We have a break in market structure below. A good retrace for a short right now would be around the .705 fib where the order block lies. Provided we don't pump hard above it, we should see a sell off to the next weekly horizontal level (red).
Thx for this plan! What´s the best way to trade order blocks? Hit and go or better wait for reversal pattern in this time frame?
UnknownUnicorn3664665
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@DesertRabbit1, You have to identify them first. They must precede a move that takes out a swing point(break in market structure up or down). Then you gotta look for confluence, it's best when a block or a breaker rest between .62 and .79 fibs, and an additional confluence would be if it's formed around a weekly or daily important horizontal level.
Try to backtest it on some pairs and see which ones work and which ones don't.
CorpusFX
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@UnknownUnicorn3664665, what confuses me is the fact that you would only know its a breaker block until price breaks through the breaker(I could be worng here), so if you thought it was an order block it and got in on the first retest you automatically lose. My question would be how does one identify the breaker and the order block before price returns to it?