Supply & Demand - Order Blocks

Order blocks are supply and demand zones where large market participants place large orders. Since a large volume order can cause a sharp price change, it is divided into smaller order blocks, which are executed as the liquidity of counter orders accumulates. I will discuss the Order Block Trading Strategy with Examples. Order Block Trading Strategy is a method that involves identifying and trading off significant price levels on a price chart. Traders using this method look for areas where large buying or selling activity has occurred in the past, potentially acting as areas of support or resistance in the future. Order blocks can be found in any timeframe, from minutes to weeks, and can be used in any market, including stocks, futures, forex, and cryptocurrencies. Order block trading can be combined with other technical analysis methods, such as trend lines, moving averages, and oscillators, to confirm trades or to identify a potential trade setup.