How to Identify an Order Block
Find a strong impulsive move. Look for a Break of Structure (BOS). Identify the last opposite-colour candle before the move. Mark that candle's zone. Wait for...
CommunitySign in to join the conversation
Identifying an order block starts with finding that impulsive move and a clean Break of Structure (BOS), just like you mentioned. To trade it effectively, you look for the last opposite-colour candle before the expansion, marking its high and low as your zone of interest. When price retraces back to this mitigated level, traders often look for lower-timeframe confirmation entries.
When trading order blocks on prop firm accounts, managing your risk is critical because a single aggressive entry can breach strict daily loss limits. Always align your supply and demand zones with proper position sizing.
How do you handle confirmation when price taps your order block? Drop your thoughts below!