📝Order Blocks /// Supply & Demand
Order blocks are found all over a price chart on all timeframes.
An orderblock simply indicates a large grouping of orders placed at a specific price level.
🧵Detailed in thread.👇
Order blocks are found all over a price chart on all timeframes.
An orderblock simply indicates a large grouping of orders placed at a specific price level.
🧵Detailed in thread.👇
🪙The sheer size of these orders cause price to impulsively move away due to large volume being traded.
A key thing to note about order blocks is that the impulsive move should break structure to be considered valid and high probability.
A key thing to note about order blocks is that the impulsive move should break structure to be considered valid and high probability.
🪙Institutions that place large orders often are not able to facilitate their full positions at one time before price rapidly moves away.
Because of this, price gravitates back to these order blocks to facilitate the remaining orders only once the supply/demand is rebalanced.
Because of this, price gravitates back to these order blocks to facilitate the remaining orders only once the supply/demand is rebalanced.
🪙Because price rapidly moves away from that area it forms an imbalance in price as it needs to seek liquidity.
📝Price will eventually gravitate back to that orderblock to collect the final liquidity resting at that area before continuing in the direction of the impulse.
📝Price will eventually gravitate back to that orderblock to collect the final liquidity resting at that area before continuing in the direction of the impulse.
We use orderblocks as a framework to enter trades either long or short depending if it is a bullish or bearish orderblock.
We are looking to execute buy/sell entries when price mitigate the bullish orderblock/ the bearish orderblock.💰💡
We are looking to execute buy/sell entries when price mitigate the bullish orderblock/ the bearish orderblock.💰💡
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