Transcript for:
Understanding Order Blocks in Trading

sure it's Anonymous if I'm not mistaken and yeah you know you tell me exactly like recommendations suggestions your feedback it was largely super ultra lar largely positive last semester really not really bad but said it was more of a suggestion they were just like hey I feel like we should have learned this before we learned that because it would have been easier to understand it and then I was thinking about it I'm like they lowkey right like it's better to put this up front and so that's what I'm putting up front I took whoever said that I think two people said that whoever said that I took that recommendation so uh order blocks is today but then for people who are doing the mentorship the second time right now uh y GNA see I put a I put a couple things up I Chang I Chang the format a little bit that's what I was thinking about this afternoon so with that being said cranberry apple juice is PED chat is up and class is where's the water Erica my chat is not working I can't read right now let's press record recording in progress all right everybody Welcome to the class on order blocks order block Theory this is a great class this class is going to definitely help you know how to find the best order blocks in the market know how to basically use order blocks to bring you profitability because some people just live and die off of order blocks and I wish they knew like the secrets to order block because if you know the best ones you really could live and die on this strategy like I ain't going lie like fa Gs are amazing um you know any other POI you could think of any other PD you could think of they all they're all solid in their own ways but order blocks gain the popularity it did for a reason because it's it's probably like one of the best things you could use to make money with and so that's what we'll be talking about today all right but let's start with this price action recap not really that much to say just like if you I know people watching this on recording right now but on the watch list just yesterday I was talking about how today's weather in the market it's not expected to be good because look at look at today Monday July 22nd none scheduled there was nothing on the economic calendar that was supposed to let price become really energetic and so you could kind of anticipate the chop so I had the profile I took the mental profile of someone who's being very conservative today and so that's exactly how I Trad it didn't really have on a lot of size really just kind of was really uh focused on like yo when I know this chop I'm about to get out the market you know I got caught up and chop a little bit in the afternoon on a couple of my accounts but largely though I did a very good job um maintaining discipline and what I expected to be a choppy environment now heading into heading into today's price action let's look at like what it was looking like so because there's lessons that could be learned on this of course all right so even let's Le let's rewind it even more it was really like this so heading into the watch list yesterday the plan was we're going to see if this CBI could send price back to the downside you know it's a nearest cby and uh there's potentially lower Targets on NASDAQ and so this will kind of tell you the mood of the market like if the market were to use this and drop again then you could tell we're heavy you know it's not really retracing much it's using the to the closest PD array or the closest tool and and dropping off right again like it's not even wasting no time making these deep retracements before coming back down like n and so we're we're on the lookout for that and so as uh let's kind of see how price started trading in it at first it came into it and then it started rejecting it this is good you know good solid little rejection but then you see this sippy getting uh disrespected here you're like okay that's suspect because if we were Bears the CI shouldn't have really gotten disrespected but okay and then next thing you know as time goes on price ends up going back to the upside and it starts to invalidate this Cy so now you have to say yourself like okay this c is now invalidated from the full hour and so what was the plan yesterday on the watch this we said if this C this is yesterday's plan we said if this C doesn't send us lower price is going to run this yellow line that's the next Target to run a yellow line and why do I say that it's actually something we'll be talking about the upcoming classes I think actually just next class from the way I change the curriculum but like you know price targets only two things like it's only targeting liquidity and inefficiencies that's it and so this is inefficiency it it dropped a little bit at first right technically it dropped into another inefficiency this is a volume imbalance right here so it rejected the civi tapped into a volume imbalance and then after that it ran but there's nothing there's no other inefficiencies here there's only just liquidity and so knowing that what price trades for which is liquidity and deficiencies that's what led me to say okay if we don't use this then that means we're going for the yellow line it was always going to be if then statement if you didn't catch these shorts trade in London or something like that not even I think this is still Asia for real if you didn't catch shorts trading Asia which I don't recommend at all then by the time you woke up in the morning which is exactly what I did and that's why that was part of my my morning write up when I woke up in the morning I said oh the Civ got traded through okay cool yellow line and so that's why you guys saw this oh I put that in the free community I didn't put that in the in the mention Community but I just put a screenshot of my play um and so the the play that I took at 930 really was just uh just taking the trade into into the yellow line so I didn't show this part of it but I ended up scalping downside first and then as price started to come up higher once I seen us revisit the Cy that's when I got in and took it to the upside and so one might say like yo R why would you why would you go long in a Cy like isn't like a Cy or in other words a bearish fair value Gap something to go bearish on and it's like yeah it is it is you're absolutely right in context and so in context if we're truly bearish meaning the higher time frame is telling you what's supposed to be bearish that's when you can say we'll probably use this to go lower but the higher time frame I already showed you the hourly told us we're going to the Yan that's literally where the hourly told us we're going already and so any drop offs it's like one it's really suspect I don't believe in it too much but two it needs to be super heavy like super heavy so what I mean by super heavy that would require us to really if we were really going to drop and it was truly just like oh man I guess the hourly was wrong chances are this fair value Gap and this is what I mean by signatures and of course this will all be in slids eventually but as I'm talking about it here just know like if we were really going to have a hard reversal this this fair value Gap up here is likely to not get traded back to and that's why I say once I saw it trade back to it I'm just trusting my signatures that that's telling me hey coming back to this fair value Gap is a bad sign for a bear and so I believed in what I was seeing bullishly on top of that on top of that I just look at I I'm trading a 15 second and so the 15c is giving me nothing but confirmation this is an example of a 15-second Fit value Gap that never got traded back to by the way right there um but then at this point you just just taking it to the Target and ended it ended up hitting the yellow line my yellow line I redrew it for classes but it ended up hting the yellow line um but yeah you know Target hit or whatever and so that that's just easy play to take and you see all it did on this move was it just swept the liquidity that was right here you know swept this this low swept this low and then push to the upside and ran to the Target and then from there you could either take profit or you can see if price wants to move back to the upside I initially took profit then I got back in for the next move um which is the move up in the head and why did I trust that price may go to the next objective why did I trust that what do you mean by the next objective well what I mean by the next objective is after liquidity what exists above it oh look another inefficiency what look at that wow another F value that's crazy look how price traded right to that and that's really when it started retracing after that but you know if we were going to just simply sweep the yellow line if we were going to sweep the yellow line then um yeah which is this right here like if you're going to tap it and go then now I'm watching first of all this red candle we'll talk about it but you can use it on the other side but um this nearest fair value Gap right here you see this green candle let me let me refine it so you can see what I'm looking at I'm talking about this green candle that is something that you could take to go back to the other side because you guys may remember I shared a sign a signature with you where I said If you're trying to run liquidity and price doesn't exactly run it too hard or it's like it it might sweep it like y are we really done like dang is that all it want to do like you telling me we came to the yellow line just to touch it or just to really trade right above it and I swear it traded right above it too like I don't know why it looks like it just touched it yeah I knew it I'm like cuz I remember in real life like meaning this morning it definitely traded above the yellow line so I I just had redrawn it just now sloppily so my bad for that but um you know it's like is that all you want to do is just like put a hair go a hair above it you know it still looks funny now so it's like now you want to trust the nearest fair value G to take you back to the upside and so I'm watching this and I'm watching this with 15 second and I didn't get in right when it touched it you know I got in once I got confirmation back to the upside so I'm sure you know which is obviously blurry now but looking at it right now I'm sure I got in on this initial green move and then I probably got stopped out Break Even or barely negative and then I probably got back in once he's fa value Gap started forming again and then took it because um this right here would have convinced me that we're going to end up moving back to the upside so I'm sure I tried my hand at this at first and then I probably got stopped out and then try my hand at it again and the second time it worked out um and so so you know it was I remember this is a nice low run up and at that point you just watch lower time frames to see like is that what price wanted to do or is it going to retrace from now and stuff like that and you you find your exit but I think the the main the main thing that I want you guys to take from this is I got two things for you to take from that that presentation right there two things to take is first of all price is operating off of an if then statement for as far as our trading style you know so if we don't use this CBI on the 4 Hour then we're going to run the yellow line and we're getting that from the higher time frame cool you wake up in the morning and the first thing the market did was come close to yellow line but then it dropped off you should be suspect on this drop off on the one minute time frame because the hour they already told you we're going and so you should expect this dip to be bought up you should you should expect that and so seeing the the first green candle come really bullishly and then tapping into this F value Gap I told you guys that you guys just learned like another signature to where if we're going to really have that hard reversal like that often times this fa doesn't get Revisited so seeing it get Revisited is something that should be like maybe I should start thinking about going long head you don't have to get in right away but if you see something on like let's say the 15 second the 30 second or whatever your entry time frame is then entertain it I would say entertain it but uh so that's another takeaway and then once you get to the Target if you feel like it really should have gone farther you want to eye you want to put your eye on the closest fair value Gap or sometimes it's a continuation or the block which we'll talk about and that's something that you could look to take you past the target not just touching it I'm talking about going past it and then the last thing you could have taken away from this demonstration was if you have an inefficiency above liquidity or often times price will stretch past the liquidity to tap into that INE efficiency so it gives you like kind of a like yeah you could take this to Yellow Line you could trim your position I always advocate for trim your position but um most likely price would actually reach up just to clean this up it's it's almost like yo while we up here we might as well clean up this inefficiency all right now let's see what's in the chat right now milon facts I thought that Q was going to fil this morning Gap in go into the fair value Gap below it morning Gap in and go to F value Gap oh you talking about QQ hold up uh let's see QQQ and this is also by the way why I advocate for charting on Futures because you notice how everything I did on that Futures play just now was rooted in stuff that happened overnight I'm watching the 4 Hour City from you know how do we trade that there overnight oh I'm getting these targets here from like even this even this high right here of this red candle happened at 2: a.m. there's no options chart moving at 2: a.m. so the reason why I even targeted this yellow line is because these relatively equal highs and seeing that this is liquidity and then this this green candle right here too man let's really talk about it this green dogee is a 6 PM candle options is not open at 6 p.m. and so I have three highs here two of them don't on the options chart and so that's why I I always advocate for charting on Futures charts because I recognize this as a liquidity Target and so I did take this with Futures but I could have easily taken it with qqq1 options and just took calls and my calls I'll sell my calls after we cross the yellow line on the Futures chart so I really really really really recommend y'all make sure you have data for future CHS on trading view so that you could trade it instead of QQ because you'll get more information but let's see if you thought so you thought Q was going to fill the morning Gap and go f value Gap below it um I don't know which like which time frame you getting that F Val you got from but because you know it could be on any time frame so I'm not sure which one you're referencing but I would say like I said honestly watch the F just talk second of all let's see where we opened up right there and filled in Su of the gap on open but it didn't ultimately fill in the whole thing let's see uh I want to check something too while I'm here I'm wondering if basically if this is 75% of this of this Gap is what I'm wondering and yep that's exactly what it is and and I might have mentioned it to y'all recently but yeah I was I was or maybe this was only live Zoom I did with Y intraday that day but you can split up your inefficiencies into quadrants and so it touched the 75% and that's all it wanted to do today it didn't fill out the entire Gap meaning 100% but it did 50 and then it did 75 and that's all that's all they wanted um this whole Market is is coded right so it's all measurements and that's all it is but that it didn't fill out the whole Gap at least not from the hourly perspective so yeah but but no matter what like I said man I really I really recommend CH and Futures so yeah that's that's a takeway now just as far as going into tomorrow I won't even spend here spend Along on that but as far as going into tomorrow let's talk about it let's talk about it let's talk about it man okay okay so on the 4our chart we're currently so far still rejecting this city so far will this rejection hold I'm not like confident in it but it's very possible right now price is at a point where the what it's about to do next is not as clear as it usually is many times we come on these zooms whether it's the waist or it's the the price action recap part of the class and I'm able to come here and say hey I think this is happening next and we see how it plays out etc etc today we're sits right now it's not clear whether this is just the high we going to make before we make a lower low or if we're going to come into this red area first before dropping off um or if we're just going to go past it if we go past it I told you guys that's going to have me leading like fairly bullish and so I'm kind I'm still kind of in a waiting mode there was no news today it was a chop day not really much information came out of today's price action um the es es is still rejecting the the 4 Hour C we were looking at on the watch list so it did come up into this area it it's been rejecting it it's also a daily it's also a daily bearish P value Gap so this is something that could absolutely reject price it's not not a bad one especially if we stay on the lower half of it right especially if we stay the lower half of it very much potential that it could send us back to the downside and come to that 552.5579 so we'll see I kind of just want to see I want just look for confirmation that's all if you start seeing you know bearish value gaps come and get respected y'all know what's up then we could start targeting some lows but other than that we're in a waiting period right now uh I still lean barish I have no reason to lean bullish right now but I'm not convicted on it like yo we're definitely bearish n it could it could flip it could flip so I want to I'm still waiting for more information and so be patient there's news events coming on Thursday and Friday hopefully we don't chop until then but it's possible so we'll take it a step at a time the 2year is on the left side of my screen feel me the two is on the left side of my screen so on the left side you see the two came into that bsy we were looking at we want to see if this could send price back to the upside if not then it could definitely have a a retracement into these lows if the two years dropping that means NASDAQ will most lik be dropping as well okay so they move together what moves inversely typically is dxy dxy is in the middle of my screen now dxy you know we were looking to see D could come into this blue area today gave us literally nothing it's been a dogey and so you can see the 4 Hour like we did nothing today gave us no information I'm still looking to see it coming to this Blue Area next and then we'll we'll assess after that you know I told you guys that if it comes to this BL area I almost lean towards it moving past it not rejecting it I actually think if we come here we're probably going to move past it but um you know once again it's a waiting game right now price needs to give us more information it's just one of those type of weeks and that's perfectly fun and um those the only ones I want to go over right now right they coin yeah that's the only ones I want to go over right now so so yeah that's that's that I might come back to bad's deck in the middle of the slids so I'm g go ahead and move this around go to the L minute and if my thing stops lagging okay okay okay okay Monday one something like let's just look at the afternoon man the afternoon was disgusting this is the whole afternoon right here just disgusting anyways you know there's some other plays I quot to I'm not going go over them right now for time purposes but you know I was able to catch this drop and stuff I told you everything was good in the morning for me it was really just the afternoon is where those two funds that I I had kind of didn't have a good day on those the other accounts that I had do well in the morning though but yeah I'm probably going to use I know I was looking at this earlier I wanted to show youall certain things on this one minute I'm just trying to remember where I was real quick I think it's over here okay let's get to the slids let's get to them slides man let's get to them slides man all right people what block the your money does not move the market I'm sorry to break it to you you putting $500 into QQQ is not moving the market that's institutions those are the ones who really have the ability to cause major price swings in Market those are the ones that's buying or selling millions of dollars worth of shares at a time so since they're the ones who move the market your goal is to buy when they're buying and sell when they are selling that's that's your goal that's what you have to do that's your job just know that if they were to put in all if they were to put in their full order in at all at the same time it would completely throw off the market and that would actually be a disadvantage to them therefore they need to buy or sell in blocks they have to buy or sell in blocks so that's where the whole or blocks thing is coming from and you could tell when it's an Institutional Type move because you get candles that look like these like I'm telling you I don't care if you think $5,000 worth of spy is no your $5,000 does not make candles like these I promise you once you identify the impulsive move in the market look for the opposite color candle or candles plural that caus the move so this is example of like an opposite color candle that may price may end up using on the other side and then uh going bullish again order blocks are created on every single time frame every single time frame y every single time frame there's order blocks on the 1 second time frame there's order blocks on the 5c time frame and Order block on the monthly time frame and everything in between so here's the key rule for order blocks key rule number one the impulsive move must either break structure or change character on the time frame that you're taking it on and so like we just went through Market structure and talked about breaks of structures and change of characters so you guys know what a break of structure is that's continuation and change of character is when you're literally changing the trend that you're in so if you identify the origin of the move that caused that break inst struction or that caused that change of character the origin of that move may show you there's an order block at the origin of that move this is an example for you right here so you have you know look at the origin of the down move see this green candle and then all these red candles that came out of it price comes back to that green candle and then drops off you can say hey this was a order block that you might have wanted to take you might have wanted to take that one look how it changed character we were in the uptrend see you made a higher high a higher low a higher high all right cool what started the move that changed character well I would say this green candle is the last opposite color candle before that imposed move so all right bet that's your order block right there I highlighted the green candle notice that when price came back to that green candle it rejected it it rejected it and I said gaps count here right gaps absolutely count picture a gap as an impulsive candle that you just cannot see but if you were to turned on extended hours you would see it and uh I'm going show you guys what I mean for a second show you guys what I mean for a second let me leave these slides cut this chart real quick and this is largely towards my options Traders right now how you guys could could survive with this so so let's find a nice Gap let's look at QQ on the right side of my screen and there is an indicator called no gaps candles no Gap candles all right look at this look how it just got filled in look how it just got filled in I'm I'mma UNH highlight it hold on hold on hold on hold on all right look so there's a gap there now there's no Gap there's a gap no Gap a gap no Gap and so if you're having a hard time visualizing what may be a hey this is a fair value Gap by the way or what made you know you don't realize that like these three green candles for example would have been an order block these three green candles would definitely be an order block on the hourly time frame look how it ended up causing a internal change of character oh who did the homework who did the homework that's an internal change of character ain't it boom there go so then you looking at the origin of that move will will be three these three candles you may not notice it when it's a gap cuz you you don't really realize that like nah picture that as a big red candle this is this would be a order block these three green candles right there okay umya said is that to say that the order block will never be within the after hours activity no what I'm trying to say is that what I'm trying to say is that a rule that we have for order blocks is they they should cause a break of structure or a change of character and what I'm trying to show you is that in this move right here on QQQ I just randomly went to q and found this on this move right here there was a change of character that just occurred in the market we crossed under this low we closed under that low rather so boom a change of character happened and now I'm thinking like okay so dang and it happened pretty impos right you see this this big drop that caused that change of character what is the origin of that and I'm gonna highlight the opposite colored candles meaning the green candles before a red move the green candles before a red move the green candles before a red move is your order block is what I'm trying to say What I'm trying and so why I brought this up is that especially option Traders may not realize that just because there's a gap doesn't mean that these three green candles are still not in order block so if you if price were to come to these three greens and then drop off like that you know options traded they be surprised like yo what happened like why we drop it's like yo you ran into an order block but I don't see any like what you mean I don't see an impulsive move how you don't see impulses move the market absolutely dropped off look turn on the no Gap candles indicator and you'll see the huge red candle that came out of that uhuh and cool yeah and I got so much more in this in this presentation ke watch so so definitely just like look into that now Will the Market do this I think you'll understand whether or not we would trust this order block through the next couple classes after this one because then it's going to start telling you which order blocks you should pay attention to which ones you shouldn't uh this class tells you how to recognize probable order blocks but there could be a highly probable order block by definition but if if the market is it comes down to this if the market is truly bullish all bearish order blocks are going to fail you if the market is truly bearish all bullish order blocks are going to fail you I don't care how good it looked I don't care if it met every definition you talk about today I don't care because if the higher time frame tells you that we're bullish your bearish order block is not going to work because the higher time frame told you were bullish and so that's what I mean when I say if the market really did trade back up this high right now like right right now I probably wouldn't expect much out of this I'm not saying we can't react to this order block but I think it'll get bought up by some type of fair value Gap and then we're going to run the the all time high just the way it looks right now I just feel like if we came up this how we're probably going to run the hots but you know I just had to give that as a disclaimer and you'll understand why I say that better in the next couple classes but um that's all that's why I say it's all about context and that's the issue largely in the smallman community as I always say is like the context is missing you can teach people what a order block looks like but then it takes context to know whether or not you should be taking the order Block in this time period right now or whether you should be focused on what I would be focused on is let's say there's a bullish order block right here and so there might be a bullish order block I'll be looking at this instead they focus on this I'm looking at this joint because the higher time frame told me we about to run all time highs you feel me um but that's another story that is another story uh so cool so you guys just saw the no Gap candles indicator very helpful for for visuals you might want to add that to your to your list of of I don't even want to call it IND for real cuz I don't use indicators but yall catch my jerk yeah catch my jerk all right so that's that back to the slides back to the slides so the best reactions tend to come off order blocks that cause a change of character and a reminder of that is two slides ago you see a change of character price came back to it dropped off so the ones that c change characters are really highly probable often here's a common misconception yes it's straight cap an order block is only the one opposite color candle next to the impulsive move I hate when people say this I hate seeing on people's charts it just shows a lack of understanding it is not the only it's not only just one opposite color candle you saw on the QQQ example I highlighted three candles I did that for a reason I did that for a reason it's because of this lie the order block is the collection of the consecutive opposite color candles next to the impos move the key word here is consecutive and so here's the a thing that when I say that people sometimes ask me so R you tell me order block can only be like multiple candles no no no no I'm not saying that there's plenty order blocks that's just one candle I'm saying that if you do have situations such as QQQ where there's three K in a row then you need to highlight all three sometimes there's just two in a row sometimes there's just one okay then highlight one but in a case like the one that we're looking at right here oh look it was four it's freaking it's four in a row y' it's four green kles in a row so I'm going highight all four if it was six in a row I'm highlighting six and if it was 50 in a row I'mma highlight all 503 kles I don't care because as long as it's consecutive is getting highlighted but it has to be consecutive there should be no red candle interrupting this consecutive green uptrend on this time frame on this time frame okay okay are we clear can I get ones and twos on that can I get ones if you understand it can I get two if you don't understand what I'm saying hey also I mean on other time frames it might be one candle right because this is just on this time frame absolutely exactly and so if I'm drawing an hourly order block such as this I'm only looking to see if it's 4 hourly green candles I don't you know the 15 minute or look at the 30 30 minute see the 30 minute has a red I ain't tripping about that not worry about that so this is strictly for the time frame that you looking at yep good question and yeah good old ones in the chat so far it seem so perfect okay so we on the same page we on the same page now let's go ahead and get back to the slads let's get back to them slids man I got another quick question M what's up so you marked out that internal change of character down below but when it breaks the order block is not a change of character also I got you hold up let's get it right here so you're talking about this right how I had marked that out yeah yeah you mark that out but like that break on that low intermediately that's a change of character as well yeah indubitably it is all right yeah let me see well let's actually do it let's here we have it then close above all right we got to change the character right here actually so there's a we just entered a internal downt right here if you depends how you look at your this is like more of an aggressive FL Market structure but you got an internal change of character right there all right so you're officially in the downtrend then we make a lower high so you can say that this is actually a breaker structure internally if you're doing it aggressively like that this would be the interal change of character if you're not looking at it all aggressive you're just simply saying you know we made a low we put a high in the market and we we just you know impulsively move past this low like you know you're ignoring the it looks like chop right so you're kind of ignoring the chop and you're not really you know being as aggressive on your structure you're just kind of saying listen we made a pivot High the next pivot point is down there cool we cross under that pivot point you know you're not really worried about the little choppiness so depends how you look at it but you know as I told you guys I don't really you know in my in my analysis I don't really like think about breaks and structure changeing characters like for me and and I think it'll probably be even clear as we go through the slide presentation like I'm looking for specific things about order block I do want to see us cross under a low such as this for sure but I don't care if it's a breaker structure or trange of character per se as long as it's matching where I think price is going and so that's why I say first thing I always do in the market is I ask myself I ask myself where is the higher time frame trying to trade to right now and so let's say the high time frame told me we supposed to be going bearishly right now which is once again the lesson we'll be doing uh next week then that will tell me okay I'm focused on bearings and price action so if I notice that we cross under this low yeah that's that's a it is technically a change of character so that's probable anyways but I'm I'm trusting this order block and we traded back into it until we hit the bearish target until we hit the once we hit the bearish target and that's all price wanted to do I don't necessarily trust this no more because now that price had it now that price hit it higher time frame objective coming back to this this bearish order block is like logically right logically you want to ask yourself why would we be using a bearish order block if we're not bearish anymore and so how you know not bearish oh we met our bearish objective already it's time to go back to the upside bet so this bearish order block although by definition it looks good by definition it looks good but contextually it's no longer probable you might use it as a breaker though might use it as a breaker block but we're not using as an order BL no more I bearish you or not um but all that all that comes together in the next and within the next few classes everything comes together right now I just want to tell you guys definitions on what a order block is it has to cause either a breaker structure or change of character in this case aggressive structure shows you a breaker structure and not so aggressive structure you know standard pivot Points will tell you hey we we change character on this on this down move so cool let's validate these three candles as a bearish order block all right so that and uh all right so example of an order block on multiple candles see these three these three candles right here consecutive before the impulsive move that caused a break construction price comes back into it react to the upside I want to revisit this slide in a little bit I want to revisit it to show you guys why you reacted exactly where it reacted at because some people see this and you know I know they're going to think like man that's a wide stop loss and I'm going tell you guys which I I kind of talked about last class I think with you guys where on the order block you really expect the reaction from uh so first let me just cover this sometimes you have a choice of two order blacks that are on top of each other the one closer to the price action is called a continuation order block the one farther away is called an extreme order block and so what's the difference here a continuation order block don't read the words yet I'm going explain the words right now like continuation order block is a type of order block that you'll use when price is moving really aggressive l in One Direction so picture like one of you know those moves it's like dang I wish I caugh the bottom cuz we're just running right now like price is wilding out those type of moves any retracements they're probably going to use either the nearest Fit value G or the nearest Red candle that's it and for a bearish move then any when it's dropping really fast any retracement is going to retrace to either the nearest bear TR value gap or the nearest Green candle on that time frame drop right off there's green candle drop right off there's green candle drop right back off um and that's what a bearish move will look like and those nearest Green candles or in a bullish move those nearest red candles are what we call continuation order blocks and so an easy way to remember it is when price is moving aggressively in the upward Direction red candles tend to hold their support pretty solidly and when price is moving aggressively in the downward Direction green candles tend to hold pretty solidly as well those are continuation OD blocks and that's largely what I'm saying in the words right now and so the one farther aways the extreme order block and that's the one we use when we have those deeper retracements the type of retracement that you could plot on like all right I'm waiting for price to get to this spot when we get the deeper retrace price is not what we call spooling price is not moving aggressively in One Direction so when you get those deep retracements that would be like an extreme order block all right so arguably the most key tip for order blocks the most key tip like probably the most important part of presentation right here Order blocks that are overlapping fa value guys either to the left or the right of them are the most highly probable order blocks in the market hey what the what what does the underline say if price hasn't met its objective yet wow that's crazy that's what I was talking about when we when I had QQQ show up and I was saying like listen if we hit our bearish objective and price is moving back to the upside and it's respecting bullish tools on the way to the upside please stop looking at bearish stuff that's far away at this point I don't care how pretty the order block look until price now goes to its buy side objective which is going to be bide liquidity it's probably not going to react to that order block too heavily sometimes you get a little retracement off of that but it's not a reversal so you trying to plot on that bearish order block meanwhile the higher time frame is screaming at you that we're bullish right now screaming at you yet you're still focused on a bearish order block the biggest mistake from Smart Money traders but we not going to make that mistake we're better than that so ladies and gentlemen I'm probably going to tell you what a fair value Gap is cuz look how I can't I can't I can't tell you this SL without tell you where the F value Gap is and I know a lot of you guys know what it is but guess what nobody left behind and not everybody knows what it is and even if you know what it is listen to how I explain it so what is the fa value got for real I need to take a second to establish it so we can move on with order blocks because you're never going to take another order block that doesn't overlap a f value Gap unless unless unless unless unless it's a continuation order block unless it's a continuation order block block when price is spooling that's the only time you'll take these type of order blocks other than that it better overlap if fair value Gap all right um BR can you give the example of where it happens on both the left and the right of course of course I got examples for that first I got to tell you what a fite Gap is and then the examples is in in the slide presentation so first of all fav Gap is a gap of fairness let's keep this really simple it's a gap of fairness only buyers had piece of this area um this area meaning the the big blue area all right that's what I mean only buyers think about it it's a big green CLE that that shows you that buyers were in that area right rapidly moving price to the upside and um now look at the wick look at this Wick buyers and sellers had a piece of this Wick didn't they how do you create a wick that means price was once a green candle and then it got bought back it got sold back off and became a wick so that means that there's fairness here because buyers and sellers got a piece of this price action okay cool now let's look on the other side right here look at this circle buyers and sellers had a p had a piece of that price action as well so the only place that sellers didn't actually have a chance to participate in this move is this the body the body right here because even if you look at this Wick let me use my annotate tool so y'all can follow me even if you look at this Wick that I just highlighted it's a wick meaning buyers and sellers participated all right so like just look at this entire move in totality you have buyers and sell let me erase all of this you have buyers and sellers participated right there you have buyers and sellers participate in this entire this entire motion right here the only place where sellers did not get a chance to participate is literally just this green body just that just that and so therefore there's a gap In fairness because only buers had a chance and since there's a gap In fairness we just call it the fair value Gap okay and so that's why fair value G will always be the body of a candle but not the whole body of a candle right because there is a portion where sellers had a piece of it so let's look at let's look at this so if you follow what I'm annotating right now right look at this part of the green body you can't say that there was no fairness there because there's a wick right next to it that showed you that n sellers had a piece of that little action all right well let's look at this part of the body look at the bottom of the of the green candle you can't tell me only buyers had a chance right there cuz look to the left you had a wick on that Wick it shows you that buyers and sellers had a piece of this part of the price action so once again the only part where there no sell is just strictly that body that does not overlap Wicks can I get ones and twos please and please be honest y'all please be honest can I get ones and twos if y'all following what I'm saying well one so far I'm telling you if there's one two I don't care be the only person that puts a two it's it's the best environment for that par one thank you partially one okay I'll try to um I I have another slide for it too at least it might even be clear in the next slide now so look actually let's do this let's go for a second for a quick second all right bet let's look at this let's look at this beautiful people in the building let's look at this all right where so first of all a fair value Gap takes three candles to develop you have the green candle the red and we're going to need another candle it's always any three consecutive candles it doesn't really matter which three sometimes you have two fair value gaps in a row sometimes you have three in a row sometime you have five in a row on some crazy you know price runs and so it doesn't matter as long as you have three consecutive candles then there's an opportunity for a fa value app to form so right now we have one we have the red one and we're looking for a third candle to determine if we're about to make a fair value back but first let's analyze this and so inside of inside of let me see I need a tool here uh right here okay look see this green that's buyers see this part of the red that's sellers that means there's fairness right there and then when the next Kindle when the next candle pops out let's analyze that because we already could tell that the red part of this is just straight sellers there there not a green candle in sight right now this is just straight sellers on this price L but for this if you look at this you'll see that in this little piece right here this Wick signifies that there was buyers and sellers and then this wick on the right side shows that there's buyers and sellers and so the only place where it's strictly strictly sellers will be this red body until we get to the wick so notice that I stop my favor value gets right at the Wicks uh right at the wick see that's where I stop it at and so that's the fair value Gap because that's the only place where it's straight sellers just sellers alone sellers alone all right and um that's something that if it's a red one there's a chance that it can be used as a bearish one meaning when we tap into it we could sell off from it why is that why is that and why do we call this an imbalance in the first place because one there's literally no balance it's all sellers here therefore we have to bring buyers to that area so how do you don't don't over complicate this right just think how do you even get to this blue area in the first place doesn't price have to go up meaning buyers have to be a part of this move right now in order to even get us to this red area so the fact that buyers are setting price up means that at this point in time we just brought buyers to this red area now that buyers have gotten a piece of this red area something had just gotten accomplished we just brought some balance to the market and there's a chance that we can now sell off from there because balance was brought to this area cool the market the algorithm has a strong strong objective of making sure that there's balance throughout the market so when there's imbalances AKA inefficiencies it has a strong strong motive to correct those imbalances so when it Noti is hey whoa that's a whole area where it was only sellers involved bet let's bring some buyers there cool buyers got a chance all right we back to the downside with it feel me and uh so that's that's the F value Gap and hopefully that I cleared up a little bit more perfect perfect perfect and thank you for for speaking up it's like one thing we going to do in here is ain't nobody getting left behind say that right now um is this one a higher probability for Value Gap because there are bullish for Value gaps to the left no what I was talking about was higher prob maybe you meant to write order blog I feel you meant to write order blog for some reason not fig how you got and for this one this would be an order block because of the fact that let's see where it's at hold up this would be an order block by definition because of the fact that it's consecutive greens but then look it's overlapping these consecutive green kles are overlapping this red fair value G so look I'm going to draw them separately we're going to label we're going to say that is a CBI which is a bearish fair value Gap and then this green these green candles is a bearish order block so let's go ahead and label that thing a bearish ob so you see how they overlap with each other that's what we love to see we love the fact that they overlap so people hear that and somehow think that I mean oh it has to create a f at meaning when price drops there should be a fa value Gap that was created look that's nice and all but that's not what I'm talking about I'm not talking about the fact that a value Gap was created from the move I'm saying that the highly probable order blocks are the ones that overlap fair value gaps you know now said really quick are the green candles next to the red one and OB oh oh cool yeah exactly so I'm answering it by accident yeah exactly this would be an OB right there and it'll be based on how do you see this low that's a that's a change of character that's a change of character cross under this low so this impulses move or would it call this in order block so now if price were to come back up in here and reject then that's something you could look into if price is truly bearish right now I'mma always give that disclaimer if price is truly bearish right now because that's the missing element why people take bad order blocks they don't realize price is not truly bearish yet you're trying to take bearish order blocks that's where you mess up it's like how do you know if price is truly Bears stay tuned that's next week's lesson all right so cool cool cool cool hopefully that clear up cleared up all the question I can't leave nobody behind I really can't can't leave nobody behind such an important concept all right so now let's get into it look how price uses the same fair value G right here this is the gap In fairness you see this green body now that you guys know what fair value G value are this green body look how price comes to it runs to the other side like I said you need three consecutive candles to form it the second candle is what we call that Gap In fairness if the second candle has a green body that's a bullish fair value Gap and if it has a red body that's a bearish f value there's an example of a bearish fa value and I'm glad I put this one in here because people seem to think that the candle the first candle and the third candle have to be read for it to be a bearish for Value Gap and that's another misconception no for it to be a bearish for Value Gap the only thing that has to be read is the gap In fairness that's it the Gap in fairness meaning the second candle meaning the expansion candle is the thing that would have to be readed to be considered a bearish value G now in phase two I get into a little more detail about expectations based on this third candle but you know that's some other stuff but just know because the this thir does matter but regardless this is categorized as a bearish f value G because it's red if it was green it would be a bullish one look at this red one right here price came into it dropped off now I always this disclaimer right here it's so dangerous to be taking fair value guys without the full knowledge only all right and so throughout the mentorship I will explain the best fair value GS and you know expectations on etc etc so stay tuned but I just in order for me to efficiently teach you guys order blocks I had to cover fair value gaps because it wouldn't be fair to you because you're going to take bad order blocks so I need to make sure you understood that well we're going to get back to fair value gaps in the future all right does it matter how much of the order block overlaps a f terms of probability strength so I was getting to this last class where I was trying to tell yall like I was giving you guys sneak peeks a little bit I was trying to tell you guys like yo um the part of the order block that I expect price to react to is the fair value Gap part and so I really Trade Fair Value gaps it it's just like order blocks or the Confluence like you really get and then because of the fair value Gap the order block is just just form of Confluence so really let's say there's you know five green candles in a row and then a bearish value got cleans out when price trades back up you're getting in based on the fair Gap and so that's where your stop loss is based around I'm not saying you have to stop it out at the F value Gap gets invalidated but I personally would just trim I would just trim if cuz sometimes it does respect the order block and invalidate the F value but that's definitely the minority case usually you'll realize as you guys look at it more if you take order blocks like this you're going to realize that price is really reacting to the fair value gap of it more than it is the order block because the place where it actually Rejects is the fair value Gap part most of the time most of the time so here's an example what I mean this is the perfect thing to follow my statement so look at the fair value Gap part of the order block the order block is the two red candles the bullish fair value Gap is just what I highlighted bissy look where price reacted to the bissy notice it never came to the last Red candle meanwhile that's part of or block that's perfect I only wanted it to re and the fa Val overlap right there that's what price bullet um here's another one this is a before picture this fair value Gap is where we re we expect the reaction from when price revisits this area if we are indeed still bullish she's still in the waiting room in the wa room hold up I thought I turn the wa room off she in here that off so she should be good yeah the way room is is off so she should be good thank you though and um yep so so so right right so this fair value Gap notice that that's what's overlapping his order block let's look at the after picture now look what price reacted to look what price reacted to oh actually I'm tweaking this is it right here so reacted to this this is another example in the in the same sequence so down here is where where this is the after part of it price came down reacted to the fair value Gap so yeah you're like dang I'm highly in a huge area yes but where are you really looking for price to react to the fair value Gap pushes up pushes up pushes up same thing price comes down where does it react to look how this you have this whole fair value Gap it came way under the 50% of the fair value Gap but it still held the fair value guy right it still held it it just reacted to the order block conjunction so when you conjunct your PD arrays with fair value gas which we'll talk about in the future you'll realize those are the probable ones we'll get into that for real but notice this order block is in conjunction is overlapping this F beautiful um real quick can you go back to not the previous one right before this one on your this box that you're making is are you highlighting the the OB yes but why is it not stopping underneath that red candle great question I'm so glad you said that because I forgot to speak about that when I highlight my order blocks I tend to highlight the entire down move because I know this is a green Wick now so you're like oh it's not a red candle yes but you have to realize that the reason why it's order block is because there's a down move before up move so this Wick represents the fact that price did trade down first before moving back to the upside so I still highlight this does that make sense okay cool great great great and then Belle says so when does the when does the price react to an order block so it's when it revisits it so look at this before and after picture so before I'm highlighting the three red candles before a huge impulsive move and guess what there's a fair value Gap that's overlapping the three red candles oh yeah that's the magic spot the fair value spot so let's look at the after picture look down here look down here look down here so see how price ran up that's what we watched already when price retraced where did it bounce at when price retraced it bounced right at the fair value gap which is there's two in that box in that yeah but it reacted to the top one which low which is lowkey another concept and I believe I cover that concept next week I think if not it's obviously in the metor ship regardless but this is what we call painting so phase two members may remember this is this is painting this a perfect example of painting right here that's the painting bissy um and so the painting bissy is more probable than than the bissy below right now in context so we expect the reaction to be at this bissy versus the one below it anyways uh so this where you combine Concepts and stuff so you could really pinpoint all right if we retrace most likely we'll retrace to here and the beauty about this everybody is that price is fractal and so notice that I'm you might you don't even know what time frame this is I don't even remember what time frame I got this picture from it doesn't matter at all like this applies to the monthly this applies to the weekly so for times where you guys may if you've been following me for a while you guys may have not may have seen me call the top of NASDAQ and call the the last big retracement we had on NASDAQ I call that wave like months before it happened it reacted there and ran to the upside and guess what it was it was an order block from the weekly time frame so think about how much money can be made if you're getting at a weekly retracement you can take it all the way to the upside using these exact same Concepts exact same concept and so if you know the exact spot where the weekly time frame should be bouncing from there's a lot of a swing trade is in the room there's a lot of money that can be made but you need to know where you expect the reaction from it so that's the that's the power it is can you explain what K asks about the wick again my bad absolutely so uh for this you highlight the bottom all the way to the bottom because the order block will be the down move before the up move this Wick represents a down move that's why it's Wick we actually came down this low before we move higher and so I'm going to include that in my order block and and by the way sneak peek lowkey if this Wick right here if there's a fair value Gap to the left of this Wick like if there's a fair value Gap directly to the left of it you need to watch out for those type of Wicks those Wicks can send price back to the upside those be Wick OBS oh that's that we talk about all of that um boom boom okay this a nice visual for you um I'm sorry can you can you go back to the previous slide right here yeah this slide right here so at the bottom would that considers to be like two different order blocks in the box like no the order block is a consecutive red candles okay yep consecutive so don't don't think about like maybe in the past you may have heard people say it's just the last Red candle like no that's incorrect like by definition in order block is the consecutive down closed candles before the impulsive move and so therefore we have three red candles in a row the the key phrase is in a row so it's consecutive that's why we highlight the whole thing if hypothetically if this was a red candle a green one and then another red one we're only going to highlight the last red one so I just want y to know it has to be consecutive for you to highlight 03 um so this is a consecutive example where do you expect the reaction from though you you expect the reaction from the F value Gap overlap P the upside all right so in this visual here 4our time frame example let's look at this so F Val up to the left of these three red candles and emphasis on the three red candles in a row that's why they all got highlighted all treat them all right notice that these three red candles have fair value gaps overlapping it to the left oh my goodness would you look at that so when price comes back to this area it reacted okay it's holding its area still but this whole thing is a bullish OB we it's fine like it could consolidate here all at once but it still held the order block and then push to the upside and so we have um a fair value Gap to the right of it let me let me draw it real quick too in case people are have struggling seeing the F value Gap so there's a f value Gap right there where I just where I just marked on it f Gap right there and there's also a f up to the left right there okay can I get ones and twos if you see that F both F value apps if you see both Fit value apps that I'm talking about can I get ones please and notice that I just want you guys to notice that they're overlapping the order block overlapping straight one so far so where would you take the plate you're taking the plate based on the fair value gaps so you're taking the plate when price enters the fair value Gap that's what I that's when I would take the play you can still have your stop outside the order block if you please but I'm just tell you that I see the first one where you did all your drawing but when price retraced back into that order block and started to push out would we wait for that change of character break structure rather that yes we wait for the break instructure that's up to you depends how much confirmation you need I I wouldn't need that like this is a 4H hour bullish OB so what time frame do we confirm the 4 Hour with do you remember we confirm the 4 Hour with the one hour that's too close that' be the yeah Brandy said it the 15 the 15 exactly the 15 minute and so so if we have a 4-Hour POI such as this big blue area you don't have to get in inside of the blue you could wait till the 15 minute starts giving you confirmation and get in and maybe inside of here somewhere on the 15 based on the 15 minutes showing you that price is respecting the order block because the 15 minute wouldn't start wouldn't typically nothing is absolute but the 15 minute wouldn't typically start making bullish fair value gaps especially ones that are getting respected if we're not about to go to the 4our highs so the goal of this order block is simply to take you to the previous highs once it does that it did its job and so generally the 15 minute is not going to give you you know bitsies respect those bisses and everything if it doesn't have intent on getting back to that 4our high and so that's the type of confirmation I'm talking about so question when you uh if you look at after the first green second Green Arrow and so you see that green that um the green kandle that kind of comes back down to the top of the um come over no go to your left right there that green that long creen kandle right there that is also creates a fair value got okay um confusing for me like when I'm trying when it's I'm trying to make the entries yeah of waiting of like that what's happening right there is not enough confirmation to get into the play correct this is still the 4 Hour though right this still the 4 Hour well I wouldn't entro the 4 Hour like it's a 4our POI right so the 4 Hour is the POI right but you're going to be looking at the 15 minute to give you confirmation that the play is ready so you don't have to get in inside of the blue if you don't want to that's a little bit risky you really believe in it of course but you know it's a little bit risky if you want to wait for confirmation you would you would look at the 15minute time frame to react to the 4H hour point of interest and the 15 minute would take me all the way over to the other side where that red and green candle di down below the um halfway mark red and green can down halfway mark and the four hour bullet be yeah well so in this example here price came into the OB right here right it's the first visit to the order block is this and it actually worked at First and it brought you to the highest body on the 4 Hour so first of all this order block worked initially so if you were getting in on the remember this is the 4our time frame guys so remember the this is actually going to take most mple days this whole sequence took multiple days it's a 4 Hour CH so thing right right so price price gets in you you you get in somewhere inside of this Wick you take it to the 4 Hour highs Target hit you're good you got to the highest body cool price just happened to in this specific example this is obviously not all the time but in this particular example I happen to come back to the order block and I'm not one to try to use order blocks twice but doesn't mean it never happens and this is example of us using an order block twice and uh and what I'm saying here is actually the reason I really put this example in this in the slide presentation but I don't think I said it yet was if you guys notice and you got to really pay attention here right the first reaction we're getting surgical now the first reaction was to the to the fair value Gap to the right of the order block the second reaction was based on the fair value Gap to the left of the order block and this is that Wick OB I was talking y about and so it's like you might say hey we already use this F we already use this order block but like lowkey the fact that there's a fair value Gap to the left of it is why it's like you might want to be careful before you say it's invalid because it still has a chance and if you if you thought about that then hey look you made a whole lot of money cuz when it reacted to the part of it that overlaps it to the left that's when it really Skyrocket I I know we getting super surgical but I hope that it's resonating you stating at the candle color that contains a f a type of f it is yeah exactly y yeah that's that's exactly what it is because if it's a green fair value Gap in other words a bullish one then those are the the bullish ones to take and then the red ones is for for bearish moves exactly I'm glad that that helped um yeah thank you lady C for for that for helping out B with that cuz cuz Brandy actually put a a great oh she she's telling y right now perfect perfect perfect thank you guys for that thank you thank you okay cool so that's handled the Left Right Gap is the extreme no this this wouldn't be no no this not like an extreme order block type thing that's not what that say this whole thing is one order block I know it's three candles but these three candles is one order Block in itself don't separate the the Reds like no the three candles make an order block the block is comprised of three candles you know so cool um perfect perfect let's keep it moving so um this actually happened the other day example one minute order block created off of a 5 minute order block all right so we have a 5 minute bullish order block and this is this is actually the order block that we man I wonder if I can find this really quick time okay cool let me see if I can find this really quick we we took this play together y'all and it's when I made that that video on that I put it on YouTube when I took the the trade on YouTube but I I I feel I could find it if I if I look really quick I really feel I could find it it shouldn't be hard um this was last week idiot this was last week people isn't it where is that play last week boom is De found it there yeah but there is no I'm not sure you mean by extreme for Value G um because there's only extreme order blocks which is really just saying order block that's there on deeper retracements you know so about that I mean the micros and the and the minis look different so I'm just going to show you guys on the micros CU when I when I took trade I was basing off of the mic Bros chart all right so let's look at this let's look at this as an example it's trade we took together why look how much money we made good good money right good money okay so look you got these really four candles but it's the consecutive Reds price reacts right at the 50% which is just kind of the the fact that that's even happening show you that it's proof that it's like yes order blocks are the consecutive candles like it doesn't it wouldn't doesn't like Co incidence that it's reacting at the exact 50% of this order Block it's not a coincidence don't get incorrectly taught okay so what is price really reacting to here on the five minute time frame here which what I'm taking it off of which is what I'm taking it off of if I highlight the fair value Gap you'll notice that price you'll notice that price is holding the fair value Gap see as long as bodies are respecting your fair value Gap it's still valid so you see this 5 minute bullish trade value Gap right here this green body that's what I highlighted all right the consecutive Reds is the order block and so yes you can say hey this is a order block and yeah you could take a trade off of this me I'm really technically just taking my trade off of the F value de the order block for me is just Confluence I'm looking at the fair value Gap that's all I care about um uh what makes an order block extreme what makes an order block extreme what we were saying in the slides previously about extreme order blocks is that it's the the order block that's more on a deeper retracement so the continuation order block is the order block that you use when it's like price just moving really fast and we use the closest candle to us the extreme was like this this is like an extreme order block to me because it's more of a deeper retracement order block like we had to really like drop off to come and get this versus I'm might have to use a hypothetical here for this but the continuation order block would have been if we had an order block like right here so if price is running really hard to the upside and we dropped for just a second to tap into like if there was a red candle right here so I need you to use your imagination as I say these words if there was a red candle inside of my purple rectangle this baby retracement is what I'm talking about when I say continuation obes we just happen to come really quickly tap into any red candle close by on this time frame and continue to the other side those are the continuation OBS when do you expect those to work you expect those to work when price is running really hard price is going going going and then you notice that oh retracement time not is probably just going to retrace into the nearest Red candle and then continue moving to the other side that's a continuation no be when price actually starts making like somewhat of a deeper retracement like like it did right here then that's when you could say okay now we're looking at a discount order block but I don't even really use that terminology like that and now that we're looking at a you know an extreme order block I don't even use that terminology like that either but I'm just saying this is a a valid OB to take and um all right so now now you see what price is really reacting to you see this is what price really R to is the order block so that's a good visual for y to see and pain that actually this is the slide presentation so I'll just show you guys on the chart itself this is where I got it from now look at this let's look at another example go this is so beautiful so look now I'm getting excited CU I'm getting nerdy here I already showed you guys the five minute perspective right and let's show you guys the one minute perspective now as the one minute comes into a five minute order block you could look at the one minute to react let me let me back up for a second because I I know it's different it's different people in here different experience levels in here so look look look five minute move five minute order block so I wouldn't probably be on the five minute if I'm trying to enter the play technically I'm going be on the 302nd but I'm going make it easier and just go let's say let's let let's let the one minute tap into the five minute POI okay so now we're on the one minute waiting to see it react to the five minute POI as it comes out of this it's choppy so am I taking my trade yet am I taking my am do I have a reason to take my trade yet this is nasty it's almost making me feel like hey this might be a bad POI so I'm staying patient because there's no there's no fair value gaps coming out of this move so on the one minute time frame so I'm like maybe it's not ready okay whoa we got a nice F value Gap beautiful let's highlight it we got a one minute bety see we got a one minute bety so now you might think about getting involved now you might think about getting involved so let's see if price can tap into that but let's I'mma erase some things here we already know we're reacting to a f minute order block why don't we focus on one minute for a second I just showed you a one minute fair value Gap does anybody see a one minute order block I showed you the one minute Fit value up does anybody say one minute order block yes that's a real that's a real question do you guys see it one minute order the block or no Mr Vincent see it it's just Mr Vincent don't see cut is the red candle and right so what I want y to think about is this what does an order block have to do it has to cause a break of structure or a change of character what is this it it could be internal by the way it doesn't have to be an external it can be an internal it's all about context anyways and so we have an internal change of character here would you look at that how beautiful is that and I got mixed answers some people see it some people don't all right so what I need you to notice is price just did this price went down made a lower low a lower high a lower what what the heck we didn't make a lower low that's strange boom higher we made a higher high guess what we just change character internally H interesting so if we have if we have a um if we have a market structure shift y'all you want to look at the origin of that move what's the origin of that move do you guys see a order block don't tell me that y not paying to the details and thinking that I don't see three red candles did I say it had to be three I never said it had to be three if it's just one it's just one if it's just one people it's just one that's fine it does not have to be three it just could be three remember it has to be three in a row for to be3 there's only one red candle in a row here so there's only one red candle that's it boom bullish OB where do they overlap where do they overlap like like come on man look where they over L people what can I do to to show that even better matter of fact I'm going just do this you guys see it's a OB now you got see there's a fair value Gap let's strictly point out the place where they overlap which is right there that is exactly the spot where they overlap right there that is where the order block which is the red candle and the fair value with this big green candle that's where they overlap and that is where we really expect the reaction to come from what you look look at that would you look at that right at the 50% isn't it like magic I feel really really stretches down and make it exact yeah let's really make it exact for real let's really make it exact for real and show you this not this not we not just fooling around here we real surgical in the chart for real like right at the 50% that's not a coincidence people like come on and this what I'm talking about them overlaps that's what it be about like this and this play went crazy if yall remember this play went o and so like yeah yeah we was really whing out here like come on y'all see what's going on off of that that's a lot of points bro that's a lot of money that's made so would you enter the trade where reacted at the 50% if I was looking to get in this trade personally the way I would enter this trade is and you guys don't have to be like this this is just how I personally in it this is a one minute POI right so as price comes into this one minute POI I'm what what day is it Friday June 12th it probably won't show me the 15 second no more let me see the 30 second though 30 second no more either I hope I a lose my spot a lose my spot that's all right I was about to say dang I'm sick I mean I was going to show you guys that like you know you don't have to be like this once again this just how I personally like super try to snipe it's a one minute POI I'm going to validated on the 15 second and so I'll get in if the 15 second start showing me fair value gapes if the area is this small sometimes maybe I'll just get in maybe but knowing myself largely yeah I'm going to let I'm going to let the 15 second tell me I'm ready to get in because it's a one minute POI so yes I know I started at the five minute and then I targeted a 1 minute POI and then I'm looking at the 15 second to get in so like for me that's my time frame but uh I I just rather do that because what if price just kept going like what if price just came here and just and just kept dropping up now I would take a loss right so I I I rather just let the 15 second tell me it's ready yeah I might not snipe the exact bottom bottom but by the time I get in price is about to go crazy to the upside real talk so um cool cool cool so hopefully you guys like are are getting that and seeing why I talk about the overlap of a fair value G that's really that's really where the money is made largely and and then you guys will notice examples where sometimes it closes under F VAR Gap and still works like oh but real I can I can only tell you guys Things based on probabilities probabilities wise as you guys see in the example we took together that this happens really often and then sometimes it will come like I said a little bit lower and still go cool now one reminder I want to give you guys is when it comes to fair value gaps um as long as bodies hold the area the fair value Gap is valid so you guys may notice that it will Wick it can Wick under your fair value Gap but if bodies hold it that means it still works it still work yeah bro it's and I say when you hear classes the second time it hit different because like Mr Vincent for example with Kingdom my order blocks master class so he's heard some of these gems but when you hear it the second time like you catch things you might have missed and uh I'm telling you it's it's really useful so yeah that's this example right here that's literally that's where I got this picture from I was like oh this would be a great thing to put in my my presentation so then I just took a picture of it there you go this play went crazy y'all like come on now you see what's going on all right so actually for this I'm gonna I'm gonna I'm gonna cut it here and we're going to re we're going to come back to this for the rest of this presentation um because there's more I got to say there's more I got to say in this presentation how many SL yes y there's more in the order blockx presentation you probably like 12 more slides or something but I'm not going to stuff that into today so right now let's just like quickly review what we what we talked about you want to make sure I feel like this whole visual is just a good visual for everything we talked about so I'm going to use it um wherever it's at let's do this just to to recap the points to recap the points real quick that should be helpful for y'all okay so for order blocks everybody what do we want to see for order blocks we want to make sure that there is a break of structure or a change of character well did you notice one in this five minute order block I did look higher high higher low higher high what just happened a break of structure right here that is a break of structure it really doesn't matter if it's internal or external okay cool now what caused this impulsive move that simultaneously was a break of destruction oh well the origin of that is these red candles okay we're going to highlight all the red candles because they're consecutive this is a 5 minute bullish order block all right now that's a 5 minute bullish order block you can you know we can wait for price to come into this area or as you noce price coming into this area um you can watch it on a one minute if you want to my laptop is so hot I gotta end this class real soon laptop is steaming right now okay so the the one minute is coming into this 5 minute order block this is a pretty big area and you're like yo BR this is a huge stop loss bro this R this stop loss from 588 this is 60 point stop loss bro you want me to get in that no no no no no first and foremost first and foremost where do you expect the reaction to occur you're going to remember that and this this example is actually interesting because look I'm going to show you two things remember we're looking at this F Val you get first and foremost but you do want to give it room to trade to the bottom of this why and I'mma as the form of a question I want you guys to actually answer that so I know that what I said it really hit home yeah Mr V you already know why do you guys think that I would give room for price to trade to the bottom of this order block as well let's see who really was paying attention to the detail detail like I know we kind of expect it right here but why is this also probable why are they both probable situations for us so we need to watch both why not because it's still I mean yes it's because it's still the lowest point but not that's not the the real reason now so com said because of feel got tell to left Ursula say the same thing Sam said they overlap mhm uh B said it Mary said it exactly exactly so y'all all saying the same now y all seeing it I hope you got snipers if snipers in the room is noticing hey hold on there's a fair value Gap to the left of the order block two player can't can't leave that one out that one right there so this is something you would have to keep your eye on too it is cuz at the end of the day this Wick overlapping fa value Gap makes this fa value relevant cuz it it was a swing low that react to a fair value Gap and caused a higher high that means that this fair value Gap has importance so you need to watch that fair value Gap you do and so even with that being said now that you have two pois I'm going erase the whole order block because I already told y I don't give a nothing about order blocks I only care about fear you guys for order block is just for sure it's just for show we really looking at the fair value yet to be honest so being that I have two fair value guys that I'm interested in I'm going to let the lower time frame tell me which one is going to be used all right and so the one minute is something that we could use lowkey we prefer the 30 second if we're matching it up with the five minute but follow me all right we're going to use the one minute and let it tell us whether it's ready we first get a baby bounce is it ready did you see a one minute F value form nope not to the upside all right so it's not ready what you getting in the play for what you getting in the play for all right the one minute still just chopping around chopping around nothing nothing going on here nothing going on here and then oh we got our first one minute bullish fa Val I wonder if this fa be will be respected well let's see it could be respected in the upper half that's something you could look for that's another POI and without getting without getting too complicated to not scare certain people and it's only scary now it won't be scary later in the semester you have to you build your way to certain like levels of understanding with this but you would be looking at the 15 second on the upside on the upper half of this fa value Gap just to see if the 15sec can validate upside because we could have absolutely reacted right at the top of this and went higher but the 15sec gave us no confirmation so guess what no play you see why I like to confirm now because if I were have get in at the very beginning of this F Gap I would have had some some draw down before I ever made money but there was no no reason to getting the play if you looked at the 15 second in this time period guys it was it was nothing to take a play with all right so no play Then price comes in the head what do you think this looks like on the 15 seconds we starting to get our fair value gaps things are starting to go well oh yeah we even got a one minute fair value Gap forget the 15 second we even got a one minute fair value Gap coming out of a one minute order block wow would you look at that the play is ready try your hand at it try your hand at it and and change your life all right so that's how that's how you can scale your way into play that's how you could use multiple time frames to confirm and everything but so sorry real quick so on that green candle that had the fair value gap on the one minute when I switched to the 15 um second I will watch that for confirmation that the one minute is real that this one minute is real down here right you mean yeah yeah exactly exactly okay right correct so anytime enter that's why I gave you guys the I put it on Instagram too but like I know Brandy for example wrote up the the notes so thank you for that about the time frames to pair with like if I have a 4our area I'm watching a 15 minute for those fair value gaps if I have a five minute area I'm looking at the 30 second for those fav gaps if I have a one minute area such as this one I'm looking at the 15 second for those fair value gaps you know because typically the 15 second won't give you fair value gaps especially ones that are respected if it's not actually reacting to this to bring us to new highs like there's no reason to be making FAS if you're not about to go towards new highs for real um and so yeah