How to Find Order Block on Any Forex Pair & Gold (SMC Basics)
Order block is easier to find than you think.
I am going to reveal 2 simple price models that will help you find strong bullish and bearish order block zones on any Forex pair.
Discover how to identify OB and how to draw it properly in Smart Money Concepts SMC trading.
To effectively spot Order Block, you will need to learn basic Structure Mapping.
To find a bullish order block, you will need to learn by heart a classic bullish trend model.
According to the rules, that market is trading in a bullish trend if the price consistently updates Higher High HH and Higher Lows HL.
Such a price action confirms an uptrend .
The last higher low in that will be your Bullish Order Block.
Let me share with you a definition of a bullish order block so you could better understand its deep meaning.
Bullish order block is a significant price zone or a level where large market players (banks, institutions, hedge funds) have previously placed a high volume of buy orders, creating a strong imbalance in demand.
And what is a proof of this strong demand?
A consequent break of structure and a formation of a new higher high demonstrate a clear strength of a bullish wave that was initiated because of the activity of Smart Money.
As the market continues updating Higher Highs , remember to update Order Block. It will strictly be based on the LAST Higher Low.
Examine a price action on NZDUSD forex pair on a daily time frame.
The trend is bullish and our Order Block will be based on the last Higher Low.
To properly draw Order Block zone, its low should be based on the lowest low of a Higher Low. Its high should be based on the lowest daily candle close above a low of a Higher Low.
We will assume that huge volumes of buying orders will accumulate within that zone.
That area will provide a safe zone for us to buy the market from.
Alternatively, its violation will signify an important shift in a market sentiment.
To find a bearish order block, you will need to understand a classic bearish trend model.
According to the rules, that market is trading in a bearish trend if the price consistently updates Lower Lows LL and Lower Highs LH.
Such a price action confirms a downtrend .
The last lower high in that will be your Bearish Order Block.
And here is what exactly is a bearish order block.
Bearish order block is a significant price zone or a level where large market players - Smart Money have previously placed a high volume of sell orders, creating a strong imbalance in supply.
And what is a proof of this strong supply?
A consequent break of structure and a formation of a new lower low demonstrate a clear strength of a bearish wave that was initiated because of the activity of Smart Money.
As the market continues updating Lower Lows, remember to update Order Block. It will strictly be based on the LAST Lower High.
Please, check a price action on NZDCHF forex pair.
The market is trading in a downtrend.
Our bearish order block will be based on the last lower high .
The high of this zone will be the highest high of the last lower high.
Its low will be the highest daily candle close below the last lower high.
That zone will be a critical resistance.
Large selling volumes will be distributed within.
Once that area is tested, we can sell the market from that.
Alternatively, its bullish violation will signify a significant shift in the market sentiment.
Of course, these 2 models will not reveal all the order block on a price chart, BUT it will show you one of the most significant ones that you can rely on for safe entries for your trades.
Just learn a structure mapping in smart money concepts and use that you find powerful order block zones on any forex pair.
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