A trader explains how to spot order blocks, the zones where sellers dump before buyers push price higher. He uses a sniper scope analogy to show how to zoom in on the exact entry point when price breaks a previous high and forms a new trading range.
So price is going to have a high here, and then that high is going to get broken, and that's your market structure break. And then this high starts to form. And we now have our trading range. So you have the swing low, and you take that all the way up to the swing high that formed after the market structure break. What we're now looking for is the point of interest that led price to create that higher high. So this is your order block.
In terms of your order block, how are you identifying an order block?
For me, it's very simply the down move, before move that went up and broke market structure.
So we're on the way down. We've already been down a few times. And then you have your bullish candle. Are you saying that your order block essentially would be like that? Assuming this
continues to make a new swing high, you can also combine these. Think of it as the selling that occurred before the buying that took out this high. What we're looking for here is you think of it as like a scope with your sniper. This is where we're zooming in now.
