Arrays I - Feedback OB

Feedback OBs are basically a term that refers to a consecutive relay of your supply or demand chain. IE -> in simple terms, an extra confirmation that either buyers or sellers are in control.

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Theory

Just like with the expansion and reversals. Don't fuss too much about correct labeling, the concept is what matters the most.


Feedback is a double mitigation of your narrative chain.


So, if your narrative and bias is short favoring sell side, feedback would mean that two of your supply side orderblocks have been respected consecutively.


Vice versa when you are looking at buy side, it would mean that two OB's have been respected consecutively.


The second one in either case is the feedback ob.


Take a look - Buy side example


The thing that we want to see here is the response, the feedback in essence. Price does come back to the original orderblock, but once it confirms a new higher high it lines up better with the feedback OB. It's a more conservative approach to your entry models.


Let me ask you this. After a protected low, this feedback OB in combination with a MS creates what?


A strong rollover. So, you're basically putting the puzzle pieces together of the missing links you had previously, you want strong rollovers if you are trading reversals. And now you have an extra tool in your arsenal.

Sell side example ;

Beautiful example, see how we create that up candle before the selloff?


Just like that we create feedback, this then gets relayed into the short side to draw our weak lows, SSL.

It isn’t rocket science.