Auto Orderblock With Break Of Structure

What is the Auto Orderblock With Break Of Structure?

Auto orderblock with break of structure is a powerful trading strategy used in the forex market. It is a technical analysis method that seeks to identify key levels of support and resistance on a price chart and use them to determine potential entry and exit points for trades.

An orderblock is a price level where a large number of buy or sell orders have accumulated, creating a zone of strong support or resistance. When price breaks out of an orderblock, it indicates a shift in market sentiment and can lead to a significant move in the direction of the breakout.

The auto orderblock with break of structure strategy uses automated tools to identify orderblocks and monitor price action for potential breakouts. By using this approach, traders can quickly identify high-return trading opportunities and take advantage of them with precision and speed.

Auto Orderblock With Break Of Structure Strategy

Here’s a strategy for auto orderblock with break of structure in forex:

Step 1: Identify Orderblocks

  • Use an automated tool to scan the forex market and identify key orderblocks. These can be areas of support or resistance where a large number of orders have accumulated. Orderblocks can be identified using price action tools such as swing highs and lows, trend lines, and moving averages.

Step 2: Monitor Price Action

Step 3: Wait for Breakout

  • Once the price action around the orderblock has been monitored, wait for a breakout. A breakout occurs when price moves outside the boundaries of the orderblock, indicating a shift in market sentiment. Look for a significant price move in the direction of the breakout, which could indicate the start of a new trend.

Buy Signal

auto orderblock with break of structure Buy Signal
auto orderblock with break of structure Buy Signal

Here are the details of a buy signal for auto orderblock with break of structure in forex:

  • Identify an orderblock area on the chart where a large number of buy orders have accumulated, creating a zone of strong support.
  • Use an automated tool to monitor the price action around the orderblock. Look for signs of consolidation or a buildup of buying pressure, such as bullish candlestick patterns or an oversold condition on the RSI.
  • Wait for a breakout above the upper boundary of the orderblock area. This indicates a shift in market sentiment and the potential start of a new uptrend.

Sell Signal

auto orderblock with break of structure Sell Signal
auto orderblock with break of structure Sell Signal

Here are the details of a sell signal for auto orderblock with break of structure in forex:

  • Identify an orderblock area on the chart where a large number of sell orders have accumulated, creating a zone of strong resistance.
  • Use an automated tool to monitor the price action around the orderblock. Look for signs of consolidation or a buildup of selling pressure, such as bearish candlestick patterns or an overbought condition on the RSI.
  • Wait for a breakout below the lower boundary of the orderblock area. This indicates a shift in market sentiment and the potential start of a new downtrend.

Auto Orderblock With Break Of Structure Pros & Cons

Pros

  • High probability of success: Identifying and trading orderblocks with a breakout strategy can provide a high returns of success as it is based on a strong area of support or resistance.
  • Objective trading decisions: An automated tool can objectively identify orderblocks and monitor price action, providing traders with a clear trading signal that removes the subjective interpretation.

Cons

  • False breakouts: False breakouts can occur where the price breaks through the orderblock area but quickly reverses back into the range, leading to a losing of trade.
  • Requires technical analysis skills: Identifying and trading orderblocks requires technical analysis skills that may take some time to develop.

Conclusion

In conclusion, the auto orderblock with break of structure strategy is a powerful tool that traders can use to identify and trade potential breakouts in the forex market. By using an automated tool to identify and monitor orderblocks, traders can make objective trading decisions based on strong areas of support or resistance. This can potentially lead to higher return and flexible risk management. However, traders should be aware of the potential drawbacks, such as false breakouts and limited trading opportunities.

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