Summary of "ALL BLOCK (BREAKER,RECLAIMED,MITIGATION...) TYPES In SMC | HINDI | BANKNIFTY| LECTURE~7"
Summary of Video: ALL BLOCK (BREAKER, RECLAIMED, MITIGATION...) TYPES In SMC | HINDI | BANKNIFTY| LECTURE~7
This detailed lecture by Gwaire focuses on advanced Smart Money Concepts (SMC) and Inner Circle Trader (ICT) methodologies related to different types of order blocks used in trading, particularly for Bank Nifty and Nifty indices. The session extensively covers the identification, logic, and application of various blocks including Advanced Order Blocks, Mitigation Blocks, Breaker Blocks, Rejection Blocks, and Reclaim Order Blocks. The presenter emphasizes understanding market structure, liquidity, fractal nature, and price action to plan trades effectively.
Main Financial Strategies and Concepts Presented:
- Advanced Order Blocks (AOB):
- Order blocks are significant candles where large institutional orders are placed.
- AOBs differ from traditional order blocks by not necessarily involving Fair Price Gaps (FPG).
- Use Fibonacci retracement (0, 0.5, 1 levels) to identify premium (sell) and discount (buy) zones.
- Buy at discount zones in an uptrend; sell at premium zones in a downtrend.
- Mark order blocks using last buying/selling candles; consider overlapping FPGs to decide whether to take full or partial blocks.
- Use Mean Threshold (0.5 level) to confirm entries and exits.
- Mitigation Blocks:
- Formed when price fails to break a swing low/high, signaling a failed swing.
- Price revisits and taps these blocks, offering high-probability trade setups.
- Confirmed by overlapping order blocks and FPGs for stronger trade signals.
- Important to align with higher timeframe bias to avoid false signals.
- Mitigation Blocks often act as support/resistance but with underlying logic related to liquidity and order flow.
- Breaker Blocks:
- Similar to Mitigation Blocks but involve liquidity grabs on both buy and sell sides.
- Bearish Breaker Block: Price takes buy-side liquidity first, then sell-side liquidity, before continuing downward.
- Bullish Breaker Block: Price takes sell-side liquidity first, then buy-side liquidity, before moving upward.
- Differentiated from Mitigation Blocks by the sequence and nature of liquidity grabs.
- Breaker Blocks often signal a market structure shift and continuation of the trend.
- Rejection Blocks:
- Characterized by multiple wicks (at least two on lower timeframes) indicating price rejection.
- Price fails to close beyond 50% of the wick/body, signaling a high probability of reversal.
- Used for short-term trades with tight stop losses.
- Must be confirmed with market bias and liquidity zones for higher success.
- Reclaim Order Blocks:
- Formed after a market maker buy/sell model where price shifts structure after filling orders.
- Represents a retest or reclaiming of previous order blocks after a market structure shift.
- Important to identify swing highs for down moves and swing lows for up moves.
- Used to plan entries after displacement and structure shifts.
- Overlapping with FPGs and order blocks enhances trade validity.
- Market Structure and Liquidity Concepts:
- Emphasis on understanding internal and external liquidity (e.g., previous day’s high/low).
- Fractal nature of markets: higher timeframes confirm trend direction; lower timeframes provide entry clarity.
- Importance of aligning trades with higher timeframe bias.
- Liquidity hunts and stop-loss clusters are key to understanding price moves.
- Use of Fibonacci retracement and mean threshold levels to mark trade zones.
- Trade Planning Methodology:
- Identify the block type based on candle structure, liquidity, and market bias.
- Use overlapping FPGs and order blocks to confirm strong setups.
- Place stop loss beyond the block or FPG.
- Set targets based on liquidity zones, previous swing points, or higher timeframe PI (Price Interest) zones.
- Avoid counter-trend trades unless supported by strong confirmation.
- Understand the psychological aspect of trades and liquidity generation.
Step-by-Step Guide to Using Blocks for Trading:
- Step 1: Understand and identify the market bias and structure on higher timeframes.
- Step 2: Mark Advanced Order Blocks using last buying/selling candles and confirm with FPG overlaps.
- Step 3: Use Fibonacci retracement (0, 0.5, 1) to identify premium and discount zones.
- Step 4: Identify Mitigation Blocks by looking for swing failures and price retests.
- Step 5: Differentiate Breaker Blocks from Mitigation Blocks by liquidity grab sequences.
- Step 6: Recognize Rejection Blocks by multiple wicks and failure to close beyond 50% of wick/body.
- Step 7: Identify Reclaim
Category
Business and Finance
