Order blocks are typically identified as the last opposing candle before a strong impulsive move that breaks market structure. Traders look for price to return to these zones for potential entries, but their main limit is that not every order block holds, and false breakouts are common.
When trading order blocks on a funded account, managing your risk and position sizing is critical to respect strict daily loss limits and drawdown rules. Dropping below these thresholds can breach your evaluation or funded account instantly. Always cross-check your setup rules with the firm's specific guidelines, such as news trading restrictions.
How do you filter out low-probability order blocks in your daily routine? Drop your thoughts below!