Understanding Market Order Blocks

And it's an order block right there, right?

Wrong.

Wrong.

That is not a bullish order block. Why is that not a bullish order block?

I just taught you moments ago. Think about it for a second.

Why is this down closed candle not an order block?

What is it?

It's a mitigation block.

Allow me to explain.

We have this low

up to the high of the bull flag. I'm gonna take this level off 'cause it's

a little

too much information.

Okay, so we have that range. So that's your dealing range.

Why is that a dealing range?

Why is that a dealing range?

Am I gonna reinvent the new, new definition for it? No.

Sell side, taken, rallies. Above here,

buy side. So we've done both directions.

So you run your low

to high.

Equilibrium is right here.

If the market's rallied,

is that a bullish order block if we're above equilibrium?

Hell no, it's not.

Absolutely not. Now, can price come down to it

there and have a little reaction? Absolutely. That's the bait.

What you're gonna wanna see is that down closed candle

trade through it.

Weaker-minded individuals that would use that as a

catalyst or springboard for higher prices,

they're in a net loss when it trades below it, right there.

So now in their mind, they're thinking, "I would really like an opportunity to get

out of this losing trade and mitigate that loss."

Oh, well, now if you take that...

I know it's hard not to smile, ain't it?

Man, this is so good, and it's fucking free. You're damn right.

So here's that down closed candle.

Look at the high, and look how that performance is right there.

It overshoots that

fair value gap.

Where does it go? If it's gonna color outside the lines of

that, where's it gonna

go? The mitigation block right there.

Sorry, folks. Nobody else teaches that.

Just me. Good old ICT