OB = ORDER BLOCK
The LAST BULLISH or BEARISH cand before an IMPULSE up or down, represent an OB or Order Block.
-Why do we call them order blocks and why are they important?
Order Blocks are one type of supply and demand on the market, you can expect them to act as a support or resistance depending on the impulse after them.
an OB is where larger players (whales, institutions, banks) have orders laying in wait for the price to return to a level they are interested in, so that's how they act as strong supply or demand areas.
-Which OB is bullish and which one is bearish?
the last bearish candle before an impulse up is a BULLISH OB. so we highlight that candle from tip to toe (wicks) and name it as our POTENTIAL support area.
now you can guess how the bearish one looks: the last bullish candle before an impulse down is a BEARISH OB.
NOTE: DO NOT BLINDLY BID/ASK AT THESE AREAS, THEY OFTEN TEND TO TURN INTO BREAKERS
Now what is a BREAKER:
Breaker is an OB that fails to hold and the price finally breaks through it
-Just like OBs we have bullish and bearish Breakers:
BULLISH BREAKER, when a bearish OB fails to hold as resistance and the price jumps above it we expect that area to act as support now.
vice versa with BEARISH BREAKER, when a bullish OB fails to hold as support and the price breaks it to the downside we expect that area to act as resistance now.
in my experience Breakers are often stronger than Order Blocks and the first retest on them is very successful and profitable for me. DYOR and backtest and find your own strategy.
and by the way, if you find these information useful please leave a like and comment, thanks ;)
The LAST BULLISH or BEARISH cand before an IMPULSE up or down, represent an OB or Order Block.
-Why do we call them order blocks and why are they important?
Order Blocks are one type of supply and demand on the market, you can expect them to act as a support or resistance depending on the impulse after them.
an OB is where larger players (whales, institutions, banks) have orders laying in wait for the price to return to a level they are interested in, so that's how they act as strong supply or demand areas.
-Which OB is bullish and which one is bearish?
the last bearish candle before an impulse up is a BULLISH OB. so we highlight that candle from tip to toe (wicks) and name it as our POTENTIAL support area.
now you can guess how the bearish one looks: the last bullish candle before an impulse down is a BEARISH OB.
NOTE: DO NOT BLINDLY BID/ASK AT THESE AREAS, THEY OFTEN TEND TO TURN INTO BREAKERS
Now what is a BREAKER:
Breaker is an OB that fails to hold and the price finally breaks through it
-Just like OBs we have bullish and bearish Breakers:
BULLISH BREAKER, when a bearish OB fails to hold as resistance and the price jumps above it we expect that area to act as support now.
vice versa with BEARISH BREAKER, when a bullish OB fails to hold as support and the price breaks it to the downside we expect that area to act as resistance now.
in my experience Breakers are often stronger than Order Blocks and the first retest on them is very successful and profitable for me. DYOR and backtest and find your own strategy.
and by the way, if you find these information useful please leave a like and comment, thanks ;)