Order Block Secrets — Full Breakdown & Transcript

[00:00] stuck with the decision on which one to trade. Now this is actually a very important decision.   Do you trade this orderblock? Yeah, you could,  but it turns out, it was too weak and price broke  

[00:14] Well, maybe you trade the lowest orderblock?  That would make sense. Since it s the lowest,   come all the way down to this one, so if you were  waiting for it, you would miss out on this trade.   multiple traders face every single day. And If you don t how to pick the correct  

[00:31] orderblock, you can lose a lot of money. Well I wanted to find a way to pin point   the best orderblock possible. To be able to find the orderblock  

[00:43] that had the best probability of working. To do this I had to do a lot of research,   a lot of backtesting, and a lot,  and I mean a lot of analysis.   That will instantly identify which  orderblock to choose. That gives you  

[01:00] the highest probability of it working. So how do we find the strongest orderblock?   Whenever a chart is moving in a clear direction. In this case bullish.   A lot of the time there will  be multiple zones to buy from.  

[01:15] We have an inducement zone,  and we have our true zone.   Now if we look up the definition of inducement. It  will tell us that it means a thing that persuades  

[01:28] or influences someone to do something In other words, a trap.   Now there are multiple ways to look at this,  but Its basically an area that looks good for   an opportunity to the normal person but in  reality, it s a weak zone that won't hold.  

[01:42] So often times price will come back  down to this zone and induce traders   into thinking it s a strong zone to enter in. But what often happens is price will trick traders   to enter into these inducement zones. When in  reality its not a strong zone at all. Giving all  

[01:57] the traders that entered into it, a big ol fat L. But what really ends up happening is price   goes past this inducement zone  and goes into the true zone.  

[02:10] Which is actually strong enough to  hold, and price moves up from here.   Now you might be thinking, how do we know  that this zone is the inducement zone.   Well this comes down to two things. Liquidity and imbalance.  

[02:22] An imbalance is simply an area on  the chart that hasn t been tested.   So in this example we have an imbalance  right here right below this lower zone.   If price did something like this, sure, now THIS  zone would be good to trade off of because we don  

[02:39] t have an imbalance below this lower zone But that did not happen.   We do have an imbalance, which price will  naturally want to test where there is liquidity.   right here from the buyers who want to enter  in this zone. There will be sell stops from  

[02:57] sellers who are looking for a breakout trade right  here. Then there will be a significant amount of   orders in this zone from institutions. We know this is an institutional zone   because the move started from this zone  and as we all know price is moved by big  

[03:11] institutions. Not by retail traders. Okay, fk that stupid line stuff.   going to make you money. Let s go to a real life example.  

[03:27] I made a video the other month saying I was going  to try to use hankotrades copy trading feature.   Where you can copy professional  analysts by simply clicking a button   Now when they first asked me to test this, I was  a little skeptical at first, im not going to lie.  

[03:41] But I decided I wanted to test it out for myself. What I did, was clicked this top performing   section so I only saw the top performing analysts I then saw this this guy that had a 86% win   I tested this by depositing  $50,000 around a month ago.  

[03:58] That $50,000 is now $160,000. Just from clicking a follow button.   on Instagram on how the copytrading is doing. But in the meantime, If you want to test the  

[04:16] copy trading feature too, ill leave a link  in the description so you can check it out.   Okay lets go back to a real life  example using the strategy.   So here on this chart we have a simple uptrend. We have higher highs, and higher lows.  

[04:29] During this uptrend, the chart made multiple  zones we could potentially buy from.   We have one demand zone right here. We have zone 2 right here.   And we have a 3rd lower zone down here. So let me ask you a question.  

[04:41] Which of these zones would  you choose to buy from?   Would it be zone 1, 2, or 3? A simple question, I know.   you a profitable trade or losing trader. Well right away when looking at this chart.  

[04:58] an area of imbalance right below this zone. And like I said before, price is naturally   going to want to test this imbalance. Which means, in order to do that,  

[05:10] its going to have break this zone. Which also makes this our inducement zone.   That leaves us with just 2 zones to choose from. Now you may be thinking it s this one.  

[05:23] Considering what I just said, theres an  imbalance right below zone number 2.   And it s the lowest zone, which  probably means it s the strongest.   It looks really good. But what if I told you, your wrong.  

[05:39] So look at this chart. Price has a low right here.   We have a higher high right here. We came down, we formed this higher low.   Then we came back up and made this high. But this high is not an actual high.  

[05:55] while trying to break this previous  high. It barely just wicked over it.   Which means, this zone right here wasn t  strong enough to really break this high.   But if we look closely, the zone that actually  did end up breaking this high, was zone number 2.  

[06:11] strong as it appears to be. But this zone in the middle,   3 and truly focus on the strongest zone. So what we are looking for is price to break  

[06:27] After breaking this inducement zone trap. We want to see price head towards are true zone.   Right now, we are on the 1 hour time. So we are going to choose the 15  

[06:41] in our zone. We wait for price to play out. We want to see a break of structure showing a   structural shift, from a downtrend to an uptrend. Which there is one right here. Good.   Then we want price to head downwards  towards an imbalance on our chart.  

[06:56] Which there is an imbalance right here. Wait for price to come to our imbalance.   Set your stop loss below this low. And set  your take profit at the previous high.  

[07:08] But before we actually enter into this trade,  I have something very important to do.   To Send this trade to my FREE newsletter. Yes, before I found this exact trade. I sent   it to my newsletter right before I entered. And all the people in that free newsletter got  

[07:22] to enter into this trade with me. It also has some insane secret   information about the market as well. And the best part is, its absolutely   And just like that we got  a winning trade.