Scribd
Upload
405 views7 pages

Order Block Trading Guide

Uploaded by

vikibahl
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
405 views7 pages

Order Block Trading Guide

Uploaded by

vikibahl
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 7

Order Block

Trading Guide

A step-by-step guide
on how to trade order blocks

BY NDUMISO PHELEMBE
GhosTraders
What is an Order Block!
An Order Block(OB) in forex is a change in the state of price delivery
where big participants and big banks have left their orders in the form
of pending orders (sell and buy limits or buy and sell stops). There are
two types of order blocks in forex; A bearish order block which is the
last up candle that formed the highest high prior to the down move,
and a bullish order block, which is the last down candle that formed
the lowest low prior to the up move.

1
www.ghosttraders.co.za
VALIDATION OF
Order Blocks
A bullish order block in forex is validated when the high of the lowest
down candle (Bearish Candle) is engulfed by a later formed candle.

A bearish order block in forex is validated when the low of the highest
up candle (Bullish Candle) is engulfed by a later formed candle.

N.B: an order block without a fair value gap is should not be traded

2
www.ghosttraders.co.za
VALIDATION OF
Order Blocks

High Probability Order Blocks:


OB with a Fair Value Gap ideal
An OB that lineup with Order Flow is deal
An OB with Clean Liquidity Void

3
www.ghosttraders.co.za
HOW TO TRADE
Order Blocks
When price trades higher away from the bullish order block in forex,
creating a liquidity void and then later returns to the bullish order block thus
closing the previously created liquidity void as price was trading away from
the bullish order block; this will be bullish therefore we will anticipate buy
setups in the market using the bullish order block as our entry-level.

When price trades lower away from the bearish order block in forex,
creating a liquidity void and then later returns to the bearish order block.
thus, closing the previously created liquidity void, as price was trading away
from the bearish order block; this will be bearish, and we will anticipate sell
setups in the market using the bearish order block as our entry-level.

We place our stop loss at the low of a bullish order block. Whilst in a
bearish order block in forex, our stop loss will be at least 5 pips away from
the high of the bearish order block.

4
www.ghosttraders.co.za
Bonus Lessons

WORTH READING
A bearish breaker occurs when price creates
a lower low, collecting liquidity pools by
taking out the previous low and then pulling
up and collecting buy-side liquidity on the
nearest high than price will come back later
to retest the previously violated high and
continue to go down. This happens to close
all the liquidity voids created our main goal
is to wait for a pullback to the previously
violated high and once we see a good
rejection, we make our buy entries.

WORTH READING
A bullish breaker occurs when price creates
a higher high, collecting all the resting
liquidity pools on previous highs forming a
higher high. then price will drop and collect
sell-side liquidity on previous lows and form
a lower low. after that price will retrace up to
the previously violated low and retest then
continue to drop. that’s where we will take
advantage of price and sell short on the
previously violated low.

5
www.ghosttraders.co.za
Thank you!

LEARN MORE!!
www.ghosttraders.co.za
Thank you for taking time and reading this book, we hope it has added
value to you and we wish you all the best on your trading journey. If
you want to learn more visit our website, we have freemium course for
you and our trading blog has free reading material. All of this material
will equip you on your trading journey.

6
www.ghosttraders.co.za

You might also like