Arrays I - Theory

There is a lot of misconception about orderblocks, so let’s debunk them right away.

To embed a Youtube video, add the URL to the properties panel.
To embed a Youtube video, add the URL to the properties panel.
To embed a Youtube video, add the URL to the properties panel.

Theory

The whole concept of orderblocks is to spot the footprints left behind by the market making capable institutions. These footprints are traces of potential accumulations and distributions. So, either an injection or withdrawal of volume in the market.


In very simple terms, how we identify orderblocks in the EXODUS manner is as followed;


  1. -  Down candle in bullish run - Bullish OB.

  2. -  Up candle in bearish run - Bearish OB.


We are then introduced to the concept of the Mean Threshold (MT). Ideal scenario is that the orderblockwill not see price going above/below that MT point of the ENTIRE body of the candle.


We fixate on the body of candlesticks, as we mentioned in the liquidity module, majority of liquidity displacement occur in the wicks ;)


There is no rule of marking orderblocks, but for me I like to keep it simple;


  1. - BullishOB->|+|.

  2. - BearishOB->|-|.


All the orderblocks are noted with the arrows, you see how each bullish orderblock is based off a down candle before a bullish run, and vice versa every bearish orderblock is a up candle before a bearish candle/run.


Also see how the MT holds price very well during reactions, even the old bearish OB giving MT reaction to the far right on that wick.