ORDER BLOCK TRADING (How to Spot CENTRAL BANKS Orders)

The order block breaker indicator in MT4 gives important info about how the market is set up. It shows when the big trend might change or when momentum is running out.

This helps forex traders spot areas where prices might switch from going up to going down (Bullish to Bearish) and vice versa. Then they can decide when to buy or sell. Plus, the indicator sends alerts when there’s a chance to trade.

An order block is like a footprint in the market. It’s the last candle showing a downward trend before prices start going up, or the last one going up before prices drop. Traders see these blocks as spots where prices might turn around.

The indicator is good for experienced traders but newbies can learn with practice. It works well in short-term and longer-term charts like daily, weekly, and monthly ones.

Order Block Indicator. You can manually analyze Order Blocks, which is excellent for honing your Order Block analysis skills. However, there’s a drawback to this technique: it lacks speed. The only solution is to utilize the Order Block indicator.

By employing this indicator, you can swiftly analyze across all markets and time frames. As seen in this chart, identifying order block positions becomes quick and effortless.

The EURUSD H4 chart above displays the Order Block Breaker indicator for MT4 at work. This indicator marks Bullish order blocks in NAVY BLUE and Bearish order blocks in MAROON. Plus, it sends alerts through messages, sounds, and push notifications, which users can customize in the settings.

When the price enters a Bullish order block, it suggests a possible price reversal.

• Technical traders should then seek a BUY entry point based on the price movement within this Bullish block. Since it represents strong support, common technical indicators and strategies validating support are applicable here.
• Setting a stop loss below the order block or the previous low is advisable.
• Profit-taking can depend on the risk-reward ratio or the next available resistance level.

Likewise, entering a Bearish order block suggests placing a SELL position as the market is expected to reverse.

• Technical traders should then seek a SELL entry point based on the price movement within this Bearish block.
• Placing a stop-loss above the order block or the prior high tends to yield better results.
• Profit booking should be in line with a favorable risk-reward ratio.

Remember, an order block usually represents a zone, not just a single line or point. Traders should observe and react within this zone accordingly. A break in the order block indicates a potential reversal against the prevailing trend. However, order blocks that continue in the previous trend direction often offer better rewards and a more favorable risk-reward ratio.