Order Blocks

WHAT IS THE ORDER BLOCK IN FOREX?

Order blocks are special kinds of supply and demand zones formed when there is a block order.

***Banks use special orders for buying, selling, taking profit, and closing the orders. When banks want to open a position with volume, they do not randomly place a position to upset the price and trigger their order at a worse price that may result in lowering their profit.

***For that purpose, they try to split their positions into small and manageable blocks using order blocks.

Bullish and Bearish Order Block

Bullish order block

A bearish bar or candle is formed before an upward move takes place. It results in breaking the structure and making a new high or higher high. Such a structure is anticipated to render support to the price.

Bearish order block

A bullish bar or candle is formed before a downward move takes place. It results in breaking the structure and making a new low or lower low. Such a structure is anticipated to render resistance to the price.

How do you draw an order block?

For drawing a bearish order block, simply mark the high of the rally and the recent swing low and draw a rectangle around it. Now extend the rectangle to the right into an empty area of the chart where price will act or react in the near future.

For drawing a bullish order block, simply mark the low of the rally and the recent swing high and draw a rectangle around it. Now extend the rectangle to the right into an empty area of the chart where price will act or react in the near future.

Comments

PROP FIRMS

PROP FIRMS are financial institutions with a large pool of funds who allow traders from worldwide to let them trade financial markets for their private gains. The main problem that prop firms solve for traders is simply capital. They let anyone can access the capital amount that he/she never get their hands on. All you need to do is buy one account that suits you and start evaluation phases. Once you clear evaluation phases you will get real money account. Yahhh baby.... Real Money..... ***Best Prop Firm*** MYFUNDEDFX (***click using above link to access my strategy***) ***Low Profit Target to get funding. 6% in Phase 1 and 5% in Phase 2. ***Refundable Fee ***Trader Freedom to trade own style with no restrictions ***Traders Looking to trade multiple instruments under one account. World Index, stock, ...

Forex Trading Tools

Forex Expert EA A forex robot also called an Expert Advisor (EA), is a piece of software with inbuilt programmed rules that automatically make trade entry and exit decisions on MetaTrader 4 platform for Forex trading. Benefits: ***From a psychological point of view, the forex expert advisor is irreplaceable. A trader decreases the responsibility for decision-making, and the trades become less stressful. The trader does not need to have an in-depth knowledge of technical and fundamental analysis, since all the calculations are already included in the program. Besides, the advisor is able to handle the trading signals even when the trader is absent from the workplace. Full Article ***Find Best EA Robots Here*** Photo by Nataliya Vaitkevich from Pexels Forex Indicators Technical indicators are chart analysis tools that can help traders better understand and act on price movement. There is a huge range of technical analysis tools available that analyze trends, p...

Forex Master

Search This Blog