OB - Order Block

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ORDER BLOCK (OB)

BULLISH OB Which swing makes the MSB? So, the last RED candlestick starts
that swing our BULLISH ORDER BLOCK (DEMAND)

Must Break This LH HH


LH

LH MSB (Strong)

LL

MSB happens
with this swing REACTION
LL

Deepest LL DEMAND (BULLISH ORDER BLOCK)

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ORDER BLOCK (OB)

Must Break This LH

MSB happens
with this swing

MSB (Strong)

REACTION
REACTION
DEMAND OB

Deepest LL

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ORDER BLOCK (OB)

BEARISH OB Deepest HH
SUPPLY (BEARISH ORDER BLOCK)

HH REACTION
MSB happens
with this swing

HH

HL
MSB (Strong)

HL Must Break This HL


LL

Which swing makes the MSB? So, the last GREEN candlestick starts
that swing our demand BEARISH ORDER BLOCK (SUPPLY)

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ORDER BLOCK (OB)

Deepest HH

REACTION SUPPLY OB

MSB
MSB happens
with this swing

Must Break This HL

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ORDER BLOCK (OB)

CONSOLIDATION & OB
Must Break This LH

HH
LH Breaks
MSB (Strong)

LH MSB (Strong)

Can’t Break
LL Can’t Break
MSB

MSB
REACTION

LL
3
2 DEMAND (BULLISH ORDER BLOCK)
Commonly MSB doesn’t happen without consolidation.
Find the last swing that breaks the MSB. 1
(NUMBER 3)
Deepest LL

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ORDER BLOCK (OB)

Must Break This LH

MSB (Strong)

REACTION
OB
3
2

Commonly MSB doesn’t happen without consolidation. 1


Find the last swing that breaks the MSB.
Deepest LL
(NUMBER 3)

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ORDER BLOCK (OB)

SUPPLY/DEMAND from OB CANDLESTICK


DRAWING
SUPPLY / DEMAND

DEMAND ZONE OB Stop-Limit


Order

There are no rules about how to


draw order block supply/demand
zones (Depends on Trader)

Stop-Limit The most critical point is the mid-


DEMAND ZONE OB Order
level of the candlestick.

I personally use the body of the


candlestick as supply/demand
zones. If the body is so small, I
DEMAND ZONE OB also take the wicks.
Stop-Limit
Order

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ORDER BLOCK (OB)

BREAK of STRUCTURE (BoS) HH

HH BoS
Some traders call this
BoS or CHoCH

BoS
HH
LH

LH MSB HL

NOTE
LL HL
MSB is the rst possible trend reversal point. BOS is a
continuation of the trend with a new HH each time.
Some traders call MSB as BoS. Names are unimportant.
Deepest LL LL

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ORDER BLOCK (OB)


ORDER BLOCK
ORDER BLOCK? (BoS CREATOR) or NOT?
(BoS CREATORS)
BoS

BoS Seen so many traders that use


BoS to identify Order Blocks
Usable OB?
MSB
Actually, every swing point has a
micro MSB in lower time frames.
Micro MSB (Low Time Frame)

Usable OB? The question is which Order Blocks


are tradable?

Depends on Key Levels, Support,


Quality OB
Resistance, Imbalances, candlestick
Deepest LL patterns, etc…

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ORDER BLOCK (OB)


ORDER BLOCK
ORDER BLOCK? (ENGULFING PATTERN) or NOT?
(ENGULFING PATTERN)
OB? MSB

Seen so many traders that use


Engul ng Pattern as Order Blocks

But Engul ng Pattern is


everywhere

We cannot consider them quality


OB unless there at signi cant
price levels such as swing points
(creating BoS or MSB), key levels
MSB
OB? (High, Low), support/resistance
etc.

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ORDER BLOCK (OB)

QUALITY OB PART 1 HH

HH

BoS Random
HH
LH Engul ng Pattern
(Useless)

LH MSB (Strong)

Useful
Engul ng Pattern
Imbalance
REACTION
LL

Useful
Engul ng Pattern EXTREME ORDER BLOCK HIGHEST QUALITY
Deepest LL LL

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ORDER BLOCK (OB)

QUALITY OB PART 2 Most of the time retail traders


cannot push the price like that
Only market makers or a big catalyst
Fast Pump (news, deals, etc..) can do it Slow Raise

MSB MSB

Imbalance REACTION No or Small


Imbalance
REACTION

OB
OB

HIGHER QUALITY OB LOWER QUALITY OB

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ORDER BLOCK (OB)

QUALITY OB PART 3

Slow Pullback

MSB

Imbalance
REACTION

OB

Fast Pump Slow Pullback Time

HIGHER QUALITY OB

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ORDER BLOCK (OB)

QUALITY OB PART 4

Break MSB Break MSB


at Once After RANGE

MSB MSB

REACTION

REACTION OB

OB

HIGHER QUALITY OB OK QUALITY OB

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ORDER BLOCK (OB)

QUALITY OB PART 5

MSB

REACTION

$10
OLD RESISTANCE NEW SUPPORT (Round
Number)
Monday, 4 Hours, Day, Week, Month, Year (Low, High, Open, Close)
Volume Pro le HVN
KEY LEVELS

Support / Resistance Areas & Flips


Other P.A. Supply / Demand Zones
Round Numbers
Key Levels (High, Low, Open, Close)
HIGHER QUALITY OB Volume Pro le HVN

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ORDER BLOCK (OB)

QUALITY OB PART 6 NOTE

First test to every price action structure (OB, IMB, BB,


etc...) will have the high-quality reaction.
Others are unreliable/unknown

MSB

1 2 3 4 OB

Test 1 (Highest Quality Reaction) Test 2 (Unknown) Test 3 (Unknown) Test 4 (Unknown)

REACTIONS
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ORDER BLOCK (OB)

QUALITY OB NOTES

INCREASE OB QUALITY NO CHANGE or DECREASE OB QUALITY

Works Better on High Time Frames (HTF) Work Ok on Low Time Frames (LTF)

Key Levels (Support / Resistance)


No Key Levels
(Monday High, Month Close, Week Low, etc…)

Imbalances, Pumps, Dumps changes market structure, MSB or BoS No Imbalance, No Big Candlesticks with Volume
(Fast Expansion) (Slow expansion)

Engul ng Pattern at Swing Points (HH, HL, LH, LL) Random Engul ng Patterns

Untested OB zone Tested OB Zone (Second or More)

Breaks MSB or BoS at once strongly without consolidation/range Consolidation with little swings before MSB or BoS

Support/Resistance Flip (S/R Flip) Areas No S/R Flip

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ORDER BLOCK (OB)

SUPER ORDER BLOCK


1. Strong Market Structure Break (MSB)

Break MSB
at Once (No prior RANGE) Slow Pullback
2. MSB happens at once without prior range

MSB (Strong)
3. MSB happens with imbalance (pump) 

Imbalance 4. Engul ng Pattern 


REACTION

OB Mid-Level 5. Fast Pump/Dump, Slow Pullback


First TEST OB
This Engul ng PATTERN is at a very critical
point. (Deepest LL) Makes Order Block even
Higher Quality
Key 6. Key Levels
Fast Slow Pullback LEVEL
Pump Time

7. First test to OB Supply/Demand Zone


SUPER QUALITY OB

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ORDER BLOCK (OB)

Slow Pullback

MSB

Imbalances REACTION

OB
Engul ng PATTERN
Deepest LL First TEST

Prev
Fast Month Low
Slow Pullback
Pump Time

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ORDER BLOCK (OB) ENTRY 1 (RISKY SNIPER)

NOTE

Using STOP-LIMIT order from the


middle point of order block
candlestick

TAKE PROFIT

MSB

2R/3R
ENTRY
OB Mid-Level (STOP-LIMIR ORDER) OB
1R
STOP (LOW POINT of OB CANDLESTICK)

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ORDER BLOCK (OB) ENTRY 2 (RISKY REVERSAL)

NOTE

Identifying PIN-BAR, HAMMER, SPINNINGS


and waiting for the next green candlestick

TAKE PROFIT

MSB
1.5/2R
ENTRY

1R OB

STOP (LOW POINT of OB CANDLESTICK)

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ORDER BLOCK (OB) ENTRY 3 (SECURE LTF)


DAY TRADE / SCALPING HIGH QUALITY ORDER BLOCKS
High Time Frame (HTF) Low Time Frame (LTF)
45 Mins
Find a High Quality Order Block Find a Secure Entry

1 Day 4/1 Hours or 45/30 Mins


MSB (Strong)
4 Hours 1 Hour or 45/30/15 Mins

3/2/1 Hours 30/15/5 Mins (Scalp) OB

30/15 Mins 5/3/2/1 Mins (Scalp) ENTRY

MSB

OB
NOTE

Identify OB in High Time Frame (HTF), make entry


in Low Time Frame (LTF) with MSB Entry Zone
(Order Block after Order Block) 4 Hours

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Mete Kaplan

@InvestingWithMK

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assets, or any type of investments.

Mete Kaplan is not registered as an investment adviser or is not a CPA with any federal or state regulatory agency in any country. The information
shared in this document, video, social media post or blog post is my (Mete Kaplan) personal opinion only, which may or may not be accurate.

Any trade that is taken based upon our educational or research materials is at your own risk for your own account. Trading foreign exchanges (forex),
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advice, trading advice, or financial advice. The information is not meant to be a solicitation or recommendation to buy, sell, or hold any financial
securities, assets or any type of investment.

Disclaimer
All the materials supplied (voice, speech, text, images, documents, or other conveyance of information) and information shared in this document, video, social media post
or blog post are provided for educational and entertainment purposes ONLY.

All the materials supplied (voice, speech, text, images, documents, or other conveyance of information) and information shared in this document, video, social media post
or blog post should not be construed as investment advice, trading advice, or financial advice. The information shared in this document, video, social media
post or blog post is not meant to be a solicitation or recommendation to buy, sell, or hold any financial securities, assets, or any type of investments.

Mete Kaplan is not registered as an investment adviser or is not a CPA with any federal or state regulatory agency in any country. The information shared in this
document, video, social media post or blog post is my (Mete Kaplan) personal opinion only, which may or may not be accurate.

Any trade that is taken based upon our educational or research materials is at your own risk for your own account. Trading foreign exchanges (forex), cryptos
(cryptocurrencies or coins), stocks, options, commodities, ETFs, mutual funds, index funds, or any other type of financial securities on cash accounts or margin accounts
may not be suitable for all investors and could be highly risky.

Mete Kaplan @InvestingWithMk

Would you like to Learn How to Trade & Invest for FREE?
You may check out my YOUTUBE channel

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