Order Blocks Simplified
Simplified Learning
RYTRADES 15, DECEMBER 2023
Order Blocks
What Is an OrderBlock: An Order block is a specific area in the marketplace where orders(Buy
and Sell) from institutional traders, have been executed. A Orderblock is also a change in the
state of delivery or a change in price delivery. A change in the state of delivery is when price
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shifts from a Bearish OrderFlow or Sell program to a Bullish Orderflow or a Buy program or
when price shifts from a Bullish Orderflow or a Buy program to a Sell Program. The last up-
closed or down-closed candle that caused the CISD is what would be our OB. It is important to
note that Not every upclose or downclose candle is an Order Block. The bigger the candle body
the higher probability the Order Block is. Another way to Identify high probability Order Blocks is
when they take out some form of higher timeframe level or hit some form of higher timeframe
PD Array. Always remember to Incorporate the Mean Threshold of the Order Block in your
analysis. The low of the OrderBlock can be use for safe stop loss placement. The top is known
to be the High, The middle is the Midpoint or the Mean Threshold of the OrderBlock and the
bottom is the low of the Orderblock.
Buy Program to Sell program Example
CISD(Change In State Of Delivery
BUY PROGRAM
Sell Program
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Sell Program to Buy Program Example
Sell PROGRAM
Buy Program
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Bearish Order Block
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Bullish Order Block
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Disrespect Mean Respect Mean
Threshold Threshold Entry
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The mean threshold is the midpoint of the Order
Block. Whenever price disrespects the Mean
Entry
You can also use Mean Threshold of the
Order Block as Entry points as well. If you
threshold of an Order Block, this may mean that have a very large range candle in which you
the Order Block is invalid. When the Mean think price may trade further into the
Threshold of the orderblock is respected That OrderBlock, you can use the Mean
means the orderblock is valid. Threshold as an Entry point for more
precision.
15 MIN 1 Min
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This is an example of a Bullish OrderBlock. The 15 Min Orderblock Transposed to the 1 Minute
chart is made up of multiple candles. Price trades down into the Higher timeframe 15 Min FVG
which the OB was formed In. Also we can see that when price traded down it took out a short
term low and created a 1 Min Order Block inside the 15 Minute FVG. Price respected the 1 Min
OB retesting it multiple times with the body not closing below the mean threshold, That could
have been a buy aiming for the High or you could have waited for the 15 Min OB to be hit.
15 Min 1 Min
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This is an example of a Bearish OrderBlock. We traded up into a 1 Hour OB then we traded down
from that Orderblock and formed a 15 Min OB. Price traded back up to that 15 Min OB rather
quickly and formed a 1 Min OB in that area. There are two entries marked on the chart. The Entry
from the 15 Min OB would be a really good entry as the up candle tapped the OB to the tick and
started trading away. The second entry would be the 1 Min OB which would be a good entry as
well with price respecting the OB trading up to the high before Pushing away.
High Probability OrderBlocks Low Probability OrderBlocks
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An Orderblock is considered High probability An Orderblock is considered low probability
when it is paired with a FVG and has strong when there are not any strong candles on the
candles away from the Level. A Orderblock is move from the level or no strong move with
also high probability when it takes out some displacement away from the level. An
form of higher timeframe Level. ICT prefers Orderblock is considere low probability
to see price move Two to Three Heights When no Higher Timeframe Level has been
away from the orderblock for a rally as well. hit either.
Orderblock Trading Strategy
1. Point of Interest: Identiify a higher timeframe Point Of Interest.
That could be a swing high or a old swing low or Relative highs or
lows or Imbalance or OrderBlock. 4 hour Or 1 Hour Timeframe.
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2. Drop down into the 15/5 Min timeframe to find an Order
Block to look for potential Trade Entries.
3. Whenever you see a rejection from the OrderBlock, drop
down into the lower timesframes 4/3/2/1 Minute and look for
entry signals whether It’s another smaller Orderblock or a FVG
to enter from
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Things To Note
Orderblocks are strong impulsive moves from a certain price level. This then results to the
market moving aggresively from that specific point whenever it mitigates that level.
As long as the Candle going up into the Orderblock does not completely close if or close above the
mean threshold, It is still considered to be a valid OrderBlock.
The OrderBlock is stronger whenever it mitigates some form of higher timeframe PD Array or
touches some Higher Timeframe level.
A Orderblock is considered a higher probability when it is paired with a FVG
Backtest And Journal get your own backtesting data to seeif a specific strategy suites your trading
style
