What are order blocks in forex?

Order blocks in forex refer to the collection of orders of big banks and institutions in forex trading. The big banks do not just open a buy/sell order, but they distribute a single order into a check of blocks to maximize the profit potential. These chunks of orders are called order blocks in trading.

Why is institutional order block a big deal in the forex market?

Institutional order block is a huge deal in the forex market because when it appears, it changes the direction of the market with the institutional candlestick formed. These institutional order blocks become major supply and demand zones in the future. Order block is a large consolidation that breaks out with a sudden impulse aftermarket ranges.

How do you know if a forex order block is a sign?

Whenever you see a sudden price rejection each time the market gets to a specific area on the chart, it’s a telling sign. Simply draw a rectangle that contains the horizontal level from which the price keeps rebounding, and the accompanying market structure. This is where a potential forex order block might be located.

Is trading order blocks a surefire trading method?

Stay disciplined and stick to your trading plan. Like any trading strategy, trading order blocks is NOT a surefire trading method, Before trading this approach in a live trading environment, it is critical to practice and backtest it for yourself! Did this content help you?