ORDER BLOCKS / POI

Understanding and application

Order blocks act as the main POIs (Points of interest) when trading.
When we identify order blocks, we are looking for the “footprint” or “clues” of where
“smart money” is entering the markets. Once we have identified order blocks, we wait
for those order blocks to be mitigated (retested).
There are some key requirements that order blocks must fit to actually be valid order
blocks.

1. Break some sort of market structure (major/minor)

2. Take liquidity
3. Have a liquidity objective

There are two main forms that order blocks come in

Higher Probability Order Blocks

1. Induced lows/highs above/below the order block (THAT DONT AFFECT THE
MAJOR MARKET STRUCTURE)
2. Order block takes EQUAL POINT liquidity
Application
Once you have your areas, and there is an induced liquidity point you can use a risk
entry and enter immediately after the sweep OR wait for a LTF break of structure as
shown in the following image (confirmation entry)

How to isolate POI's with correlating Fibonacci levels

Following impulse and structure change, using fibonacci levels on the retracement we
can isolate the optimal OB to execute our trade.

Below shows the way in which we wait for LTF structure inside of HTF POI to find our
point of sync.

BULLISH SCENARIO
 BEARISH SCENARIO

ORDER BLOCK REFINEMENT 

By marking 50% (the average volume) of our POI's we are able to better refine them
improving our R:R significantly.
Here is another example with a HTF POI, using the fib tool measure 50% of the OB for
a refined edge.
Made on Ti l d a