How to Find the Best Order Blocks for Trading | Smart Money

[00:01] find a nice juicy order block, sit and wait for the price to approach it, open a short position from this zone, and then the price stands at literally one pip, and then the price flies in your direction and you sit in bewilderment. Why did

[00:14] you get a stop again? Why did the price break the order block again? Why is this smartmoney not working? Why can't you find valid zones on paper? You are God yourself, in reality, it's all stops. The answer here is very simple. The whole point is

[00:28] that you simply do not know how to validate order blocks, and in this video I will tell you how to distinguish a military order block from an invalid one, and moreover, I will tell you where to place stops and where to place likes so that your ratio is at least

[00:41] one to two [music] first. Where we will begin our dialogue is with the structure, because it is thanks to the structure that we can determine what a major player is doing at a given moment in

[00:55] time, and by understanding his logic, we can find strong valid zones with a high probability. Let's look at this picture. What we see here is that the price has risen. Now answer this question for yourself. What will you personally do in this situation?

[01:10] This is a trick question because half of the people said to buy and the other half said to sell. They are both wrong here. But there is a third small percentage of traders who will wait for a more understandable

[01:23] situation where the probability is higher than 50/50. Often, after such strong movements, the market goes into a flat so that a large player can either gain or unload his position. Inexperienced market participants either buy

[01:36] lost profits on the sole basis that the price is too high. A certain balance occurs in the market. But you can't make money in the balance. Money is inefficiencies. And these inefficiencies need to be waited for a long time. In this case,

[01:52] everyone makes money. The broker, with Svatov and commissions, earns their percentage, the exchange earns the large player himself, and only the crowd loses here. Moreover, when a flat has formed, a new driver is needed to drive the crowd into a

[02:06] their money just like that when the market balance is in a flask. They tend to make decisions only during strong movements, and here a climax occurs. The crowd rejoices and begins to buy, and the market quickly makes a reversal, and only now,

[02:21] only after this We can assume that if we had an accumulation, there was a false move and a move in the opposite direction, this means that here, most likely, a large player was gaining a potential short position and, moreover,

[02:35] he left us his mark. Only a false takeout is the only thing that gives us an understanding of what is happening. No trend or other technical analysis pattern will give you this, not a double top or head and shoulders. Only a false takeout

[02:49] gives you an understanding of what is happening in the market and, moreover, it shows us where we can enter and where we can place our stop and take. Now, when we see the structure in a new way, everything becomes much simpler for us. The first wave is formed for us,

[03:04] this is the one that made the first impulse and the formation of the boss, that is, the Break of stracture. Then we wait for a correction and enter the third wave with a stop, the takeout is laid down. In this case, our entire Zone will be considered valid for us.

[03:17] Within this zone, there may be dozens of small blocks and from them, the price can also reverse from any of them. We don’t know from which one and we don’t need this because, ultimately, the Stop. We always have a laid down takeout, so

[03:31] what difference does it make which one is valid? A which one is not enough for us to stretch the Fibonacci grid to mark 50 percent and enter from the Discount Market. It doesn’t even matter structure it is. It works on all timeframes. If this is a wreck, then of

[03:46] course it is advisable for us to go a little lower, at least to the hourly chart, and see what is happening there. Find the same pattern, then we can reduce the stop and increase it. In this situation, this entire Zone is valid for us and it can

[03:59] be long with a large false stop, or it can be very short, but it doesn’t depend on the size of the Stop Zone. We always go to a safe place, that is, the set stop, just in one case it will be smaller and in another shorter.

[04:14] But the main thing is that it is correct. If it is long, then in this case you simply don’t enter the trade, or cut the volume, or wait for a smaller setup within this structure [music],

[04:30] but our situation is more complicated. Look at this picture. What we see here is also an ascending chart and the formation of some kind of trading. My time, when I was just studying, I didn’t know what this pattern was called, but now

[04:43] on Smartmoney there is a fashionable name for it. The rally would be Israel or the bazdrop drop, the essence of this does not change because it is hundreds of years old, just with the remote control on the smartphone, all these patterns have more sophisticated names, we return back

[04:56] to the situation again, it is not clear what to do. But you know, such a rally would be Israel, we can assume that from this flat we will get at least a good reaction. And now we again have an unclear situation, we need to understand where we are if

[05:10] we are still far from the sell zone, then we trade the trend. However, if we are in the sell zone on a higher timeframe, then we can count on a reversal, we see a correction, we are forming a kind of boss and now we have a

[05:23] problem where we should short because three waves have already worked themselves out because three waves have already worked themselves out and the boss was formed by the third wave and not necessarily have to be the rally would be Israel pattern; it could just be a

[05:36] regular order block that then breaks in the opposite direction, in this case we have two possible developments. The first is that we enter the fifth wave, the key criterion of the wave is that it should not interrupt the previous

[05:48] wave, accordingly, we have an order block that formed the third wave. We We are waiting for the fourth correction and entering the fifth. Here, our situation is worse than in the previous version, because the three-wave is approximately 70 percent complete, the

[06:02] fifth wave is somewhere around 55 percent, which is a little more than half. Therefore, entering from this order block without additional confirmation is not a good thing. But the smartphone provides us with such a term as inducement, from the

[06:15] English word "bait", and the bait is considered to be the third wave formed because it is what makes the Boss. In this situation, it is much more important to wait for the third version. That is, this update and take the reaction

[06:29] from the first block that started this whole movement. If we look at this situation on a higher timeframe, I understand that in each structure, we have a substructure, we will see a classic three- wave, and the inducement update

[06:43] within the higher timeframe. And only act as a removal of liquidity of the last extreme. Here, it is important to understand that each of these blocks can work itself out, but there are statistics that show that the three-wave

[06:57] works much better than the 5-wave, and it is up to you to trade the fifth wave or skip these transactions. Make it a rule that if you see three or more waves, then in this case we move to a higher timeframe and also look for the Discount

[07:11] Market using Fibonacci and focus on the order block from which the movements in this very discount market began. In this case, the probability of processing is much higher, but there is a risk of simply missing this transaction. But if you decide to

[07:23] trade from news, then trade only with confirmation. It sees the same word structure but on a lower timeframe [music].

[07:36] without which you will not be able to determine valid order blocks. The first order block must necessarily create inefficiency. Here are two examples. The first one is with the formation of efficiency and the second one is without it. The second order block must necessarily

[07:52] it. The second order block must necessarily form a Boss or more accurately. The 3rd order block must be fresh and not processed, since they are one-time and we can only trade the first reaction. We analyzed three reversal scenarios within these

[08:05] reversals. Your task is to find a candle that fits the description above. What to do if the market has already left without correction and we are trading with the trend. Firstly, we must also take into account Premium and Disco Market and also

[08:18] look at this example, this is a very common market behavior. We have an order block and a potential opportunity to enter a long position. However, below you can see that another valid order block that also

[08:31] fits. We have a Break of Tracker and there is inefficiency. In this case, there is a high probability that the first order block acts as an inducement. The price will most likely take its liquidity, close the

[08:45] opposite direction from the second order block. Plus, the second order block is also in the Discount Market zone, so we assign it two points, and the first, on the contrary, we put -1. Here is a completely different example:

[08:59] we have a valid order block. It takes the liquidity of the previous accumulation, forming fuel for future movement. It is in the discount market and, most importantly, there is no liquidity below that the market maker needs.

[09:12] Therefore, it makes no sense for him to go lower. In addition, we see the Base Rally rally pattern. We set this order block + 3 points. The more points the zone gets, the stronger it is. It's that simple. You can create your own system. Points

[09:26] are absolutely unimportant. Here is a real example of the euro dollar hourly, apparently descending, we see a valid order block that created inefficiency and broke the structure, but below you can see support that has already worked

[09:41] several times, which means liquidity has accumulated below. In addition, below there is an order block that also broke the structure and created inefficiency, there is an accumulation of liquidity, the price is in the discount market. In total, the first killer

[09:54] scored 0 points with us, so we consider him an Indian man, and the second scored 3 points with us. An important point: every time you encounter a losing some error was made in your analysis. Remember that no strategy on the

[10:09] market works 100%. We cannot control the market, we can only trade probability. The simplest thing is points. The more points, the higher the probability. [music] The

[10:22] second factor is volatility. From experience, I can say that most profile trades occur on days and sessions with high volatility. Usually on the first and last days of the week, the market suffers from low liquidity, so often

[10:35] most profits come in the middle of the week. Trade only at the opening. Europe and America, since this is the time of greatest volatility in the market, another important factor when trading order blocks is how to

[10:49] work with spreads. In many cases, the market reacts to blocks within one singer, therefore, due to the high spread on the pair, you can simply miss a lot of profit or, on the contrary, get a stop loss when the price has not even

[11:01] touched it. The presence of a narrow spread is extremely important for a Forex trader, therefore I recommend the broker npb FX. I trade with him myself. He has the ability to deposit and withdraw cryptocurrency. Absolutely no commission. Moreover, using

[11:14] my link, you can open an account with zero spreads and without words forever. Since I am a partner, I can provide you with this opportunity because you will not find it anywhere else. The link is in the description

[11:26] The link is in the description [music]. happen is when we see a similar situation and do not understand where to trade because it is not possible to determine a clear order blog. In this case, we

[11:41] move to a higher timeframe so that visually we do not have so many candles and so that nothing distracts us. Then we mark the order block by On a higher timeframe, then on the Fibonacci grid, we measure the Discount Market. If the price

[11:54] breaks through 50 percent, we hit the Discount marker, and anything below is will always enter from a higher timeframe because we are always looking for the first resistance zone on a lower one. We cannot find it; we have no choice

[12:09] but to look for it on a higher timeframe. But here, it is also important to make sure that this zone is on the higher timeframe. Discount Market. In this case, we must also understand that Stop Loss will be gigantic, and there is no point in

[12:22] trading such a long stop. Therefore, we wait for a three- wave setup to form within this one, and enter with a smaller stop. This will allow you to reduce the stop and increase the take profit. And finally, I want to

[12:35] tell you that there is no such clear understanding as a military order block. Most likely, if you are constantly closed by a stop, then the problem is not the order blocks. The fact is that you are simply setting the stop loss incorrectly. Analyze your actions. The stop

[12:48] can only go as planned. If you are constantly If it takes out, it means that you are placing it somewhere else, and secondly, let me remind you that we are traders, not Nostradamuses. We do not have the goal of finding a valid order blog. We have a different task, which is

[13:01] to find a highly probable zone according to the points system from which we will make decisions. Our task is also to cut out all the garbage that is on the market and leave only those situations that are understandable to us and which we can trade.

[13:15] If we do not understand what is happening, then simply do not trade this situation, that's all I need to look for a valid order blog. On the contrary, I need to abstract myself and close the terminal. Maybe someone else understands this situation, but most likely

[13:28] it is not you. If you want to clearly learn how to determine why they work, how they are built at the molecular level, then be sure to watch this video. I also wrote an interesting article on all the

[13:41] order block options that exist. The link is in my Telegram channel. Go to it. Go to the pinned messages and there in the articles section you will see an article on the correct construction of order blocks. The link to the

[13:53] construction of order blocks. The link to the Telegram channel is also in the description.