Just been diving deeper into order block strategy lately, and honestly it's one of those concepts that seems simple on the surface but hits different once you really understand it.



So what's the deal with order blocks? Basically, they're supply and demand zones that show up right before price makes a strong move. Think of it as the last significant candle that rejected the price before things swing hard in one direction. The beauty of ob in trading is that it gives you a concrete area to hunt for reversals or continuations, not just vague support/resistance levels.

There are two flavors here. Bullish Order Block (BuOB) is that last bearish candle sitting near support before price rockets up. You'll often see a strong bullish engulfing follow right after it. On the flip side, Bearish Order Block (BeOB) is the final bullish candle near resistance before price crashes down, typically followed by a bearish engulfing.

How do you actually trade order block setups? In uptrends, you're watching for BuOB to set your entry point. In downtrends, you're hunting BeOB. The entry, stop loss, and take profit placement follows the candle structure pretty logically once you see a few examples.

Now here's the thing though - order block trading isn't a standalone strategy. You need to understand market structure and how price actually behaves. Just blindly trading every ob you see will drain your account real quick. The real edge comes when you combine order block analysis with broader market context.

The core takeaway: OB is basically a strong supply-demand zone that forms right before explosive moves. You're buying when price hits bullish OB during uptrends, selling when it hits bearish OB during downtrends. Simple concept, but the execution and timing is where most traders struggle.

Obviously this is just sharing what I've learned - definitely do your own research and backtest before risking real capital on any strategy.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin