Whether an order block will hold and reverse the price cannot be guaranteed; while it indicates a potential area for price reversal due to accumulated buy or sell orders, several factors like market conditions, price action, and volume need to be considered to assess the likelihood of a reversal at that level
To evaluate whether a bearish order block will hold the price, it typically need to consider several factors, including:
1. **Market Context**: Understand the current market sentiment (bullish or bearish) and trend. Is the overall market in a downtrend, or is there potential for a reversal?
2. **Time Frame**: The significance of an order block can vary depending...
Misidentification of an order block can often lead to unexpected failures in trading setups. Here are some common reasons traders misidentify order blocks and how to avoid these mistakes:
1. Choosing a Weak Zone
Mistake: Traders often pick minor price levels where there is no strong accumulation or distribution by institutions.
Solution: Focus on areas...
Here’s an analysis of the situation:
Bearish Order Block Defined:
The bearish order block is the last bullish candle before a significant downward movement, often acting as a supply zone where sellers are expected to be strong.
Reasons for the Wick Break:
Liquidity Grab (Stop Hunt): The wick could represent a liquidity grab, where price...
