An order Block(OB) is a specific price level where the institutions have left their orders and price will come later and collect those orders. When price reach an OB, we want to see it quickly move away if price consolidate that means there is no institutional sponsorship meaning that the OB is most likely to fail.
As we have said an OB is a specific price level where the institution or smart money traders have left their order therefore if price gets to the level we have identified as an Order Block we have to see price quickly moving away volatile indicates that large funds are being moved.
How to trade order blocks
OB trading concept is part of institutional trading therefore it is not advised to trade order blocks or take trades with order blocks alone, make sure you understand order flow, fair value gaps, liquidity pools, liquidity voids, and rejection blocks, etc, this will result in high probability trading concept. for more on how to trade order blocks kindly subscribe to our blog for more.
This few examples of trading ideas that were shared on our instagram account based on order blocks trading concept
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