Order Blocks

Order BlocksLesson 6 of 94 min read

One per trend

A block forms only where one trend becomes the next, which means a chart holds far fewer of them than a beginner draws.

There is a rule that stops this tool turning into boxes all over the chart.

A block only forms at a turn

Read the definition again. The block is the leg that caused the sweep, sitting just before the break of structure.

All three of those events belong to one moment: the moment the trend changed. No turn, no block.

A block is produced by a trend ending, so it exists only where one ended.

Nothing forms inside the trend that follows

After the turn, gold falls. It makes lower highs and lower lows, with pullbacks between them.

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