Simplifying Order FlowThis chart analysis shows you the power of order flow using two main things:
OB - Order Blocks
BOS - Break of Structure
If you can determine a trend utilising impulse and correction, you can almost always ride the wave by scaling in positions using this method.
First, determine your trend and then wait for a break of structure of a low/high.
In this example, we are in a bearish market so we are anticipating a break of a low before we can draw up our order block.
Once we get a break we can mark the OB that created the break and then wait for demand at a later date for sells.
IF the price gets too far away from the OB and looks like it isn't going to return to that point, we can move on to the next BOS and OB.
Note: This does not always mean that price won't return but we can still capitalise on the short term moves.
I have left an example of what could potentially happen next, although I am doubtful because the trend looks like it is coming to an end.
Please take a moment to like and comment on this post!
Orderblocks
SHIBUSDT 30M Order Block and Daily 26EMA LongGood example of BINANCE:SHIBUSDT 30M Order Block and Daily 26EMA confluence Long. I consider a bullish order block to be a red swing low candle followed by a green candle that closes above the red candle open (green candle must close above to satisfy my definition of order block). The Daily 26EMA is also a strong dynamic support line if price is staying and closing above. Take profit areas are previous 4HR order blocks and breakers as well as the Daily 12EMA. Solid 37% move and 6.5 RR trade.
MTF Order Block Finder Final Update!
Release Notes: FINAL UPDATE
This script is Open Source and completely free and will remain public indefinitely!
We'll be releasing a Private Script with extremely useful Alert Conditions in ~1 Week!
Consider following my Profile to see updates regarding trial periods and subscriptions.
Start using the Free version of MTF Order Block finder before moving onto the Premium version,
with Alerts based on High Timeframe candles entering and leaving Order Blocks!
How To Use Order Blocks
1. Set the "Resolution" to a higher timeframe than your intraday chart (1H, 4H, D...)
2. Configure your "Order Block Style and Colors" to your liking
3. Pending Trade Setup - Price enters and closes within an Order Block
4. Entry Condition - Price exits and closes outside of an Order Block
5. Second Entry Condition - Confirm with your favorite momentum indicator (RSI, Stoch, TDI, Squeeze...)
6. Set your SL to the Order Block's furthest level (top or bottom)
7. Set your TP to the next Order Block's closest level (top or bottom)
8. Brew some coffee (or tea) and ride it out.
Smart Money CONCEPTS - Can you relate?Here is an overview of (to me) why support and resistance don't work (at a successful enough rate).
If you feel like this is the case be honest with yourself. And maybe try something new. please remember the 90 90 90 rule!!!
90% of traders
Lose 90% of their account
In the first 90days
Have a little think as to why?
For the majority of newbie traders that enter the market.. the first thing they are taught to understand?
Support and Resistance, Trendlines, Fibonacci (does work if used correctly)
So just be mindful of what the banks are doing and understand from their perspective that if they know the MAJORITY trade Support and Resistance... Don't you think they know where the majority of the people stop losses are going to be? ...
Any questions feel free to ask
Market Structure | Impulse/CorrectionsMarket Structure | Impulse & Corrections 🎡😈
What is Market Structure?
Market structure is a trend-following technique that traders use to read and track how the price moves. Bullish moves, bearish moves, and ranges in between Market structure is also known as price action at times. As a result, we call it market structure since that is how the entire market moves.
How to identify Market Structure?
Wait for a swing high/low to be broken.
(candle-stick body must close above swing high/low)
What is Market Structure telling us?
in a Up-trend scenario, higher-lows will provide
in a Down-trend scenario, high-highs will provide
What is impulse/corrections?
The natural behavior of the Market.
What is correction?
When price is in a ranging or sideways market.
What is a impulse?
The point when price impulsively breaks out of the correction
How to use Impulse/Corrections?
to identify which phase we are in, and what to expect next.
Summary:
Market structure is the guidance to a trade setup, failing to identify market structure will lead to many unnecessary losses and an overall bad analysis.
Every trade consist of few things such as..
The first step to a trade is analysis which requires market structure in order to do so.
Very simple rules to follow.. BUY LOW - SELL HIGH 🎡
Eg.2: Viewing Break of Market Structures as Broken Expectations Another example of how market structure breaks can be viewed from a perspective of broken expectations of either parties (buyers or sellers). If you were a buyer or seller, where would you be getting involved? Had you gotten involved, would your expectations have been met? If not, how violently were they broken?
Back Testing GBPUSD One Loss Two wins Im continuing the OANDA:GBPUSD back test loss the first trade but quickly adjusted to win two back to back patience is the key understanding the higher time frames as well.
Back Testing GBPUSDI was back testing OANDA:GBPUSD and decided to share my thought on how I trade SMC rather it was a win, loss, or break even. Im using top down analysis, order blocks, liquidity, institutional order flow etc...
Price Action Study: Single Candle Supply & Demand ZonesHappy Sunday everybody, today I'll be providing a quick writeup on identification of single-candle Supply & Demand zones, otherwise known as "Orderblocks" (Credits to ICT for coining this phrase)
Supply & Demand are one of the most fundamental aspects of trading securities.
In price action - liquidity is believed to be the driving force behind market movements. The primary reason assets move is because of an imbalance between buyers and sellers - supply & demand.
If supply outweighs demand, price moves down.
If demand outweighs supply, price moves up.
If supply and demand are relatively the same - the market consolidates.
Supply and demand zones are created during consolidations - and today we are going to look at how to identify them. When prices is to return to these zones, we look for signs of accumulation to go long, or distribution to short.
Single candle supply and demand zones are also commonly referred to as "orderblocks" - here's how to identify them.
Demand/Bullish OB: A down candle before an up move that breaks market structure - a higher high.
Supply/Bearish OB: An up candle before a down move that breaks market structure - a lower low.
It is an important distinction - we need a structural break for the zone to be a meaningful region to watch if/when price is to return.
-Will, OptionsSwing Analyst
ORDER BLOCK - analysis on EURUSDLiquidity was grabbed on May 9th, forming an order block and a sub-sequent impulsive bullish move. that boke previous structures. The price is expected to go up again once it hits the order block.
Also, if you look at volume profiles, we have coincidence with a low volume node, that eventully would not support the price drop.
I would not take this trade though as there is liquidity just below the OB and another stop haunt is expected.
Understanding the NFP EU PumpHere are some questions I put out to my community group the other day followed by the answers. The reasoning being the move has been annotated on the chart.
Why did price slowly decline prior to NFP?
- Price had to decline slightly before NFP to mitigate the impulsive move created earlier in the day.
- Price had to stop out break and re-test buyers with a tight stop loss
- Price had to lure sellers into the market before NFP
Why did price reject the exact box marked before skyrocketing?
- Price skyrocketed because it had gathered enough liquidity from stopping out the buyers.
- It utilised the previous order block to skyrocket to take out the impulsive sellers before NFP.
Educational ContentIn this example, we can see that this is a typical trend continuation move.
1. Bullish impulse leg, followed by a "Consolidation before breakout".
2. For those who trade with SMC = Smart Money Concept, you will identify the breakout zone as an ORDER BLOCK .
3. Prices made a Swing High, followed by a "FALLING WEDGE" pattern, forming liquidity beneath the minor swing lows while approaching the ORDER BLOCK .
4. 1st Buy Entry would be at "OB1 - PRIMARY ZONE".
5. 2nd Buy Entry would be a classic "Breakout Retest" retail trading technique.
This is how you combine Retail Logic with Smart Money Concept.
Smart Money Concepts - StructureThe basics of Smart Money Concepts with an overview of market structure and liquidity.
Basic Concepts of Liquidity Truly understanding 'why' the market moves through basic concepts of Liquidity
This basic analytical overview is derived from the institutional methodology used at Phantom Trading.
We use this institutional methodology commonly known as 'smart money concepts' in conjunction with additional pieces of confluence to utilise Liquidity around the factualities of the market.
Within the graphic is 'reads a story of transitional money flow' in a clear, concise manner based on a 'vanilla / utopian / textbook' setup.
At the extremity we can see the absolute 'swing high' creating a BMS (Break of market structure) followed by an impulsive continuation to the downside showing 'Bearish' Intent, the market tapping into demand & buy side liquidity has then correctively navigated back towards the previous swing high, printing what is commonly known as a 'double top' where several 'trading styles / types / characteristics' come into play - Front running 'Breakout traders' , Double-top' traders and the more patient Trend continuation', 'Breakout & Retest' traders. Knowing and understand concepts of Supply / Sell side liquidity around these levels we classify these as EQH - equal Highs as Liquidity is manufactured in these specific regions filling bids & offers.
Once we have 'swept the liquidity' above the EQH it provides us with additional opportunities to Short the 'asset-class'
The Basic Concept of Liquidity - LongMirroring the previous graphic based on the 'sell side' this graphic provides insight and annotates how institutions view and see the market based on the core concepts of Liquidity utilising
the models around 'Premium vs Discount'
The graphic shows key points where liquidity is manufactured around 'traditional retail methodologies'
If and when you can understand WHY the market moves the way it does, then you will be able to take your trading to the next level !
BTC Weekly OB'sFor those interested, OB's are quite the holy grail in BTC, together with RSI divergences... and PA (patterns, candles, etc...)
The only untested OB's are shows in blue, the ones already tested in green...
So we can see we have our bullish OB above PA untested, even if we gonna make a new low, we should test it, starts at 8223$ and ends at 9529$, but closing above 50% OB at 8876$ we are more inclined for upside continuation, closing above 9529$ or will be bull trap or we'll pump to next OB from there because it's bullish.
On the other hand, we haven't tested the bearish OB and we should do it, sooner or later (it makes sense sooner, probably after poking 8223$), closing below 50% OB at 7314$ we're more inclined for downside continuation, closing below 7119$ or will be bear trap, or we will dump from there because it's bearish.
So, right now we have a small range, a medium range and a larger range:
Tighter range: 7500$ - 8223$
Medium range: 7314$ - 8876$
Larger range: 7119$ - 9529$
As explained above, you already know what to do!
About the highest OB, we can't really say it's untested as we tested right after closing below with 2 candles (1 wick and 1 candle close inside, as you see, BTC wicked 50% OB but wasn't able to close above, so it dumped from there.
I drawn it like untested OB, because going up, from bottom 3k to high, you can see that we haven't poked that OB, and it's the only one untested, so I'd say we will do it, when... that's the question, but soon if we remain bullish and printing HH, HL.
OB's are magnificent tool to trade, learn them if you wanna be successful!
Chart is almost naked, just OB's, and you could trade solely on them.
PS: I just drawn the OB's that matter the most for the recent price action and to show how they "always" get tested!
PSS: I might be confusing bearish and bullish, because I don't need to name them and never do, would rather call them green and red but some are white and black :)
