Block of Orders to Sell (BeOB)
①Finding the Highs of Market Swings (Waves)
②find the highest priced foot in the swing
③The entire bar with the highest price (high price to low price) will be the order block
The point is that the entire bar with the highest price of the wave becomes an order block.
As you can see in the chart above, orders block more reliably when there is a strong drop following the highest bar. Conversely, if the downward wave is weak, the reliability as an order block will decrease.
Also, it is easy to function as a sell order block when the market is in a downtrend and the low price is renewed after the order block is formed.
Be aware that sell order blocks that occur during an uptrend are often broken.
Block of Orders to Buy (BuOB)
①Find the low of a market swing
②find the lowest priced foot in the swing
③The order block is the entire bar with the lowest price (high price to low price)
The idea is opposite to sell order block.
Order block strength
With the method introduced this time, the order block will always exist at the top and bottom of the market wave.
Then, will all the order blocks rebound strongly? That's not the case if you ask me.
As shown below, there are strong order blocks and weak order blocks depending on the trend direction of the market.
By reading these well, you will be able to know the market situation in more detail, and you will be able to enter with a high winning rate, low risk, and high return at the point where the market starts to move positively.
