“Why Your Order Block Failed! 🚫📉 Avoid These Common Mistakes! #TradingTips #OrderBlocks

1. Context is Crucial: An order block isn’t just any down-close or up-close candle before a price move. It’s essential to assess the context, like the overall trend, liquidity levels, and market structure. An effective order block generally aligns with a broader directional bias and is situated in a high-probability area.

2. Volume and Structure Confirmation: An ideal order block often coincides with significant volume or has a noticeable reaction in price action. This reaction confirms institutional interest, as price often respects these zones when revisited.

3. Identify Institutional Footprints: Look for candles that show evidence of institutional activity, such as sharp, unidirectional moves followed by a consolidation or retracement. These candles represent more than just retail trading patterns, giving clues to where larger players may have entered or exited.