ICT Order Block is the effective concept in markets to balance the critical situations. This is an underrated concept of forex trading.
So what is ICT Order Block?
How to use them?
So don’t worry today in this article we’re going to understand the basic concept of ICT Order Blocks and how to identify & use it.
In short words: Order Blocks are the special, unique & powerful supply and demand zones in forex that generate profits.
These order blocks come into process when the market triggers reversals. Started by the little candle bars and formed the tight range consolidation.
In this article we’re going to discuss ICT order blocks and how to identify them. So without any further delay let’s dive into our most interesting article.
What is an Order Block in Forex trading?
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Order blocks are the special type of Supply & Demand zones. These zones occur when banks want to enter and create a significant position in the market.
These order blocks strategy or technique is created for the banks because they don’t lose the position without decreasing the value of their current prices so that they can enter and make positions in the market, also increase their profits.
Block Orders simply splits the positions of the banks and then makes them separately fixed at same prices. This leads banks to enter silently in the market with massive positions without price hike.
Understanding the Concept of Order Block in Forex Trading
Order block zones are beneficial for the banks to maintain position silently in the market without price hike.
But these zones are created by the tight range consolidation.
Order blocks are used to allow banks to enter silently in the market in a large position but these large positions are secured by splitting it into smaller positions at similar prices.
What is ICT Order Block?
ICT Order Blocks can form in any time frame from small time frames at 15m, 30m and 5m to large frame times. These order blocks are categorised in two segments including Bullish and Bearish Order Blocks.
Bullish Order Blocks
These order blocks can be identified by the last downward candle. Before the downward candle, price will move aggressively upward and also, it is the time where investors make substantial buy orders.
Bearish Order Blocks
Similarly, Bearish Order Blocks is recognised by the last upward closing candle and before the upward closing candle prices aggressively make downward movement and can be easily analysed, prices forcefully make downward trend.
How to Find and Use Order Block?
ICT Order Block is the rare zone formation but is best to generate additional profits in Forex trading.
So How to Find and Use Order Blocks?
- Recognize tight range consolidation.
- Make a zone formation around tight range consolidation.
- Wait for the price to enter in the zone.
- Enter the market when you see a pin bar.
- And boom, your prices will make profits and the market will move into your favour.
How to identify Order Block?
Look for the strongest price reactions where prices are making sharp reversals and extended consolidation.
Identify the areas where price actions are strong and zones are making tight range consolidation or breakouts. These price zones are the indication where institutional traders may have executed large price orders in the market.
What is an ICT Order Block?
ICT Order Bloc is the term in forex where institutional traders place orders aggressively according to their point of interest (POI) and generate profits.
How to draw an Order Block?
First of all, identify the zones where price reactions are high then highlight the last up and down closing candle where prices are making movement aggressively. By this process, you can easily draw Order Blocks.
Is Order Block a supply and demand (S&D)?
No, Order Block is not a supply and demand (S&D) level and therefore, you have to understand the full concept of OB to trade in forex.
Is there an MT4/5 indicator for finding order blocks?
Yes, an indicator named MT4/5 is available on the internet to identify Order Blocks.
But to be very honest, it is a waste of time because these indicators make wrong zones around strong price reactions that lead to many losses.