How do order blocks work?

Order blocks often act as support and resistance levels. If the price bounces off an order block more than once, it is seen as a strong level of support or resistance, depending on whether the price came from above or below. The more times that price returns to the order block, the weaker it becomes as a support or resistance level.

How do you trade order blocks?

Here’s a step-by-step guide to trading order blocks: 1. Identify order blocks Analyze past price action on the chart to find areas where the market has shown a significant reaction, such as price reversals, consolidations, or breakouts. Mark these price levels as potential order blocks, which may act as support or resistance. 2.

What is order block trading?

Order block trading is your answer. These crucial market territories, carved out by hefty institutional orders, can dictate the ebb and flow of prices. Recognizing and using order blocks properly can sharpen your trading strategies and decisions. We’ll steer you through understanding and employing this powerful tool to elevate your market game.