Use Order Block Indicator for Accurate Technical Analysis

Order Block is Much more Needed for Technical Analysis

Often those Order Blocks may be found at the start of a sturdy move, however there may be a great chance that those fee degrees could be revisited at a later factor in time again. Therefore those are thrilling degrees to region restriction orders (Buy Orders for Bullish OB / Sell Orders for Bearish OB).

A Bullish Order block is described because the closing down candle earlier than a series of up candles. (Relevant fee range "Open" to "Low" is marked)

A Bearish Order Block is described because the closing up candle earlier than a series of down candles. (Relevant fee range "Open" to "High" is marked).

Order Block Finder Experimental

The main algorithmic code behind Order Block trading strategy is mentioned as follow:

Trading order blocks and supply/demand zones are the same because order blocks are a rare type of supply or demand zone. Simply draw a line through the zone on the chart. Wait for a Doji, an engulfing bar, or a large range bar to appear before placing your stop loss on the opposite side of the bar. Expect the price to decrease.

Orders are placed at large institutions, such as banks, by traders known as "Agency Traders," who trade on behalf of a client. When it comes to trading decisions, they do not have as much freedom as Prop Traders.

Assume Goldman Sachs wishes to place a large order of million on GBPUSD, but only 100 million are available. This is due to a lack of liquidity. As previously stated, every Buy order must be accompanied by a Sell order. All buy and sell orders in the market from liquidity are transacted.

They may not be able to execute all of their 500 million in a single trade because there may not be enough liquidity or sellers willing to sell them 500 at this price.

Instead, they would divide their order into chunks or blocks and execute them at different market price levels where their orders would be filled because the party on the other side of the block of orders may not be able to obtain the required number of orders.

Their only option is to divide their order into blocks (hence the term "Order Block") and manage the positions within each block. By dividing their 500 million positions into a series of smaller positions, say 20 million block orders, Goldman's orders could be filled and trades executed at the price they desired without chasing the price or disrupting the current market price.