I tried every single trading strategy you can think of be support and resistance levels or Voodoo Candlestick pattern or even stupid indicators and I found that none of them works and there's only one thing that actually works for me and it works really really well and made me a lot of money and that one thing is called order blocks this is really the secret Source that's allowed me to follow the smart money Footprints don't worry I'm not going to charge you $997 I'm going to give it to you for completely free so firstly what are
aut blocks aut blocks are basically areas on price chart where large Market participants like Banks and financial institutions place a substantial amount of buy or sell orders that is why they are called order blocks it's literally in the name guys now aut blocks and supply and demand zones they are very similar with just a few differences the first difference is that aut blocks are much more effective than supply and demand zones because after all the point of aut blocks is to really show us where smart money has entered into the market and where they are
most likely going to enter again the second difference is different rules are used when identifying valid order blocks now for a Zone to be considered as an aut block it needs to meet four criteria which I'm going to show you later now the trick to identifying Auto blocks is to look for Sharp and substantial upward movement or downward movement so in this case you can see we got a sharp and substantial upward movement right here where price is going up very aggressively just like this in that case you just want to to look for the
candle right before this sharp and substantial upward movement and then there a mouth so this is the candle right here so in this case you just need to draw a box marking the top the high and the low of this particular candle and this creates your order block and then in a bearish scenario you should be looking for a sharp and substantial downward movement and once again you look for the last candle which created this sharp downward movement this aggressively down move if that's even a word and you just just find the candle right there
and that is where you basically drop the auto block it's it's really not rocket science guys it's just you look for that one little candle before a sharp and substantial movement and it just draw a box marking the high and the low of the that pivot candle and there you have your little beautiful auto block like I mentioned just now in order for a Zone to be considered as an aut block it needs to meet four criterial right it must meet every single one of these four criterial if it does not a single one of
them it is not an aut block it could just be like a normal supply and demand zone so the first rule is that the pivot candle must close below or above the previous candle so after identifying a sharp and substantial outward movement just like this we are able to identify that this is actually the pivot candle where we can actually draw the order block now knowing that this is the pivot candle you need to ensure that this piver candle Clos below the previous candle because this indicates is that institutional buyers are stepping in absorbing sell
orders and preparing to push price higher so looking at these two examples that we have right here this pivot candle did close below the last candle but this pivot candle did not managed to close below the previous candle since this previous candle went all the way down here right so this P candle actually closed up here so it's not really considered as a valid aut Block in this case the second criteria is that the auto block must cause imbalance what that means is that there must be a gap how do you know there's a gap
there you basically look at the high of the pivot candle and then you look at the low of the next next candle in this case right here and you can see this creates like a little Gap that we have right here what this Gap tell us is that at this point of time smart money have entered into the market and it has managed to push price aggressively up so much that it left a gap behind telling us there was a large amount of demand stepping into the market at this point of time and then in
this example right here there was actually no Gap because if you look at the high of this pivot candle and then you look at the low of the next next candle in this case is pretty much at the exact same price right so since there is no Gap right here this aut block cannot be considered as valid therefore making it an invalid auto block the third criteria is that an auto block must be unmitigated it must be fresh that means price cannot actually tap into it if it tap into it then it has already been
mitigated and what this means is that the orders yet to be filled within this auto block itself it has already been filled by the smart money you must understand why an auto block is formed at this point of time this is where smart money have entered for a large amount of buy orders right so knowing this this creates an order block this means that at some point of time price is most likely going to come back into this order block right fill up the buy orders yet to be filled before going up even further now
in this case since it has already been mitigated by this particular cander right here what this tell us is that the orders yet to be filled within this order block has been filled by the smart money right so right now price is most likely going to go up there and it's very less likely going to come down and mitigate it however there is still a chance that price could come down here and mitigate it in the future but just less likly since it has already been mitigated the strongest Auto blocks are always do that is
fresh new and unmitigated the fourth criteria is that it must led to a break of structure so in this case this auto block right here it led to this break of structure making this a valid auto block and then this one right here led to this break of structure making this a value aut block and then this one led to this Market shift once again is also a break of structure but it's just like a reversal in the structure and making this still a valid auto block and then this is also going to be a
valid auto block because it did led to a break of shock structur so those are the four Rules of Order blocks right you must ensure that the point of Interest or the Zone must beet all four of these criterial for it to actually be considered as a real aut block if it does not me a single one of them it is not an aut block it could just be a supply and demand zone or just an ordinary stupid Zone that is not going to work so now let's apply what we have learned and really learn
how to differentiate between valid order blocks and invalid order blocks so this order block right here right we saw there was a sharp and substantial upward movement cool and then we know that this is the pivot candle that led to this movement and did this pivot candle actually closed below the previous Candlestick low yes it did cool is this unmitigated yes it is right and was there some form of Gap yes there is there's a gap between the high of this candle and the low of the next next candle okay cool there is unmitigated it
caus imbalance that is a gap and it Clos below the previous Candlestick low and it led to break of structure that's the last criteria it did right it did led to a break of structure in this case this that this is a valid order block so we can expect price to come down here at some point of time mitigate it before going up even further and then let's look at this next zone right here do we have a sharp and substantial up movement yes we do right but look at this pivot candle this pivot candle
did not close below the previous Candlestick low which is right down here in this case this is an invalid order block and then let's look at this next zone right here in this case sharp and substantial up movement but the thing is there is no Gap all right you can see there is no Gap this is the high of this pivot candle and the low is like all the way down here there's no Gap that is why there is no imbalance whatsoever and this Zone has also been mitigated right which means smart money have already
used this Zone in that case we can just ignore about this zone right here and then the last Zone that we have right here okay sub and substantial hour movement cool is it unmedicated yes it is did it cause imbalance yes there's some form of there's a small little Gap right here the the marker that I'm drawing right here is way too big but yes there's a little bit of Gap right there and then this did close below the last Candlestick low making this and valid order block so then now that you understood Theory let's
go on to the charts and apply what we have learned so far and really ensure that you get a deep understanding of the aut blocks before you actually go and apply onto your real account with your hard earned money now how do you actually trade Auto blocks where do you enter and where do you exit that's what we're going to cover next right I'm going to show you my entire auto block strategy from top to bottom first thing you must understand is that there are two ways to actually enter for a trade using this auto
block strategy the first way is called a re entry method and then the second way is called the confirmation entry method I'm going to show you the pros and cons of each and then based on this you can decide which works best for you and then pick that one right so firstly let's talk about the risk entry method So based on what we have right here let me just identify the aut blocks aut blocks um there's perhaps one like right here you can see there's a lots of more imbalance right here and then there is
a gap it's unmitigated blah blah blah we know that okay cool there is an auto block right there okay and then this is the pivot candle that caused this sharp and substantial downward movement and since price has already came all the way down here yes there is still a chance that price could potentially move up there mitigate it and then go even further but let's look at what we have right here because we have another aut block right so that is another aut block right there because once again that is your sharp and substantial downward
movement okay that is your Gap and then this also led to a break of structure to the downside that we have right here where price where price I don't know why I just said that where price has just broke past the last swing low right so that is your bearish break of sh to the downside okay so now you can see we got these two Auto blocks right here the question you guys are going to ask me is okay cool BR which aut block is price going to go I have no idea all right I
don't have a crystal ball I'm not a fortune tent I have no ideal okay so if you're using the risk entry method that means you are most likely going to be placing a sell order at the edge of the Zone itself that means when price eventually go up there touches the Zone you'll be tapped into a sell position automatically by a broken and then you are praying for the best right you praying that you know price will not he your stop loss and price will just go in your way you're praying that this auto block
will work so that's the risk entry method all right basically placing a sell or buy limit order at the Zone itself and then once price step into the Zone your broker get you into the trade the bad thing about this risk entry method is that you don't have extra confirmation right that means sometimes price can just blow right past your aut Block in that case you have lost this trade right here because you didn't actually wait for confirmation okay but we'll talk about that later for now let's say you actually decided to go for a
RIS entry method and you place your sell order at the edge of this order block right here and you place your stop loss above the order block itself and if I take profit you can place your take profit at the next structure be the next swing low right you always look towards the left so if I look towards the left right here I'll see that based on the structure this is the last swing low that we have right here because this is the last time price actually pull back all the way down here and then
goes all the way up there and break structure right there so this is the last swing low so you can potentially Target that last swing low that we have right there or you can even Target the opposing auto block right the next auto block which could potentially be this area right here this is the next order block right so all in all this look exactly the same so let's say you decide go for a risk entry right there let's see how this play out okay cool right here you got tap into the trade let's just
continue to see what price does okay you can see Supply stand to the market and Bam you hit take profit congratulations now here comes the brokies oh Brad you could have just Cherry Picked this you know like this is is like a perfect Zone you just bar replay anybody can do it in bar replay I agree with you that is why I don't really like to use this risk entry because for every one auto block that actually work there is like five other aut blocks that don't actually work that's just the nature of the irrational
and unpredictable Market before I show you the next method let me just show you more examples on this risk entry method so let's let's look at what happens next okay price just blow right past that and then we are looking for our new order block okay price has stepped into this actually this new little okay this is not really aut block this is more of like a supply Zone because it did not met all four of these criteria right you know there was no Gap is it's also been mitigator whatsoever so this is just an
ordinary Supply zone right but I can see price step into this okay came down here okay cool now we can draw our new order block right here right this is the pivot candle that led to this sharp and substantial downward movement that we have right here okay so this is our new aut block and let's say we put our risk entry right there once again right we are entering for a sell at the edge of this Zone and then let's just see what price does does it actually go up there nope I don't think it
has went all the way up there okay so let's just look for another auto block okay there's another auto block right there okay and then let's place our risk entry right there okay let's just once again this is what you guys do right RIS entry boom you attack into the trade right here nice at this point of time I will Target the previous swing low once again where is the previous swing low okay so this would be the previous swing low you always look towards the left right so this is the previous swing low Target
just right there and then let's just see whether we hit take profit right there okay it came down here okay I believe we are going very near the take profit right bam you hit your take profit right there congratulations you just won two trades out of I don't know 10 so as exciting as this risk entry are sometimes they just don't really work right because sometimes price can just tap into this aut block and just blow right past it and just reverse and hit up and just go against you in that case you have lost
this trade right so if you want to get a higher win rate that is where you need to deploy what I call a confirmation entry so unlike the risk entry where you're entering straight away after price step into your order block on a confirmation entry you are waiting for extra confirmation after price has stepped into the aut block and if you use this method you will get a much higher win rate because you are actually be waiting for confirmation that shows you that confirms to you that the auto block is actually working and it's not
just like a fake useless auto block that price is just going to blow right past it step one is to draw your auto blocks obviously so over here we saw that there was a sharp and substantial downward movement just like this so in this case we can actually draw our auto block at a pavot candle right so for this right here is is a little bit weird right because it's a very large a so I just mark this entire area as my Pivot candle right here from the high to the low of this pivot candle
so now that we got our aut block right here right now we are just waiting for price to come back up here now for confirmation entry we are not going to be entering straight away when price step into the Zone we are going to be waiting for the structure to shift One Price step into the zone right to get the extra confirmation what I mean is that I want to see this little pullback to be over basically right now price has done bullish to facilitate the pullback so what I want to see on the 15-minute
time frame is for this little bullish uptrend this little pullback to be over right so in that case I need to look for some form of Market shift right so let's just continue to to look at Price pulling back all right you can see price pull back and then finally tap into our aut block that we have right here so based on this this was the last breakout structure to the upside right since this is the last break of structure to the upside we know that this one right here is the lowest point that led
to this break of structure making this the last swing low that means if price comes down there and break past this last swing low that tell us that this pullback is over and right now price is turning bearish and it's aligned with the higher time frame Trend and right now price is about to go down even further right to continue the bearish order flow so in this case like I said this is what confirmation entry is all about is waiting for the extra confirmation that tell you that structure has shifted before you actually enter for
sell so at this point of time I'm still waiting because it has not given me a valid Market shift yet right like I said if you are playing the risk entry you would have gotten in right here but in this case we are looking for the confirmation entry so I'm just waiting still waiting until price broke structural by the way this is more for swing Traders okay so yeah right there this is where we officially got that market shift right now right and this tell us that cool right now this pullback is over this bullish
internal structure has officially shifted bearish and the internal structure the lower time frame trend is aligned with the higher time frame Trend which is bearish now everything start to click like clockwork baby all right so this is where we got a market shift right here okay cool now this is where we start looking for our entry now to refine my entry what I like to do is to look for more order blocks that is within the entry time frame which in this case since I'm entering the trade on a 50-minute time frame I want to
look for some form of auto block within the 15minute time frame itself right so based on this I can spot that okay there is a little auto block right there okay there's one on the Block right there and then perhaps there's another one I'll say right here but this one has been mitigated so it'll be this one right here okay this one right here once again sharp and substantial downward movement right here guys let me just draw it up for you guys to see sharp and substantial downward movement sharp and substantial downward movement and you
can see this one right here it also did let to a breakout structureal okay and there was a gap so on and so forth pretty much for f all for criterial so now like I said I don't actually know which zone price is going to respect so I'm just going to uh wait and see right so okay price eventually come up into this zone right here okay there's a chance that at this zone is going to go okay but we still wait for extra confirmation okay you can see price actually ended up going even further
came all the way up here to our extreme order block that we have right here and somewhere along the lines it just blow right past it okay tap into this order block right here so this one we can just completely get rid of now at this point of time this is where you can actually enter for a cell right here at the edge of this Zone and if you do actually enter for a cell right here at this order block if you think about it it's still some form of risk entry because you are still
not waiting for the extra confirmation right so for for you to be really a confirmation entry in this case I will go down to the lower time frame the 5 minute time frame and wait for this little pullback to be over right this bullish pullback once again to be over and then that is when you can potentially get your confirmation entry in right there right there ladies and gents look at this internal structure on a 5 minute time frame this is the last internal higher low this is more for advanced Traders already we got the
market shift to the downside which tell us that right now price has officially shifted bearish and that is where you can enter for your sell position right there okay so you can enter for a sell right here place your stop loss above this order block itself and then like I said you can take profit at the next uh structure or the next auto block that we have right down here okay so yeah this is potentially what a confirmation entry is about it's really waiting for the extra confirmation before you put a trigger right if you
want to even go like more extreme right more advanced instead of entering right here what you could have potentially done is to wait for price to pull back after this Market shift into this area right here right this entire demand zone right there and then you enter at the edge of this demand Zone and in this case you can see this is a one is to six risk throughout ratio trade right it's a very refined entry okay but yeah like I said this is more advanced stuff right and right now if you are a beginner
Tak things slow right Master the risk entry first then go and master the confirmation entry and then find out what works best for you and then based on the data that you have collected go and stick to that particular method whether that is risk entry and Confirmation entry for myself based on my own experience I found that the confirmation entry just works so much better for me because I found that when I use the risk entry sometimes the aut block just blow right past it and I just take a bunch of losses that I would
have taken if I just look or rather wait for the confirmation in the first place now to be honest aut blocks itself is powerful but if you want to make it even more powerful you need to combine it with liquidity Concepts and if you can combine these two concepts it's like having x-ray vision on the market you can actually see where smart money entered for the ENT the market and where they are most likely going to enter and I can kind of predict and you can just do some witchcraft on the market so if you
want to learn more about liquidity Concepts you can watch this video right here and as always remember you're are just one trade away I feel so weird kissing my my my that that little camera bro it's like I'm cheating on the main camera