HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

How to Use Orderblock in Forex Trading?


An order block represents the process of collecting orders from financial institutions and banks. The forex market relies on central banks and major financial institutions. It is therefore imperative that traders understand how the market works. Whenever the market builds an order block, the price moves like a range where most investing decisions occur.

What is the order block?

It is not common for financial institutions to invest in trading instruments suddenly. Instead, the best trading results can be obtained by spending a lot of money on analysis. In addition, they often deal with money that is impossible for retail traders to acquire. In trading, smart money makes several decisions depending on the availability of prices.

The trade-in takes place in three or four steps, for instance, if a bank wishes to purchase $100M EURGBP. Their first step will be $20M, their second step will be $50M, and their third step will be $30M. When quotas of $100M are fully utilized, prices fluctuate.

There is no order block under every range, but the idea of order blocks is similar to ranges. Furthermore, we have no idea when and where the smart money moves. Thus, we will identify an appropriate order block based on the best location and price action. Along with the order block, we must also understand the order flow. Normally, when a price moves from an order block, it will provide an order flow in any direction. However, higher-timeframe order flows indicate a market direction, where we have to identify order blocks in that direction.

Order block trading strategy

Previously, we discussed what an institutional order block and order flow are. With this strategy, we will enter the trade between one hour and four hours or the daily timeframes and identify the order flow using the weekly timeframes. Further, we will discuss the timeframes and currency pairs used in the order block trading strategy.

Timeframes

Currency pair

In addition to being profitable in all currency pairs, this trading strategy is effective on all exchange rates. We have examined the system extensively and have found that it is effective in all major currency pairs, such as GBPUSD, EURUSD, USDJPY.

Bottom line

An overview of the order block strategy would be as follows:

#source


RELATED

The Comprehensive Guide to Copy Trading

Copy trading, an innovative and adaptive strategy in the trading realm, offers participants the opportunity to emulate the trades of often more seasoned traders, all in real-time...

What is an IB brokerage account?

An IB brokerage account, also known as Introducing Broker account, is the account that an IB opens to gain access to all the features that a forex IB program offers...

Position Trading vs. Swing Trading: Differences and Similarities

Position trading and swing trading are two prominent trading strategies that you can use to access the markets. Both methods provide market opportunities as you trade...

Understanding the Difference Between Trading and Investing

In this article, we are going to talk about the differences between trading and investing. They are wide-ranging however, they are both good ways of potentially making...

The gamification of trading and the case for financial literacy

Trading apps are attracting younger audiences with new investment approaches and appetites, sparking knee-jerk reactions from regulators and media...

What Are Swaps In Trading, And What Are They Used For?

Swaps help all market participants to enter into contracts that will be profitable in a particular situation. They reduce the risk of market transactions and can increase potential profits...

Trading Highly Liquid Currency Pairs: A Comprehensive Guide

Venture into the dynamic domain of trading fluid currency pairs. Dive deep into understanding the moments of rise and fall, uncover the forces that mold each currency...

The Most Popular Myths About Bitcoin Debunked

During the existence of bitcoin and other cryptocurrencies, a large number of erroneous judgments have appeared about them, which continue to spread among people even now...

What is spread in Forex?

Spread is one of the main conditions for trading and investing in Forex. You should know what Forex spread is if you want to trade in the foreign exchange market...

Top commodities to watch in 2024: gold, oil, and others

As we progress through 2024, the commodities market is emerging as a key area of interest for investors seeking to diversify their portfolios and hedge against inflation. With insights from Kar Yong Ang, a financial analyst at Octa broker, we explore the most promising commodities of the year, including gold, oil, lithium, and others, and provide strategies for traders to navigate these opportunities effectively.

Cent and standard accounts: differences and similarities

Trading on the Forex market always starts with creating a trading account. At FBS, this process is simple: you choose an account to your liking, register, and verify it...

What should you know about cryptocurrencies?

eXcentral is expanding the number of assets and markets available for traders to invest in every month. One of the highest growing markets, if not the highest...

TOP8 Mistakes Forex Newbies Make

We all can be wrong from time to time. It's a common thing for the people who would like to gain experience in any area of life. There are no actions without mistakes...

Ultimate guide to trading Polkadot for beginners

Blockchains and the innovations they offer largely existed as isolated entities in the crypto space, unable to share value or communicate with each other...

What are CFDs?

Before venturing into what are CFDs, first let’s take a quick look at the forex market. The forex market is the largest financial market in the world...

The Discipline of Setting your Stop-Loss Order

Are you wondering how you can more easily manage and monitor your trades? This article will show you the benefits of setting stop-losses in your daily trades!

Trading terminal MetaTrader 4: features and capabilities

Trading terminal MetaTrader 4 is the most popular software solution for financial market trading today. The platform boasts user-friendly interface, easy...

Tips for Selecting a Forex Broker

The online world has grown rapidly, providing a diverse range of financial opportunities that were previously limited to traditional marketplaces.

Trade Silver Online: A Complete Guide for Beginners

To start with, what is silver trading? Traders have highly valued silver for many years now. The metal has various usages including jewellery or as a form of currency....

Why Trade Precious Metals

Precious metals are a popular way to diversify a trader’s portfolio. They also act as a hedge against currency inflation or economic instability. Examples of the three most popular traded precious metals are gold...

FP Markets information and reviews
FP Markets
81%
RoboForex information and reviews
RoboForex
77%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.