Transcript for:
Understanding Propulsion Blocks in Trading

start using propulsion blocks it's a great as easy concept and this video I'm going to cover why so first of all we're going to look at this draw an example I have down here so let's just say that this down leg right here is an order block then price closes above the order block and then price reest this area and then creates another order block so basically an order block of an order block and this order block right here is a propulsion block and when price retest that propulsion block it should not tudge the mean threshold so the mean threshold is really a protected area that we want don't want to see get traded to and price should also have a strong reaction when it touches a propulsion block now we're going to cover a Candlestick example so we see that these two conative D candles is a order block and when price makes a close above the body it validates it as a order block then we see price makes a retracement down into this order block and then takes off and in the mean time it also creates another order block and what is this order Block it's a proportion block so we don't call it an order block we call it the proportion block and a proportion block is basically a order block of order block so when price is respecting order block and then creates another one then we see price makes a retracement down into this order block and then makes a small Mohawk fruit and takes off taking out by side liquidity and what do we also see about this proportion block the mean threshold doesn't get traded to which we want to see at a proportion block so if you were to take a potential trade entry you could either enter Rin price t as the proportion block if you wanted to then put your stop loss at the mean threshold and then Target the drawn liquidity and that makes a great with sord ratio you could even just Target internal range liquidity up here but personally if I were to take a trade entry off a proportion block I would like to put my stop loss at the low and then when price takes off I could put my stop loss in mean threshold or a break even and you can also take a trade entry at this F Gap right with in here put put your stop loss at this low if you wanted to or of course it mean threshold and then Target the buy side the quility so we really use use proportion blocks as a potential trade entry and then use to mean first as a stop loss now that we have covered what a proportion block could be used for we can now look for more examples now for a bearish example we see that price retraces up into this CI which was with an aot which is another bonus then what is this high up here this same interm mediate term High which gives another confirmation for lower prices then we see price created this order block with a c within it then price retest this area respecting the CBI and the O Block then moves lower creating another order block and this order block is now a proportion block then we see price makes a close below it retest the area and respect the mean threshold where it doesn't trade up to the mean threshold and then expands lower with a strong reaction taking out sside liquid so if we were to take a potential trade entry if you wanted to at the proportion block you could of course also take a trade entry at this order block then we would enter at the low of it put our stop loss if you wanted to at the mean threshold but this case I'm just going to put at this new intermediate term high up here and then I'm going to Target sside liquidity all the way down here and that will make a 6.1 squore ratio so that's how we could trade this proportion block here for next example we can see that price created a intermediate term low because price respected this busy then after that price takes off creating a order block then price makes retracement down into the S block also touching this small busy within here creating another intermediate term low and we can see that by Price failing to take out this intermediate term low which creates a failure swing low which means this intermediate term low is rebalanced or the rebalanced way and price did originally make a order block right here but that got disrespected and then creating another order block which mean this is a propulsion block then price makes a small retracement into the proportion block not taking out the Min threshold was a good thing and then after that expands Tire taking out bide liquidity and we see we have that kind kind of fast reaction which we wanted to see so if we take a trend entry get enter put our stop loss at this in Med term low and then Target the buy side liquidity all the way up here which make it 3.6 R so just to go over to trade again we saw the price created intermediate term low because price respected the busy then after that price made a order block it was these two consective down close candles then price made another order block which is a propulsion block this one right here and also inm mediate term low as price respected this busy and then after that invalidated or disrespected the propulsion block and making a failure swing low failing to take out the intermediate trim low and after that price made a new propulsion block which price then make a retracement down to and then we get that fast momentum which we wanted to see with a proportion block and we also see that the mean threshold got respected which means price didn't retrace down into the M threshold the ma price makes a small Wick to the proportion block fast momentum to the upside taking out by side liquidity