Order Block Theory - Institutional Trading Method

NZD JPY I look forward to a swing trader
reaping many profits

I think a traditional price action trader would have known in advance in this scenario - the HTF is saying price is in the zone where support could turn into resistance and in the LTF price is near a zone where also support could turn into resistance and so the flag should not be traded and rather we should look for sell opportunities.

I believe ICT is also using price action. His view of price action is from institutional point of view (and not retail). For example he defines a Bullish Orderblock as "The Lowest Candle or Price Bar with a Down Close that has the most range between Open to Close and is near a “Support” level." (and vice versa for the Bearish Orderblock). That means before you can say the candidate Candle is an Orderblock you must satisfy yourself that it is at or near the "Support" level (and not the retail trader's support zone). The nice thing about his concepts is that they are specific and not looking at the general area or zone. It allows you to take less risk.

But anyway I was just pointing out that sometimes we might make an example without checking the other side and the trader from the other side might argue and win (like in this example).

In any case, I understand your opinion. You are right since not checking the other side would reduce the friction on the forum. Good point. I won't enter into discussions about the example you mention since your intention is related to the fact I have been comparing, and there you are right and I do not want to deviate the attention from your central idea.

Now, going back to the topic of this thread, this is a failed trade (I closed it). I went long on the order-block inside the red circle, but I closed it because it was too penetrating and a bit soon. But it finally reacted in the direction of my trade. I just took initially a loss here.



One can mitigate these losses afterwards, but things are not that obvious sometimes, at least for me.

Manipulation market

I also see this possibility of a sell market maker model in progress till next month of November o December and an ascending market in consequence.

Seriously, one key is in the marks of what i draw on your chart. I do not mark all.



I do not get why so many systems are so strange complicate.

Well, I was just using the chart provided. This would be my non-extensive analysis in any case. Running lows and taking highs is not that complex.

It can be more presice and by far more simple. I see tons of system who are building to deep connection to very far away candle. So many must be in tune to fulfill the concepts. Blank spaces must with big moves filled, if it ever will be.

Funny how life is in some "moments"

So let me say this, I was following ICT for some time ( I've found him in Babypips forum ) and let me tell you that was an awesome find because I started to engage in the markets recently at that time. I was searching for someone that could explain why price goes one way or another, what makes price change in a dime, etc, etc...
A had bunch of questions that no one was teaching about, till i found him.
I've followed him for about 1 year and a few months and unfortunatly I had to stay away from markets till recently...It was in fact a 4, 5 years pause
I've lost all the opportunities to be part of his mentorship group, and let me tell you " even " ( tbh I don't believe it ) and " even " if he doesn't deliver anything " new " a part of his free stuff, I'd pay glady the monthly membership every months with no doubt...
Just only, having the previlege to see the markets every day " trought " his eyes that monthly fee it's nothing...IMO

He started the mentorship in 2017 and I believe that some part of that intial group is till learning today, so you started the mentorship 7 months ago and you're quiting now, just leads me to think that you haven't put the work needed in to it.
I don't want to sound arogant or what ever, just exposing my idea about it and after reading all the post in this thread and the things mentioned about ICT.

Yeah... ICT " stuff " works...and Hell if it works lol
Just like mentioned by others before, Order Blocks isn't all, there's a lot more besides that...in fact I can hear ICT saying in my head " Order Blocks is the least of your concerns "...
Another thing that was already said here and it's very true, reviewing his videos you'll find " gems " in it that you didn't notice the first time you saw the video.
I'm not perfect...I take losses...and I know I'm very far from ICT results but he's my mesure cup so to speak lol
I aspire to be as good or better ( everyone has flaws and we learn from failures/flaws ) as ICT.
Just wanted to give my 2 cents

Now on Topic:

My trading plan includes Order Blocks so I decided to post a screen shot so you can see isn't just talking
I take profits during the run trying to take at least some pieces of the Lions portion
And Note that I ussualy don't trade LC sessions, this time was an exception because I had a chart open at that time and I was studying London and NY sessions price action and the " tools " presented an possible " sell signal " at 1.3745

The last trade was made in London Close KZ :

- 3 Sell Market Orders at the level 1.3745 with a 30 pip stop loss
- 1st profit target at 1.3690 ( closed 1 order )
- 2nd profit at 1.3680 ( closed 2nd order )
- 3rd profit at 1.3650 ( tried but price didn't filled me yet ) / this one I'll try to take half of the open position of before going to the weekend and let it run for the lows if it gives me



Just a reminder, taking profits during the run, removes my exposure and in accordance it removes any stress or worries about it...they can take my stop loss of that one last trade and i wouldn't even care at this moment...Like someone says, pay the trader!

Peace

Yes, but that is not the topic of this thread. We could discuss a few dozens of pricing features. You are just showing a typical buyside imbalance that will be, in the future, filled with short orders to correct that inefficiency of short orders filling. But that is not the topic of the order-block theory the author of this thread wants to explore.

And the role of inefficiency correction by far candles reconnection later in the future, if you wish, is very different from the ideas sustained on order-blocks. I think we should stick to the subject of this thread.

Just the original setup I took this morning on GU. OTE over order-block. One does not need even to be extremely precise in the entries.

It does not necessarily reflects how I traded it nor my exit level, just the initial setup and expected probable expansion I had in mind when I opened the trade above.


I have added this in order to show how simple and effective are OTE entries once you understand order-flow. Even if you missed the first entry, three additional opportunities were offered to you in the same direction consecutively. And then, a new one in the opposite direction during NY session.

So, again, it is all about decision-making and avoiding emotional trading which is the hard part. ICT as other methods can be effective if you build your own system upon it.

Finally, I repeat myself always on this. I use a simulator very often, usually every single week I am improving my execution and knowledge of the markets using intensive simulation when I am not trading. I do it at night, I do it on the weekend and on holidays when I can. Anyone willing to trade should seriously consider massively practicing with a simulator in my opinion.

These are always levels to watch. I think trading levels is wrong. We only watch at levels and see what happens there.

Trading a candle, an order-block or a level. That is, in my opinion, a big mistake.

That is one of the reasons why trading is so difficult. Discerning which level could be tradable or not is the hard work.

Another choice is assuming both sides of the market and entering opposite trades as we do in options when we execute strangle strategies.

As long as the methodology is backtested everything is valid.

So, just to reinforce my #Post 189 when we get IOF right the Order Blocks will work " if " we identify them right
There are a lot more ICT tools to use in conjuction to get better odds ( higher probabilaty ) on our setups though.
And at the end of the day it isn't about being right, it's about being profitable


I've shorted again Cable at another OB, all profits taken at this time.
I left just a little portion on ,just because I don't " think " we didn't made the bottom yet

Hello.
I have been trading OB for almost 2 months ( after 2 ys of trading) and I love this concept ( Never heard of ITC before)

My 2 cts.

I only work them in D charts.
Never GOLD
I have 2 indicators.
I love Fibo, but never use it, even I think is a good help.

Please can you mentor me on it, I didn't understand what this explanation

Next one is this

Lets see how it goes

I would like to draw the attention of those new to ICT to one fact.

Anything seen in classic trading theory is not applicable to nor compatible with ICT in general terms. Even when may occassionally share terminology, we mean completely different things. That is one of the reasons I try not to use terms as bullish or bearish, support and resistance, etc. when I am speaking within the ICT context.

One example is a long I took this morning below a structure similar to a double top. There are other double tops before this trade and, in any case, the example only shows a long position that would be seen by a chart pattern trader against a double top-like structure, confirmed or not.


Understand that I am not saying that double tops are not tradable by expert chart pattern traders, just that ICT is not compatible with it. Nor trendlines, nor EMAs, nor RSI, nor anything seen in the technical analysis literature out there.

So, this is different. Just that.

Will GJ fill 50% of OB to continue down?

More GJ Possibilities...
https://www.tradingview.com/x/t1vnhpsM/

I think MetaTrader is not made to trade with order flow!
if you want to trade like institution then you most use same platforms for trading

it is just my opinion