Arrays - Core Orderblocks

————-- 001 - Theory

There is a lot of misconception about orderblocks, so lets debunk them right away.

The whole concept of orderblocks is to spot the footprints left behind by the market making capable institutions. These footprints are traces of potential accumulations and distributions. So either an injection or withdrawal of volume in the market.

In very simple terms, how we identify orderblocks in the EXODUS manner is as followed:

- Down candle in bullish run - Bearish OB

- Up candle in bearish run - Bullish OB

We are then introduced to the concept of the Mean Threshold (MT). Ideal scenario is that the orderblock will not see price going above/below that MT point of the ENTIRE body of the candle.

We fixate on the body of candlesticks, as we mentioned in the liquidity module, majority of liquidity discplacements occur in the wicks ;)

There is no rule of marking orderblocks, but for me I like to keep it simple:

- Bullish OB -> | + |

- Bearish OB -> | - |

We focus on the body of the candle, because that is where the bulk of the volume is located.

-> https://www.tradingview.com/x/0yBRXpqv/ <-

All the orderblocks are noted with the arrows, you see how how each bullish orderblock is based off a down candle before a bullish run, and vice versa every bearish orderblock is a up candle before a bearish candle/run

Now this is just the start, this is not some sort of holy grail. Now our goal is to build an edge around this.

Also see how the MT holds price very well during reactions, even the old bearish OB giving MT reaction to the far right on that wick.

————-- 002 - Drawing the MT

When it comes to drawing the MT of either a bullish/bearish orderblocks its actually quite simple. So lets not overcomplicate it too much.

Remember, we do everything of body to body when it comes to orderblocks. Biggest chunk of the volume.

Identifying the orderblock in question, down candle before uptrend

Placing the top of the body as the main line on the bullish orderblock

Fib from body top to body bottom, not wick to wick

0.5 of that fib becomes the MT of your OB... and voila, look at that reaction.

————-- 003 - Ideal Traits

When it comes to orderblocks in EXODUS we have preferences which would make it a bit more of a high probable orderblock:

1. More of a beefy candle, less wick more body, more volume (preferably)

2. Aggresive opposing candle that occurs after the orderblock

3. coupled with a displacement/fvg after the move from the ordeblock

Here you can see a clear example of an ideal bearish OB, price leaves behind a small displacement, after an already good impulsive reaction to the downside, comes back and fills it up to continue the run towards SSL.

————-- 003 - Ideal Traits