Technicals - Displacement + OB
Now take this concise lesson with much weight, we need to understand why it is so important
————-- 002 - Displacement + OB's
So lets focus a little bit more on the combination now, why is it so important to combine a displacement with an orderblock?
Understand that near these combinations we don't need to second guess which came first... accumulations or distribution... are market making capable institutions entering or leaving the market?
With these two combined we know that both of these take place, and that most likely will end with an injection of volume in our directional bias, our draw of liquidity.
When we have clear liquidity runs, and price reverses into the opposite direction leaving behind a gap, those are our high probability orderblocks.
Here the examples
Bearish example :
Bullish Example:
Full text-book example with exit included:
————-- 002 - Displacement + OB's
So lets focus a little bit more on the combination now, why is it so important to combine a displacement with an orderblock?
Understand that near these combinations we don't need to second guess which came first... accumulations or distribution... are market making capable institutions entering or leaving the market?
With these two combined we know that both of these take place, and that most likely will end with an injection of volume in our directional bias, our draw of liquidity.
When we have clear liquidity runs, and price reverses into the opposite direction leaving behind a gap, those are our high probability orderblocks.
Here the examples
Bearish example :
Bullish Example:
Full text-book example with exit included:
————-- 002 - Displacement + OB's
So lets focus a little bit more on the combination now, why is it so important to combine a displacement with an orderblock?
Understand that near these combinations we don't need to second guess which came first... accumulations or distribution... are market making capable institutions entering or leaving the market?
With these two combined we know that both of these take place, and that most likely will end with an injection of volume in our directional bias, our draw of liquidity.
When we have clear liquidity runs, and price reverses into the opposite direction leaving behind a gap, those are our high probability orderblocks.
Here the examples
Bearish example :
Bullish Example:
Full text-book example with exit included:
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