Real Trend, Mitigation, and Impulse

What is Order Block?

Order block is considered a market behaviour that indicates the pile-up of orders from banks and institutions. Order blocks are kinds of supply and demand zones formed when there is a block order/s.
- 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 split their positions into small and manageable blocks called order blocks. 

Right way to use Order Blocks!

Order Block setups are consider as a high probability trades alongside with the key trading strategy. Order blocks are not usually formed; hence, they cannot be used as a single strategy. Order Block are not formed only from the 2 candles, It can be area of multiple candles that indicates the pile-up of orders from banks and institutions



Mitigations

The Market has an Impulse and Pullback: Basically return to the point of origin forming HL or HH to fill the resting BUY/SELL’s orders. In case of range the market would come back so that BFI can mitigate out of their SELL positions, as it’s known that BFI area taking BUY’s and SELL’s to be able to stack their orders and generate their own liquidity. Once the impulse begins they are up on their Buys and in drawdown on their Sells, in this way price is pushed downside to fill the resting BUY orders and mitigate out of their Sell positions, before the upside continuation. This is where we find entries. BFI footprint.