Make $100 PER DAY - The Ultimate Order Block Trading Strategy

The Moon Show

Introduction to the Order Block Strategy

The order block strategy is used to maximize profits by identifying zones on the chart where large institutional players place significant buy or sell orders, causing big market reactions. This strategy helps traders identify potential areas of support, resistance, and price reversals.

Setting Up a Trading Account

To start trading with this strategy:

  1. Subscribe and create a BuyBit account.
  2. Make your first deposit by clicking on "Assets" and following the deposit process.
  3. Navigate to the derivatives section and choose your order type and leverage.

Understanding the Strategy

The strategy involves:

  1. Identifying an order block as the key trading zone on a higher timeframe.
  2. Confirming reversals by analyzing lower timeframes when the price taps into that area.
  3. Trading the order blocks until reaching your targets by ensuring high-quality entries.

Timeframe Analysis

The strategy uses three major timeframes:

  1. Daily Timeframe: For general analysis, reading market structure, finding key levels, and assessing space before reaching important higher timeframe levels.
  2. One-Hour Timeframe: To apply concepts, identify market direction, decode levels, fair value gaps, and order blocks in optimal trading zones.
  3. Five-Minute Timeframe: To find confirmation and open positions.

Key Criteria for Analysis

  • Opposite Colored Candles: Act as strong support or resistance.
  • Fair Value Gaps: Indicate big player participation; the market often returns to these areas.
  • Multiple Rejections: Show trader reactions, making a level stronger.

Executing the Trade

  1. Wait for the price to enter the trading zone.
  2. Look for confirmations (liquidity sweep patterns, changes in character) on the lower timeframe.
  3. Execute the trade by setting a buy limit at the start of the order block zone and placing a stop loss below it.

Managing Trades

  • Break even by closing half of your position when the price reaches your 1:2 risk-reward ratio target.
  • The next target is the first important zone ahead of the price on the higher timeframe.

Example Trade

  1. Identify a smooth uptrend on the one-hour timeframe chart.
  2. Mark the candle before the imbalance as the optimal trading area.
  3. Wait for the price to tap into the zone and then zoom into the lower timeframe for confirmations.
  4. Open long positions based on order blocks and manage trades accordingly.