Understanding Order Blocks in Trading

here. Once it starts rallying, every down-closed candle or series of

down-closed candles, if there's ever a series of down-closed candles, you use

that entire block of down-closed candles as one. Because it's delivery that you're

looking at, not just simply one candle. One candle does not make a narrative. One

candle doesn't make a order block. It's this change in the state of delivery

that is the order block. What do I mean by that? Let's dig into this. Three

down-closed candles. That opening price right there. That candles opening price.

You're gonna look at this this value right here. Okay. Look up here in the

upper left-hand corner where I'm pointing. That's the open. That price is

$4145.75. As soon as that price is traded to, and one tick above it, that

becomes an order block. So young men and young women, please stop making videos

pretending you're teaching order blocks. Because you have no idea what the hell

you're talking about. This change in the state of delivery right there. Once this

occurs on that candle, this opening price becomes fair value. That means that the

market, when it trades through it here, it's gonna want to do what? Offer smart

money to traders that some of you don't believe exist. When it comes back down

and touches that, they're buying it. When it trades on this candle here and

trades and goes down to it again, they're buying it. Their algorithm, their

algorithm, which is high-frequency and it's hammering, hammering, constantly

hammering the market at these price points. They're buying it here, they're

buying it here, they're buying it here, and they're buying it here. Every single

time we leave a down-closed candle, they're watching their positions move

into profit. Every time that we see a new change in the state of delivery,

it's offering them another opportunity to build their position and build it

larger.