📈 Trading Entries: Order Block, Breaker Block, and FVG (Fair Value Gaps):
When making a purchase, whether in Long or Shorts, it is important to know these key details in our chart patterns.
Modern institutional trading often relies on identifying footprints left by large operators, and three key patterns for determining entries are the Order Block, the Breaker Block, and the Fair Value Gap (FVG).
Order Block (OB).
An Order Block:
Is the last candle (bullish or bearish) before a significant impulsive movement that breaks the market structure. As seen in your first image, it is interpreted as the area where large orders were placed.
For buy entries (long), a bullish Order Block is sought (the last bearish candle before the rise).
For sell entries (short), a bearish Order Block is sought (the last bullish candle before the drop).
Breaker Block:
The Breaker Block is similar to the OB, but it forms when a previous Order Block is initially respected but then broken by the price. When broken, the previous support zone becomes resistance (or vice versa), as illustrated in your second image. This role reversal makes the Breaker Block a high-probability re-entry point.
Fair Value Gap (FVG):
A Fair Value Gap is an inefficiency in price, a gap that occurs when a strong movement creates a lack of overlap between the bodies of three consecutive candles.
Your third image shows that the gap between the wick of the first candle and the wick of the third candle is an area that the market often seeks to "fill" to rebalance before continuing its direction. It is a key area to look for entries.
By combining these candle patterns, traders look for the price to return to these specific zones to execute buy (long) or sell (short) entries accurately. It also refers to retesting, or the movement of deception. #StrategyBTCPurchase $BTC
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