confirmed when the next candle trades above it’s high if bullish or below it’s low if bearish.
12:00 - LIVE OB CHARTING
The fractal can help you to find your swing highs/lows.
In a downtrend you look for bearish OBs => look for shorts.
In an uptrend you look for bullish OBs => look for longs.
Use the Footprint bar statistics and check for the volume of the candle.
For a bullish OB you want to see negative delta.
Igor would not take an OB with a small body but would combine it with the previous candle and use Atas to have a deeper look into the candles (TPO tool).
The second move to the order block can be very impulsive caused by traders closing/opening positions.
Have at least 2 confluences to consider trading the OB.
Igor looks at the imbalances to find more confluences. For a bullish OB look for selling imbalances.
Which timeframe to look for order blocks?
Start from high to lower timeframe, if it’s not clear on a higher timeframe go down a timeframe and look for the best entry.
Don’t go to low, always be aware of the HTF confluence.
50:44 – SUMMARY
Find and mark the best order blocks near or at key levels of S/R’s.
Have another confluence (fib etc).
Zoom in clusters view and find all volume details.