Price Action Principles - Trading a Range

Module 2
Orderblocks, Breakers, & Fib Dynamics

@Mindset_BTC
Disclaimer

Please note that any trades shown in the following content are for educational purposes only;
Any risk taken in following trades or setups that are shown for educational purposes is entirely borne by you, with no assignment of
responsibility placed on me, MindsetBTC;
I am not a financial adviser, and as such, will not provide advice that could be construed as specific in nature. Rather, this advice is
intended to be general in nature as an education and entertainment resource;
I do not recommend the purchase of any trading pair, investment, ticker, or any other financial instrument that could appreciated or
depreciate, and as such, will not be held liable for users investments, good or bad;
Do not blindly follow trading calls by anyone. Instead, do your own research;
Past performance is not a guarantee of future results;
and;
This content is strictly provided for educational & entertainement purposes (in case I didn't mention this already)
Acknowledgement
I would like to acknowledge the people who have had a massive influence on me as a trader, some of whom I would call mentor, others who have inspired me
to take action against no one else other than myself in improving and learning everyday

The 2017/18 Market - you gave me the hunger to learn how to trade after getting my arse kicked by you!

Crypto Cred - your videos and educational content are what set me off down the rabbit hole of learning how to trade

Trader Mayne - after finding your Discord, and observing through your public streams and charts etc that we had a similar learning
experience with trading, I dusted off my 2017/18 trading wounds and got back into the saddle

Rektproof - a PA legend who truly inspired me to take action through his public content and approach to trading. Truly.

Emporer BTC - No thanks are enough. He gave me a 'voice' to share my passion of trading and eduction with you all, and am forever
grateful for this

Inner Circle Trader - the man is truly a legend who I learned many concepts from, many of which are shared in this educational series.
Many hundreds, if not thousands of hours spent digesting his material has helped me put this course together for you
The Goal of This Course
It's to explore, in depth, each individual relevant puzzle piece that are in my opinion critical in gaining a framework of understanding
with regard to Price Action trading, particularly, trading a range

As a recap, we'll be exploring the below in the form of modules:

Market Structure & Fibonacci

Orderblocks, Breakers & Fibs (this module)

Value Area Trading & Volume Profile Tools

Ranges & Liquidity Targets

Trade Management

Putting it All Together

With that being said, let's get into the course

Agenda:

Part 1 - Orderblocks
What is an Orderblock (OB)
Bullish OB's
Bearish OB's
OB Examples

Part 2 - Breakers
What is a Breaker
Bullish Breakers
Bearish Breakers
Breaker Examples

Part 3 - Fibonacci Dynamics

Fib Set Up recap
Market Structure Break recap
Fib Set Up Bullish & Bearish Orderblocks

Self Learning
Conclusion
 Part 1
Bullish & Bearish
Orderblocks
What is an Orderblock?

I first encountered the concept of an Orderblock (OB) when digesting hundreds of hours of Inner Circle Traders videos on Youtube
The idea and concept of it all blew me away, although it seemed pretty apparent after you understand what you're looking for
The way that can essentially describe an OB is where larger players (whales, institutions, whoever) have orders laying in wait for price
to return to a level they are interested in
If they market bought at these levels, they essentially 'give' their game away and move the market too much which would affect their
trading plan or regime in the market
Price will hit or return to these OB levels, and then move quickly away from them as the market moves in excitement after such big
supply or demand is encountered
We'll see an impulse move up or down away from the OB, where retracements to entry become very palatable for trade entry
Bullish OB's are red candles, and bearish OB's are green candles before said impluse moves up or down
It's also worth noting that like price in general, Orderblocks can be found replicating on each and every timeframe, so we'll find
Orderblocks on the 4H, and within this overall timeframe, we'll find many more Orderblocks to capitalize on
Let's take a look at an example or two as it's no doubt confusing for you

OB = bullish or bearish candle before

an impulse move up or down
Bullish Orderblocks

BTC
Bullish Orderblock
1D
Bullish Orderblocks (Cont'd)

BTC
Bullish Orderblock
4H TF
Bullish Orderblocks (Cont'd)

BTC
Bullish Orderblock
15M TF
Bullish Orderblocks

Are down / bearish candles that reacts in a bullish impulse move upwards when price trades down to it
Why though?

When you think about it, it comes down to supply, demand, and....humans
Price rallies off after hitting an area of interest / where a retrospective order block is now founded
Price returns to this level where many orders are resting at an area of interest
A large buy wall sits in waiting (in the form of an order block), where smaller market participants see this buy wall and front run it
to get their long orders in
As price takes off, this causes a shift in market structure as buying sentiment changes
We now experience positive price movement and eventual trend change

Bullish OB = a bearish candle before

an impulse rally to the upside
Bearish Orderblocks

BTC
Bearish Orderblock
15M TF
Bearish Orderblocks

MATIC
Bearish Orderblock
4H TF
Bearish Orderblocks

ETH
Bearish Orderblock
15M TF
Bearish Orderblocks

Is an up / bullish candle that reacts in a bearish impulse move downwards when price trades up to it
Why though?

When you think about it, it comes down to supply, demand, and again, humans
Price sells off after hitting an area of interest / where a retrospective order block is now founded
Price returns to this level where many orders are resting at an area of interest
A large sell wall sits in waiting (in the form of an order block), where smaller market participants see this buy wall and front run it
to get fill their short positions, or sell off
As price sells off, this causes a shift in market structure as selling sentiment changes
We now experience negative price movement and eventual trend change to the downside

Bearish OB = a bullish candle before

an impulse rally to the downside
 Part 2
Bullish & Bearish
Breakers
What is a Breaker?

Similar to Order Blocks, Breakers were something that I first encountered when watching ICT's videos
A Breaker Block in my view is essentially a previous bullish or bearish orderblock, that has been traded through, and now forms as
support or resistance
Let's take a look at an example or two as it can be difficult to visualise

Breaker = bullish or bearish OB that fails to hold,

where price trades through, and then flips to act
as support or resistance
Bullish Breakers

BTC
Bullish Breaker
15M TF
Bullish Breakers

BTC
Bullish Breaker
5M TF
Bearish Breakers

BTC
Bearish Breaker
(Weak)
15M TF
Bearish Breakers

ETH
Bearish Breaker
(Strong)
4H
Bearish Breakers

BTC
Bearish Breaker
15M TF
 Part 3
Fibonacci Dynamics
Fibonacci Dynamics

In the previous module to this one, Market Dynamics & Fibonacci, the concept of Entry Fibs was introduced where we explored the
Anchor Points, Entry Levels, and then Target Levels too

What we'll now do is combine the Entry fibs with Orderblocks and and Breakers as ICT intended

In doing so, we'll be able to cover in detail where the most logical sense to place the Anchor Points on the fib tool based on the
expectation that we'll see a retracement to the Entry Levels again

I want to be clear in saying that these are ICT's concepts that I use. I'm sharing them here, not to claim credit for them by any means,
but to share with you what tools work best for me when trading a range

The outcome of the course is to build an understanding of each component part of trading a range as I see it, and this concept is
simply one of those.

With that being said though, let's crack on with a quick recap of setting up the fibs (for ease of reading / not having to cross check a
previous module), followed by exploring the dynamic relationship of Fib levels and Orderblocks & Breakers
 2
Entry Fib Setup (Recap from Module 1)

1) First Select the 3rd item down on the left hand side
menu
Then select "Fib Retracement"

2) Open up the settings of the Fib Retracement Tool

(second image to the right), then enter the Fib levels
in, and make sure that the box is checked for them too

Note that I personally prefer to have no

background, I don't select the reverse or price
options, and that I have levels selected, with labels
on the right, but in the middle

1
Entry Fib Background (Recap from Module 1)
Bullish Fib Set Up Bearish Fib Set Up
Let's delve into the background of the fibs

Here we show the full suite of fibs in

coloured boxes

These can be broken down per the below:

Anchor levels being the '1' and the '0'
(light orange, and teal respectively)
The trade entry levels of 0.618, 0.702, &
0.786 (yellow)
And the target levels of 0.28, 0,-0.27,
-0.618 & -1 (green, blue, purple, pink)

One thing to note with these Fib levels are that

they are percentages of a move, ie if pulling a fib
from a swing low to a high (100% to 0%), and
price retraces to the 0.702 level.

This in essence means that price has retraced by

70.2% from where you had pulled your fib set up
to and from
Market Structure Breaks (MSB's) (RECAP, Module 1)

A Market Structure Break (MSB) in my opinion, is where a previous swing high or swing low (applies to all timeframes) is run past /
violated / trade above, through, or below to cause a change or shift in trend or market sentiment
MSB's are one of the key components that make up the basis of this course

Bullish Market Structure Break

For a bullish MSB at a reversal point, price would run up through a previous swing high, where we would expect retracement back to
support prior to price rallying off
For a bullish MSB as a trend continuation, we expect price to keep beating previous swing highs in the newly formed or ongoing trend

Bearish Market Structure Break

For a bearish MSB, price would retrace through a previous swing low, where we would expect retracement up to resistance prior to
price selling off
For a bearish MSB as a trend continuation, we expect price to keep beating previous swing lows in the newly formed or ongoing trend
Order Blocks / Fib Dynamics 1D - Bullish

From the examples shared at the start of

this module, we'll build upon the concept
of Entry Fibs and Orderblocks

In the image to the right, you'll see that

there well and truly is an OB that shows
price reacting at that level

What we'll now do in the next slide is

show the relationship with the Entry Fibs
applied
Order Blocks / Fib Dynamics 1D - Bullish

Here we show the Entry fib set

up, with Anchor Points from the
swing low before the impulse
move up, and also the swing
high at the top of the overall
move

Just note how price falls back

into the Entry Levels of the Fib
tool

It's critical though that you use

the swing low BEFORE an
impulse move up for this
technique to work.

In this example, based on BTC

hitting an ATH, there is no
overall reference to a MSB to
use in this case which develops
on your trading idea for
directional bias
Order Blocks / Fib Dynamics 4H - Bullish

Following on from the 1D example,

please refer to the chart on the right
that was previously shared that
shows an Orderblock & reactions to
the OB
Order Blocks / Fib Dynamics 4H - Bullish

Same as the 1D example, we

have a swing low before an
impulse move

We would then anchor our fibs

onto this swing low as shown,
up to the swing high

Just note how price falls back

into the Entry Levels of the Fib
tool

It's critical though that you use

the swing low BEFORE an
impulse move up for this
technique to work
Order Blocks / Fib Dynamics 15M - Bullish

Following on from the 4H example,

please refer to the chart on the right
that was previously shared that
shows an Orderblock & reactions to
the OB
Order Blocks / Fib Dynamics 15M - Bullish

Same as the 4H example, we

have a swing low before an
impulse move

Note that we are typically

looking for a MSB to occur prior
to looking for an entry. We then
pull our Anchor Points as
shown here

We would then anchor our fibs

onto this swing low as shown,
up to the swing high

Just note how price falls back

into the Entry Levels of the Fib
tool

It's critical though that you use

the swing low BEFORE an
impulse move up for this
technique to work
Order Blocks / Fib Dynamics 15M - Bearish

Similar to the Bullish examples that have

been shared, let's also explore some
Bearish examples

In the image to the right, you'll see that

price trades up and to some previous
resistance, then down, breaking some
market structure

What we'll now do in the next slide is

show the relationship with the Entry Fibs
applied
Order Blocks / Fib Dynamics 15M - Bearish

In this example, we would

anchor our fibs onto this swing
high as shown, down to the
swing low, as this is the
opposite set up to a Bullish
Orderblock

Note that we are typically

looking for a MSB to occur prior
to looking for an entry. We then
pull our Anchor Points as
shown here

Just note how price rallies back

up to the Entry Levels of the
Fib tool

It's critical though that you use

the swing high BEFORE an
impulse move up for this
technique to work
Order Blocks / Fib Dynamics 4H - Bearish

Here we have MATIC on the 4H showing

how price interacts with a Bearish
Orderblock once price trades back up into
it

We see price quickly trade up to this

Orderblock, but the a prolonged
retracement to what was most likely a
Bullish Orderblock
Order Blocks / Fib Dynamics 4H - Bearish

In this break down of Fib

dynamics, we have a swing
high, with an impulse move to
the downside

We would then anchor our fibs

onto this swing high as shown,
down to the swing low

Note that we are typically

looking for a MSB to occur prior
to looking for an entry. We then
pull our Anchor Points as
shown here

Just note how price rallies back

into the Entry Levels of the Fib
tool

It's critical though that you use

the swing low BEFORE an
impulse move up for this
technique to work
Order Blocks / Fib Dynamics 4H - Bearish

Finally, this example shows a Bearish

Orderblock on ETH, 15M timeframe

Look how after a series of swing lows

were beaten, that price continues to rally
up to Bearish Orderblocks for rejection at
these levels

Price continues to do so until demand

outweighs supply that results in a rally
past these prevous resistance points
Order Blocks / Fib Dynamics 15M - Bearish

In this break down of Fib dynamics,

we have a swing high, with an impulse
move to the downside.

In this example, we observe the fact

that a MSB has occured, but not
specifically in line with the move we
are looking for (ie it is placed 2 x
swing lows back)

What this example shows is that

although you may enter on a weak set
up and still find that a trade can work

We would then anchor our fibs onto

this swing high as shown, down to the
swing low

Just note how price rallies back into

the Entry Levels of the Fib tool

It's critical though that you use the

swing low BEFORE an impulse move
up for this technique to work
Self Learning

You would now have somewhat of an understanding of Order Blocks, Breakers, and Fibonacci Dynamics

The trick is to train your eye in spotting them as they unfold on the chart as they will offer extremely valuable insights
into where the support and resistance lies for trade entry and exits

So go ahead and mark up a few of each, try to explore and find them on a suite of charts.

When looking for an entry, we usually use a MSB as a determination that there is a trend continuation or perhaps a
reversal (refer to the trend reversal section in Module 1)

NOTE - my personal approach is in trading a limited number of charts - 8 or so, but 10 max
Humans struggle beyond managing 10 things, and there truly is no point in reducing an edge by taking too much on
from a watchlist perspective
Conclusion

I want to be very clear in saying that I personally first encountered these concepts from Inner Circle Trader. If you want to explore his learnings
in more detail, head on over to his YT channel.

Remember, the purpose of this course is to help you build a framework of your own understanding in order to approach Price Action trading
from a structured perspective in the fashion that I find most easiest based on what I've learnt.

Still to go in this course:

Market Structure

Orderblocks, Breakers, & Fib Dynamics

Value Area Trading

Ranges & Liquidity Targets

Trade Management

Putting it all together

Contact

Twitter @MINDSET_BTC

Telegram T.ME/MINDSET_BTC

Youtube https://www.youtube.com/c/MindsetBTC