The document discusses the characteristics of tradable versus non-tradable order blocks. Tradable order blocks must meet several criteria: 1) be located at or near support/resistance, 2) be at or near a flip zone, 3) break the prior market structure, 4) have an imbalance after formation that is at least twice the size of the order block with a risk/reward ratio of at least 3:1, 5) take out an opposing order block, and 6) be above the session start for bullish blocks and below for bearish blocks. Non-tradable order blocks do not meet these defined criteria.
The document discusses the characteristics of tradable versus non-tradable order blocks. Tradable order blocks must meet several criteria: 1) be located at or near support/resistance, 2) be at or near a flip zone, 3) break the prior market structure, 4) have an imbalance after formation that is at least twice the size of the order block with a risk/reward ratio of at least 3:1, 5) take out an opposing order block, and 6) be above the session start for bullish blocks and below for bearish blocks. Non-tradable order blocks do not meet these defined criteria.
The document discusses the characteristics of tradable versus non-tradable order blocks. Tradable order blocks must meet several criteria: 1) be located at or near support/resistance, 2) be at or near a flip zone, 3) break the prior market structure, 4) have an imbalance after formation that is at least twice the size of the order block with a risk/reward ratio of at least 3:1, 5) take out an opposing order block, and 6) be above the session start for bullish blocks and below for bearish blocks. Non-tradable order blocks do not meet these defined criteria.
The multiple timeframe analysis within your timeframe matrix together with the following rules:
CHARACTERISTICS OF TRADABLE ORDER BLOCKS
1. OB SHOULD BE AT/NEAR SUPPORT/RESISTANCE
2. OB SHOULD BE AT/NEAR FLIP ZONE (Good for reversal entries) 3. OB MUST BREAK THE MARKET STRUCTURE 4. IMBALANCE AFTER CREATION OF OB MUST BE 2 TIMES THE OB + RISK REWARD [RR] MUST BE 3 TIMES THE OB 5. THE OB MUST TAKE OUT AN OPPOSING OB 6. BERISH OB MUST BE ABOVE SSR AND BULLISH OB MUST BE BELOW THE SSL 7. BULLISH OB ABOVE EQH. 8. BEARISH OB BELOW EQL.
1. O/B NEAR A S/R ZONE
2. OB NEAR A FLIP ZONE (FZ)
3. OB MUST PRECEDE A MSB
4. IMBALANCE AFTER THE OB IS FORMED MUST BE 2 TIMES THE OB