ОРДЕР БЛОК С НУЛЯ | SMART MONEY

Order Blocks in Smart Money Trading

The presenter explains how to identify and trade bullish and bearish order blocks (OBs) using price action, liquidity, and multiple timeframes. The method is presented as a technical trading framework. Examples are hypothetical, and no explicit “not financial advice” disclaimer appears.

Core Concepts and Formation

• A bullish order block is described as a support zone associated with large buyers; a bearish order block is resistance associated with large sellers.
• The two key formation criteria are:
  1. Liquidity is taken: price moves through a pool of stops or other orders.
  2. The move is absorbed: the next candle engulfs the manipulative candle, confirming a forceful move in the opposite direction.

Bullish OB boundaries:

• Generally, the range from the open to the low of the first falling candle, including its lower wick.
• If the second, engulfing candle makes a lower low, use that candle’s low as the boundary.
• The presenter says a bullish imbalance on the engulfing candle may justify including the upper wick.

Bearish OB boundaries use the mirror image: generally, the first rising candle’s open-to-high range, including its upper wick. Adjust the boundary if the next candle makes a higher high.

If price takes out the relevant OB extreme, the block is considered invalidated. Stop placement should account for the correctly marked extreme.

Simplified Identification Method

• For a bullish OB, look for a closed rising candle whose lower wick takes sell-side liquidity. Treat the range from its open to its low as the block.
• For a bearish OB, look for a closed falling candle whose upper wick takes buy-side liquidity. Use its open-to-high range.
• The move must be absorbed. A candle pattern that does not absorb the preceding move is not considered a valid OB.
• Analyze from higher to lower timeframes. Higher-timeframe blocks take precedence when timeframes conflict.

Trading Setup and Risk Management

The basic bullish setup is:

Liquidity manipulation → absorption or engulfing → lower-timeframe imbalance

The imbalance can serve as an entry trigger. The presenter suggests:

• Placing the stop-loss beyond the OB.
• Taking profit near the closest liquidity pool and the first problem area beyond it.
• Using a 1:2 risk/reward ratio as a reference if targets are unclear. The presenter estimates a win rate of around 40% for this guideline.

For an OB found on the 1-hour chart, inspect the 15-minute and 5-minute charts for imbalances and more precise entries.

The presenter says a significant pool of sell-side liquidity should exist before or within a bullish OB. Without it, the zone may consolidate, be manipulated repeatedly, or break.

If an OB is tested almost immediately without a prior liquidity pool, look for repeated downward manipulations as a possible sign that buy orders are being filled. The presenter also references Wyckoff accumulation schemes of types 1 and 2.

Avoid taking an OB trade when the expected supporting signs are absent; the zone may fail.

Improving the Setup and Judging Context

The presenter lists four additional factors for a stronger bullish OB:

1. It originates from another OB or an area of interest, such as an imbalance, mitigation block, or breaker.
2. It has an imbalance on the engulfing candle.
3. It breaks structure, described as a five-candle swing breakout.
4. It is supported by sell-side liquidity.

For bearish setups, these conditions are reversed, including a resistance-zone test and buy-side liquidity. RSI hidden divergence and SMT divergence are mentioned as optional, more advanced factors; the presenter advises beginners to start with the basics.

Context is emphasized as crucial. An unfilled higher-timeframe imbalance or another higher-timeframe OB can attract price and invalidate a lower-timeframe setup. For example, a daily OB may be overruled by an unfilled monthly imbalance or monthly OB below it.

Entry Techniques

Basic Entries

Basic entries are at the start of the OB range or its 50% level.

• The first level is described as more likely to react, but may offer a less favorable risk/reward.
• The 50% level may provide a better risk/reward, but price does not always reach it.

The presenter also uses inter-market correlation to judge relative asset strength:

• For stronger assets, focus on the first level.
• For weaker or lagging assets, focus on the 50% level.

Advanced Entries

Use a lower-timeframe imbalance or another area of interest—such as an OB, breaker, or mitigation block—as the trigger.

• A limit order may be placed at the start of the imbalance.
• Stop-loss options:
  • Conservative: beyond the OB extreme.
  • Aggressive: beyond the first imbalance candle. The presenter cautions against this approach unless the trader has sufficient experience.

Another advanced approach is to enter on lower-timeframe reversal formations when price tests an OB:

• Enter during the final stage of a three-drives pattern (aggressive, before reversal confirmation).
• Enter after structure breaks (confirmation).
• Enter after a pullback to the first area of interest following confirmation (most conservative).

W patterns are cited for bullish reversals and M patterns for bearish reversals. For a daily OB, the presenter suggests looking for reversal patterns on the 1-hour and 15-minute charts.

Numbers, Assets, and Examples

Bitcoin (BTC) is used in a hypothetical liquidity example:

• A fund wants to buy 10,000 BTC.
• Buying at market might hypothetically move the average entry from $100,000 to $120,000.
• A separate example refers to a fund selling 1,000 BTC before needing to cover those short positions.

Timeframes referenced include 5-minute, 15-minute, 1-hour, 4-hour, daily, weekly, and monthly charts. No specific live price, market forecast, or actual BTC trade recommendation is given.

Presenter and Sources

• Presenter: Sancho (SanchoDT).
• Additional source mentioned: The presenter’s Telegram channel, which he says contains a lesson summary, diagrams, examples, and daily market analytics.