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Order Block Theory - Institutional Trading Method

  • #121
  • Jul 9, 2021 1:24am Jul 9, 2021 1:24am
Quoting forextrini1
ICT recommends using 2% or your balance for a stop loss for those new to trading. Together with that you want your lot size to give you about a 30 pip stop for newbies. That means your 30 pip SL SHOULD NOT be more than 2% of your account balance. This is critical to growing your account. I use a larger lot size but still keep the SL at 2% no matter what, keep in mind that doing this will make you SL pips smaller and more likely to get hit so your entries have to be well timed. The problem with learning this is new traders do not want to take the...
2% is too much imo.

I think it is more realistic working with dynamic lot sizes starting at ~0.5% and ranging up to ~1% maximum of your total capital, independently of how much it is from it in your balance.

If you, for instance, trade a symmetrical extension setup above the initial 50%, you can make a net 1:1 to 1:2 RRR trade using proper trade/money management.

Having a capital of $50K, it allows you to get something between $250 and $500 per trade. Hence, your weekly profit could be around $500-$1,000 trading twice or three times a week assuming you are not compounding.
  • #122
  • Jul 9, 2021 2:49am Jul 9, 2021 2:49am
Quoting forextrini1
ICT recommends using 2% or your balance for a stop loss for those new to trading. Together with that you want your lot size to give you about a 30 pip stop for newbies. That means your 30 pip SL SHOULD NOT be more than 2% of your account balance. This is critical to growing your account. I use a larger lot size but still keep the SL at 2% no matter what, keep in mind that doing this will make you SL pips smaller and more likely to get hit so your entries have to be well timed. The problem with learning this is new traders do not want to take the...
Thank you for your analysis. I allways thought the last bearish candle was the one on the 30th of march... This candle has lower H and L. But you are obviously right... how to express better the definition of OB? Is it the first bearish candle on the way up?
  • #123
  • Jul 9, 2021 3:01am Jul 9, 2021 3:01am
Quoting Milan
{quote} Thank you for your analysis. I allways thought the last bearish candle was the one on the 30th of march... This candle has lower H and L. But you are obviously right... how to express better the definition of OB? Is it the first bearish candle on the way up?
Any white candle is a bearish order-block. Not just the last one before a swing. It happens that smart-money enters the game near swing areas, therefore most of the volume that initiates a drop lies within the last white candle. We expect some kind of responsiveness when price retests an order-block.

But that is just a fact, not a strategy. Order-blocks are facts.

Therefore, the problem is not identifying the facts, but defining the context and that cannot be done with order-blocks alone. You need different facts and data to establish a framework to work on.

All what can be said here is on the Michael Huddleston ICT videos on Youtube; directly from the author of the system.

Many try to use chart patterns over order-blocks and stuff like that. An error in my humble opinion.

But I think anyone wishing to understand the basics of ICT should go through most of the videos published by Michael himself and, maybe, start from here:

WENT series:

Inserted Code
https://www.youtube.com/watch?v=7B6UPKvJG60
  • #124
  • Jul 9, 2021 4:21pm Jul 9, 2021 4:21pm
Quoting scherzi
{quote} Any white candle is a bearish order-block. Not just the last one before a swing. It happens that smart-money enters the game near swing areas, therefore most of the volume that initiates a drop lies within the last white candle. We expect some kind of responsiveness when price retests an order-block. But that is just a fact, not a strategy. Order-blocks are facts. Therefore, the problem is not identifying the facts, but defining the context and that cannot be done with order-blocks alone. You need different facts and data to establish a...
Just watched the first one and that was enough wont be watching anymore
  • #125
  • Jul 10, 2021 6:17am Jul 10, 2021 6:17am
Quoting Wags
{quote} Just watched the first one and that was enough wont be watching anymore
I have not counted it, but order blocks would require studying around 150 videos similar in style to went series.

And then practicing.

As I say, this market break structure is sufficient and the effort required is more adequate for the average student.
  • #126
  • Jul 12, 2021 6:51am Jul 12, 2021 6:51am
If you need clarity on order block Watch the ICT Precision Trading Concepts series volume 1 to 3. These are very short videos the longest is just over an hour but they are really clear on trading order blocks using high time frames.
But really if you are new to trading forget concepts and start with series "what every new or aspiring forex trader what to know." Watch a little daily like a college class.DO NOT LIVE TRADE! UNTIL YOU CAN TURN A DEMO ACCOUNT PROFITABLE. Then go into the other stuff. Yes it will take months but it will save you the heart ache of constantly blowing your account.
Stop thinking like a retail trader
Forextrinitrader3.0 Profit This Month: na
  • #127
  • Jul 12, 2021 8:12am Jul 12, 2021 8:12am
Quoting forextrini1
If you need clarity on order block Watch the ICT Precision Trading Concepts series volume 1 to 3. These are very short videos the longest is just over an hour but they are really clear on trading order blocks using high time frames. But really if you are new to trading forget concepts and start with series "what every new or aspiring forex trader what to know." Watch a little daily like a college class.DO NOT LIVE TRADE! UNTIL YOU CAN TURN A DEMO ACCOUNT PROFITABLE. Then go into the other stuff. Yes it will take months but it will save you the heart...
Indeed, it'll take months. Even charter (private mentorship) students require about 2 years to start trading.

There are tricks like trading only one side or trading only once per week to develop the most important skill: patience.
  • #128
  • Jul 21, 2021 5:08pm Jul 21, 2021 5:08pm
Quoting scherzi
{quote} 2% is too much imo. I think it is more realistic working with dynamic lot sizes starting at ~0.5% and ranging up to ~1% maximum of your total capital, independently of how much it is from it in your balance. If you, for instance, trade a symmetrical extension setup above the initial 50%, you can make a net 1:1 to 1:2 RRR trade using proper trade/money management. Having a capital of $50K, it allows you to get something between $250 and $500 per trade. Hence, your weekly profit could be around $500-$1,000 trading twice or three times a week...
I like this idea, but I do not have $50K I Started with just $2500 and going from there. My goal is only 6% per month with max goal $100/week, which is very achievable. So far I am just about break even...according to ICT that is the first goal...so I must be doing something right.
People think about risk to reward ratios too much. Even a 1:1 can be profitable. If you keep locking in profits the only way your account will go is UP! I am testing 1% stop losses...its tight to get it that narrow unless modifying to mini and micro lots. Heck I had almost 5000 in my money market account and what the bank gives me? 42 cents per month. If a person can't lock in 42 cents per month in forex this is not for them...lol!!! cheers
Stop thinking like a retail trader
Forextrinitrader3.0 Profit This Month: na
  • #129
  • Jul 21, 2021 8:55pm Jul 21, 2021 8:55pm
Gold - another entry at Breaker, aligned to RN 1800 and Fib OTE level
Attached Image (click to enlarge)
Click to Enlarge Name: 8c1ec8b899f552c9220fe8dd8b056f6a.png Size: 129 KB
"Exchange of hands"
  • #130
  • Jul 22, 2021 4:28am Jul 22, 2021 4:28am
Quoting forextrini1
{quote} I like this idea, but I do not have $50K I Started with just $2500 and going from there. My goal is only 6% per month with max goal $100/week, which is very achievable. So far I am just about break even...according to ICT that is the first goal...so I must be doing something right. People think about risk to reward ratios too much. Even a 1:1 can be profitable. If you keep locking in profits the only way your account will go is UP! I am testing 1% stop losses...its tight to get it that narrow unless modifying to mini and micro lots. Heck...
If you are breakeven, that means nothing, it could be luck. Maybe you are just cutting your gains, who knows, that does not matter.

On the other side, I also think that 1:1 is something to master before trying higher RRRs.
  • #131
  • Jul 22, 2021 5:22am Jul 22, 2021 5:22am
Quoting orderblock
AUDUSD, trade in London Kill Zone {image}
Hi there Orderblock
Just a note that the Fib is incorrectly placed onth this chart. You cannot pull out the fib for the most recent uptrend until it has hit its high. The leg that you have identified, is a downtrend and therefore the fib should be placed from top to bottom (ie opposite to how it is placed currently). Notwithstanding this, Orderblock theory is, in my opinion, the way forward!
  • #132
  • Jul 26, 2021 4:27am Jul 26, 2021 4:27am
Quoting scherzi
{quote} If you are break even, that means nothing, it could be luck. Maybe you are just cutting your gains, who knows, that does not matter. On the other side, I also think that 1:1 is something to master before trying higher RRRs.
A 70% win rate is not luck, this I say from experience after blowing my first 2 accounts...it's an ever fine tuning system of psychology and money management, Yes I have to work on holding my gains a little longer, but I am sure I will get there by year's end. But I am not adding any more capital to my account until I can double my initial deposit.
Stop thinking like a retail trader
Forextrinitrader3.0 Profit This Month: na
  • #133
  • Jul 26, 2021 4:35am Jul 26, 2021 4:35am
Quoting forextrini1
{quote} A 70% win rate is not luck, this I say from experience after blowing my first 2 accounts...it's an ever fine tuning system of psychology and money management, Yes I have to work on holding my gains a little longer, but I am sure I will get there by year's end. But I am not adding any more capital to my account until I can double my initial deposit.
Let's hope so.

Keep focused and beat it.
  • #134
  • Aug 19, 2021 11:34pm Aug 19, 2021 11:34pm
CAN SOMEONE please explain me how to use this indcator? it shows many lines and OB ofcourse,thanks
Attached File(s)
File Type: ex4 FHL_OrderBlock V1.3.ex4   76 KB | 1,769 downloads
  • #135
  • Aug 22, 2021 9:44pm Aug 22, 2021 9:44pm
23-08-21 Gold Long

1. Identify Imbalance candle
2. Identify Imbalance candle filled.
3. Candle back to ORDER BLOCK, wait till it done all the Stop order hunting.
3. Enter trade below or at Order Block Border when candle moving up.
4. Managed to TP total of 85 pips with 3 open positions, but the time of posting, bar went up total of 90 pips.
Attached Image (click to enlarge)
Click to Enlarge Name: e90d4dc16ce964a4f899f93a0e32c07f.png Size: 722 KB
  • #136
  • Aug 23, 2021 12:19am Aug 23, 2021 12:19am
Quoting girl.trader
CAN SOMEONE please explain me how to use this indcator? it shows many lines and OB ofcourse,thanks {file}
Why not just manually mark on your charts rather than depending on indicators? In that way, you are also training yourself familiarizing orderblock levels.

Just a friendly suggestion.
SMT, IPDA, Market Structure
  • #137
  • Aug 23, 2021 9:56am Aug 23, 2021 9:56am
Quoting sleewc
23-08-21 Gold Long 1. Identify Imbalance candle 2. Identify Imbalance candle filled. 3. Candle back to ORDER BLOCK, wait till it done all the Stop order hunting. 3. Enter trade below or at Order Block Border when candle moving up. 4. Managed to TP total of 85 pips with 3 open positions, but the time of posting, bar went up total of 90 pips. {image}
thanks sir,how to find imbalance,i can see fresh imbalance created by a spiked candle on right,how do u call these 3 candles on left as imbalance,please explain.
  • #138
  • Aug 23, 2021 10:31am Aug 23, 2021 10:31am
That OB theory is a part of the Inner Circle Trader system.

You need about 2 years to understand it. Maybe 3 to learn to use it. If you do not have 2 or 3 years available to study it in depth and intensively, my advice is you to forget about it and try another approach. Say bye bye to your free time, weekends and holidays for a few years if you intend to get involved in these concepts.

All the videos are here:

https://www.youtube.com/user/InnerCircleTrader

If you try to use OBs and imbalances without studying the complete materials, you will lose your money.

And that is only the free materials, the private mentorship, that is closed for good and not accessible, goes beyond all that.

In any case, there are no shortcuts to order-blocks and ICT. Using it as a separate concept outside the complete system will make you lose money fast and consistently.

Please, do not send to me private messages asking about ICT materials or ICT doubts, I will block anyone sending me DMs without previous warning.

The objective of this comment is to prevent you from losing your money.
  • #139
  • Aug 24, 2021 12:13am Aug 24, 2021 12:13am
Quoting scherzi
That OB theory is a part of the Inner Circle Trader system. You need about 2 years to understand it. Maybe 3 to learn to use it. If you do not have 2 or 3 years available to study it in depth and intensively, my advice is you to forget about it and try another approach. Say bye bye to your free time, weekends and holidays for a few years if you intend to get involved in these concepts. All the videos are here: https://www.youtube.com/user/InnerCircleTrader If you try to use OBs and imbalances without studying the complete materials, you...
Agree! OB is just a part of the whole concept of ICT.
SMT, IPDA, Market Structure
  • #140
  • Aug 24, 2021 12:36am Aug 24, 2021 12:36am
Quoting sleewc
23-08-21 Gold Long 1. Identify Imbalance candle 2. Identify Imbalance candle filled. 3. Candle back to ORDER BLOCK, wait till it done all the Stop order hunting. 3. Enter trade below or at Order Block Border when candle moving up. 4. Managed to TP total of 85 pips with 3 open positions, but the time of posting, bar went up total of 90 pips. {image}
Thanks alot for explaining the concept,i saw few you tube clips and studied and learnt,it really make sense what you explained.i value your posts,please keep teaching,thanks for generosity.
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