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Most order block failures occur because traders identify zones, not intentions.
High-probability order block failures differ:
• Liquidity is exploited first
• Strong displacement confirms the validity of orders
• Trades are executed at a premium (upward) or at a discount (downward)
• Convergence of order block points, fair value gaps, and interest points on the higher timeframe
Stop drawing random squares.
Start trading where institutions are actually moving the price.
How to find high-probability buy points:
Strong displacement, rapid movement away from the buy point (The clear shift in order flow should result from the displacement)
Liquidity absorption, the buy point should form after clearing liquidity for any peak/trough.
The premium and discount must be tested. (Buy at a discount and sell at a premium)
Convergence, the buy point aligns with FVG, breakout, and forms at an interest point on the higher timeframe.
Why do most order blocks not work?
1. No displacement
Real order blocks cause strong movements
2. Wrong zones
Always look in the discount zones within bullish order blocks, and in the premium zones for bearish order blocks
3. No liquidity sweep
Price searches for liquidity before respecting the order block
4. Random OB'S
Not all candles are valid order blocks
An buy order block is confirmed when the price closes above the lowest bearish candle's open — and preferably if it closes above that candle's high.
A buy order block is confirmed when the price closes below the highest bullish candle's open — and preferably if it closes below that candle's low.
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