The "Explosion Zone"? 💥 The Secret of the Order Block in SMC School
Have you ever wondered why the price bounces hard from certain areas and ignores others? The secret lies in the "institutional supply and demand areas" or what we call the Order Block.
What is the Order Block (OB)?
It's the last bearish candlestick before a strong bullish movement, or the last bullish candlestick before a strong bearish movement. In these areas, market makers leave their footprints (pending orders that haven’t been filled yet).
Conditions for a strong Order Block:
1️⃣ Momentum: It must be followed by a strong and rapid price movement.
2️⃣ Break of Structure (BOS): This area should cause a break in the previous market structure.
3️⃣ Fair Value Gap (FVG): It’s preferable to have a price gap immediately after the area to ensure the price doesn’t return to it anytime soon.
Currently, I’m watching an ideal Order Block on chart
$ETH , and
$BTC $SOL and the price is approaching it for a test. Could this be the fuel for the next launch? 🚀
Share your thoughts: Do you use traditional support and resistance zones, or have you started shifting to Supply and Demand areas?
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