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Order Block Theory - Institutional Trading Method

  • #261
  • Nov 5, 2021 2:57pm Nov 5, 2021 2:57pm
New here. Can anyone tell me how long an institution may take to mitigate one of their positions?

Is it possible for them to take years or even decades in order to mitigate a monthly or weekly order block?

Thanks to anyone that can help
  • #262
  • Nov 6, 2021 1:08am Nov 6, 2021 1:08am
Quoting TradebyTy23
New here. Can anyone tell me how long an institution may take to mitigate one of their positions? Is it possible for them to take years or even decades in order to mitigate a monthly or weekly order block? Thanks to anyone that can help
As per my understanding, following ICT, there isn't a " set time " for SM mitigate their positions...Smart Money has deep deep pockets so their trades can be way underwater for a long period of time...sometimes " they " don't extend price a lot and don't take to much time to mitigate/reverse " their " positions.

And it's also relative to the time chart you're studying...

You'll need more tools in conjuction to determine when it's more likely to happen...

Sorry for any misspelling, English isn't my native language
  • #263
  • Nov 8, 2021 2:14pm Nov 8, 2021 2:14pm
Quoting MM-MineMan
{quote} As per my understanding, following ICT, there isn't a " set time " for SM mitigate their positions...Smart Money has deep deep pockets so their trades can be way underwater for a long period of time...sometimes " they " don't extend price a lot and don't take to much time to mitigate/reverse " their " positions. And it's also relative to the time chart you're studying... You'll need more tools in conjuction to determine when it's more likely to happen... Sorry for any misspelling, English isn't my native language

Thanks for your input
  • #264
  • Nov 16, 2021 9:01am Nov 16, 2021 9:01am
Quoting TradebyTy23
New here. Can anyone tell me how long an institution may take to mitigate one of their positions? Is it possible for them to take years or even decades in order to mitigate a monthly or weekly order block? Thanks to anyone that can help
Here's an exemple with a 15min TF chart

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2021-11-16 15.59.36.png Size: 175 KB


As you can see in this screen shot of today's price action, cable went up to 1.3472, if you look at a 4H TF chart you'll see the Mitigation Block from day 7 of present month...
Price took around 4 days ( 4 days = time that price was bellow that Order Block ) to mitigate that 4H block.
In this 15min TF I can see price allowing mitigation 2 times already
  • #265
  • Nov 22, 2021 10:08pm Nov 22, 2021 10:08pm
Attached OrderBlock indicator is coded based on the only clear description that I've seen - and I have seen quite a bunch!
Attached Image (click to enlarge)
Click to Enlarge Name: GBPCAD - 2021.11.22.gif Size: 19 KB


If you want to request for some modification, kindly:
1) Properly describe the condition(s) that should be met before an area can be considered as an OB
2) Use a chart to show when the conditions have been met - just giving the pair/date/time will be OK, but screenshot is best.
3) Explain how you intend to use the indicator in your trading.

Green pips to everyone!
Attached File(s)
File Type: ex4 OrderBlock.ex4   12 KB | 2,110 downloads
  • #266
  • Nov 22, 2021 11:43pm Nov 22, 2021 11:43pm
Quoting Kafin
Attached OrderBlock indicator is coded based on the only clear description that I've seen - and I have seen quite a bunch! {image} If you want to request for some modification, kindly: 1) Properly describe the condition(s) that should be met before an area can be considered as an OB 2) Use a chart to show when the conditions have been met - just giving the pair/date/time will be OK, but screenshot is best. 3) Explain how you intend to use the indicator in your trading. Green pips to everyone! {file}

God bless you sir
  • #267
  • Nov 23, 2021 8:55am Nov 23, 2021 8:55am
Quoting Kafin
Attached OrderBlock indicator is coded based on the only clear description that I've seen - and I have seen quite a bunch! {image} If you want to request for some modification, kindly: 1) Properly describe the condition(s) that should be met before an area can be considered as an OB 2) Use a chart to show when the conditions have been met - just giving the pair/date/time will be OK, but screenshot is best. 3) Explain how you intend to use the indicator in your trading. Green pips to everyone! {file}

Bro, I noticed the indicator does not automatically update itself except one changes timeframe
  • #268
  • Nov 23, 2021 11:20am Nov 23, 2021 11:20am
Quoting Kafin
Attached OrderBlock indicator is coded based on the only clear description that I've seen - and I have seen quite a bunch! {image} If you want to request for some modification, kindly: 1) Properly describe the condition(s) that should be met before an area can be considered as an OB 2) Use a chart to show when the conditions have been met - just giving the pair/date/time will be OK, but screenshot is best. 3) Explain how you intend to use the indicator in your trading. Green pips to everyone! {file}

Please I think the indicator lags few bars and does not update except you change timeframe. Please Can something be done about that sir? Also, it will be nice if one can edit/modify the settings hence an "mq4 version" will be great
  • #269
  • Nov 23, 2021 1:01pm Nov 23, 2021 1:01pm
Quoting MM-MineMan
{quote} Here's an exemple with a 15min TF chart {image} As you can see in this screen shot of today's price action, cable went up to 1.3472, if you look at a 4H TF chart you'll see the Mitigation Block from day 7 of present month... Price took around 4 days ( 4 days = time that price was bellow that Order Block ) to mitigate that 4H block. In this 15min TF I can see price allowing mitigation 2 times already
Yes I definitely understand order blocks being mitigated on a 15 minute timeframe. Im wondering about the the ones on the Monthly and Weekly chart that are 2-5 years old possibly. Meaning that an institution would have held an order open for that long...it just seems unlikely but if its possible I would really like that information.

Thanks
  • #270
  • Nov 23, 2021 2:26pm Nov 23, 2021 2:26pm
Quoting SimpleBoy
{quote} orderblock , what OTE stand for ?
OTE - Optimal Trade Entry
BSL - Buyside Liquidity
SSL - Sellside Liquidity
OB - Order Block
+OB - Bullish Order block
-OB - Bearish Order block
PB - Propulsion Block
VB - Vacuum Block
MB - Mitigation Block
BRK - Breaker
+BRK - Bullish Breaker
-BRK - Bearish Breaker
FVG - Fair Value Gap
BISI - Buyside Imbalance Sellside Inefficiency
SIBI - Sellside Imbalance Buyside Inefficency
LP - Liquidity Pool
LV - Liquidity Void
RTO - Return to Order Block
RTB - Return to Breaker
RR - Risk to reward
MS - Market Structure
BMS - Break of Market Structure
SMS - Shift in Market Structure
IOF - Institutional Order Flow
PDH - Previous Daily High
PDL - Previous Daily Low
DH - Daily High
DL - Daily Low
MH - Monthly High
ML - Monthly Low
LOR - Low of Range
HOR - High of Range
CE - Consequent Encroachment
IPDA - Interbank Price Delivery Algorithm
MTH - Mean Threshold
LO - London Open
NYO - New York Open
LOKZ - London Kill Zone
NYKZ - New York Kill Zone
AMD - Accumulation, Manipulation, Distribution
WDYS - What Do You See?
TSBM - Turtle Soup Buy Model
TSSM - Turtle Soup Sell Model
SH - Stop Hunt
SL - Stop Loss
SP - Stops Purged
TP - Take Profit
HTF - High Timeframe
LTF - Low Timeframe
1D - Daily Timeframe
1W - Weekly timeframe
1M - Monthly timeframe
MJH - Michael Joe Huddleston
Find The Pain Points On Your Chart & Trade Off Those Levels
  • #271
  • Nov 24, 2021 2:00am Nov 24, 2021 2:00am
Quoting TradebyTy23
{quote} Yes I definitely understand order blocks being mitigated on a 15 minute timeframe. Im wondering about the the ones on the Monthly and Weekly chart that are 2-5 years old possibly. Meaning that an institution would have held an order open for that long...it just seems unlikely but if its possible I would really like that information. Thanks
You've your answer already in your question

If order blocks are fractals, that means what? If you see it " working " in lower time frames you should see it working in higher time frames also and the reverse also true.

Just like framing trades in higher time frames, you'll need to wait more time than in lower time frames and also the time for price to hit objective ( terminus ) will be greater, so if we talk about mitigation blocks definatly it'll take more time for the mitigation to occur...

So, if we expect a mitigation on a Monthly time frame, that can take very long time for it to happen because it takes 1 month to have only 1 more candle in our screens...so yes in my understanding it can take years to happen.

I understand your perspective on how it's unlikely, but here's how I see it...
If we put our selfs in Smart Money perspective, you'll need to imagine that you're the one that can move the markets, you're the one that is the conterparty to " everyones " trades, so if you have to sell knowing that you're going to rallie the market what would you do?
I would buy a lot more...but a lot more than what I sold previously...I would make a lot of money moving that " asset " up even with that sell trade under water...
In other words, I would take that " sell loss " for the time needed just to have the chance of making real big money moving the market up after all.
Central Banks owns the currencies and they facilitate trades and like I said in previous post, sometimes it'll take a long time for SM to have a chance to mitigate their trades, that means that they'll will need to assume that " risk " ( that sell underwater ) for as long as Central Banks takes price to those levels for mitigation.
That's my understanding when ICT says Smart Money has deep deep pockets.
  • #272
  • Nov 24, 2021 9:46am Nov 24, 2021 9:46am
Quoting orderblock
EURAUD H1{image}
Hey Orderblock,
can you post more of your set ups? I learned tons just off looking at your trade
set up.
Thanks
  • #273
  • Dec 3, 2021 5:15am Dec 3, 2021 5:15am
Bread and butter

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2021-12-03 12.12.15.png Size: 242 KB


Typical NFP Day...still I can see ICT's methods working in days like this...beautiful

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2021-12-03 15.00.12.png Size: 253 KB
  • #274
  • Dec 3, 2021 9:44am Dec 3, 2021 9:44am
Quoting MM-MineMan
Bread and butter {image} Typical NFP Day...still I can see ICT's methods working in days like this...beautiful {image}
Great
Hope your post more. I also had a trade on GU today. Pocket 30 pip, not much but I'm a developing trader
  • #275
  • Dec 3, 2021 10:34am Dec 3, 2021 10:34am
Quoting brianpham
{quote} Great Hope your post more. I also had a trade on GU today. Pocket 30 pip, not much but I'm a developing trader
Nice
If xou can consistently " pull " 30 pips out of the markets...As per ICT's words, you can build a career with that

I'm also in developing...guess we all are at some degree but after following ICT methods for some years now, the " learning curve " it's impressive...I encourage anyone to follow him...best time invested
  • #276
  • Dec 4, 2021 12:38pm Dec 4, 2021 12:38pm
Quoting Kafin
Attached OrderBlock indicator is coded based on the only clear description that I've seen - and I have seen quite a bunch! {image} If you want to request for some modification, kindly: 1) Properly describe the condition(s) that should be met before an area can be considered as an OB 2) Use a chart to show when the conditions have been met - just giving the pair/date/time will be OK, but screenshot is best. 3) Explain how you intend to use the indicator in your trading. Green pips to everyone! {file}
Thanks Kafin. Appreciated. Do you have the mq4 file for this one? I'd like to understand the logic a little deeper and why it doesn't pick up some of the latest blocks in a given trend.
  • #277
  • Dec 4, 2021 1:53pm Dec 4, 2021 1:53pm





FD
  • #278
  • Dec 4, 2021 3:15pm Dec 4, 2021 3:15pm
Quoting kin78
charming
  • #279
  • Dec 9, 2021 5:54am Dec 9, 2021 5:54am
If I'm seeing it right
Here's another example of order blocks working ( notice also several OTE's and Imbalance in confluence )

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2021-12-09 12.45.19.png Size: 272 KB
  • #280
  • Dec 10, 2021 2:55am Dec 10, 2021 2:55am
My thoughts for today's Cable PA
Bearish scenario ( expasion continuation )
Short at OTE

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2021-12-10 09.54.44.png Size: 263 KB
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