This is 0xthechartist's strategy. The AI read and understood 0xthechartist's strategy and marked it up automatically on the chart.
Strategy
What is an Order Block in SMC?
An Order Block is the last sell candle before a price increase within an uptrend (candle color doesn't matter); we can accept the risk of placing a buy order by identifying an OB that marks bullish momentum — if price later returns to touch that OB (called "mitigation/exploitation"), a Buy can be placed there.
Similarly for a downtrend: once price breaks structure (BOS/CHoCH), we must identify the OB as the last buy candle before the decline. To enter, we wait for price to return and tap that OB, then enter per plan.
Identifying the OB correctly is crucial and interesting — many OBs appear during a price move, and we must determine which OB is valid and which is not.
How to identify an Order Block
Per the Trading Hub 3.0 material, to mark any Bullish/Bearish Order Block, there must be an Imbalance AND the candle must sweep the high/low of the prior candle (liquidity sweep) to confirm the Order Block.
Note: Order Blocks come from Order Flow, so if the OF has already been mitigated, the market doesn't need to tap the OB again. If the entire OF has been mitigated, we focus on finding an OB that hasn't been mitigated yet.
Bullish Order Block
In an uptrend, the last candle that sweeps through the low of the prior candle before price rises and creates an Imbalance is called the Order Block.
OB and IMB together give higher win-rate.
When price returns to mitigate the OB, we can enter a Buy on the LTF.
If price sweeps liquidity but no IMB forms, we look for the OB on subsequent candles — the first candle that creates an IMB is called the OB.
Bearish Order Block
In a downtrend, the candle that sweeps through the high of the prior candle and creates an Imbalance is called the Order Block.
When price returns to mitigate the OB, we can enter a Sell on the LTF.
An Order Block that forms at a top or bottom is called an Extreme Order Block.
If an OB has already been mitigated, we call it an invalid OB and no longer use it.
Price often reacts from OBs in decision-price areas or Extreme OBs. Extreme OBs give higher probability than regular OBs.
If there's no valid IMB for an OB, we can use the candle wick as the OB, as long as that wick hasn't been mitigated yet.
OBs located within the Order Flow give higher probability than OBs outside the OF.
Note: In the Trading Hub 2.0 material, the OB definition didn't require sweeping the prior candle's liquidity, only forming an IMB — this affects trade setups.
Note: Trade in the direction of the trend.
Analysis
Applying the member's SMC/Order Block workflow on BTCUSDT H1:
1) Structure/BOS: From the low at 22:00 on 19/07 (64347.89), price rallied to a high of 65068 at 11:00 on 20/07, then reversed sharply through the 12:00-14:00 candles, breaking below the nearest structural low near 64350 (low of the 21:00 candle on 19/07) and printing a new low of 64077.76 at 14:00. This is a bearish BOS, confirming the short-term structure has flipped down.
2) Prior bullish OB invalidated: the strong up candle at 22:00 on 19/07 (O64415.75 → C64674.67, low 64347.89) drove price to 65068, but since its low (64347.89) was swept by the 14:00 candle, this OB is now mitigated/invalid — per the rule "if the Order Flow is already mitigated, the market doesn't need to tap the OB again," we discard it and look for a fresh unmitigated OB.
3) New Bearish OB: per the strategy, a bearish OB is the last up-close candle before the decline, which sweeps the prior candle's high and creates an Imbalance. The 11:00 candle (O64301.18, H65068, L64273.33, C65002.01) is that last up candle, sweeping the 10:00 candle's high (64415.42) before reversing. The following 12:00-13:00 sell-off then created a clear imbalance (12:00 candle's low 64599.89 sits above the 14:00 candle's high 64575.37) — confirming OB + IMB together, which the strategy notes gives higher win probability than an OB without imbalance.
4) OB status: current close (64416) sits BELOW the OB zone (64301-65002) and hasn't returned to tap it yet, meaning this is an untapped/unmitigated OB — per the strategy, a valid zone to wait for a SELL entry.
5) Entry plan: wait for price to retrace into the OB's proximal edge around 64550 and look for a lower-timeframe SELL confirmation there. SL is placed above the OB high (65068) plus a small buffer at 65120. TP targets a prior liquidity/support zone near 63450 (around the 17/07 low). RR ≈ 1.93.
Note: the OB zone is fairly wide due to the strong 3-candle displacement, so it's not as high-probability as an Extreme OB at the dataset's absolute high/low — confidence is set to medium, and further LTF confirmation is recommended once price actually returns into the entry zone.
Not financial advice.
Strategy
What is an Order Block in SMC?
An Order Block is the last sell candle before a price increase within an uptrend (candle color doesn't matter); we can accept the risk of placing a buy order by identifying an OB that marks bullish momentum — if price later returns to touch that OB (called "mitigation/exploitation"), a Buy can be placed there.
Similarly for a downtrend: once price breaks structure (BOS/CHoCH), we must identify the OB as the last buy candle before the decline. To enter, we wait for price to return and tap that OB, then enter per plan.
Identifying the OB correctly is crucial and interesting — many OBs appear during a price move, and we must determine which OB is valid and which is not.
How to identify an Order Block
Per the Trading Hub 3.0 material, to mark any Bullish/Bearish Order Block, there must be an Imbalance AND the candle must sweep the high/low of the prior candle (liquidity sweep) to confirm the Order Block.
Note: Order Blocks come from Order Flow, so if the OF has already been mitigated, the market doesn't need to tap the OB again. If the entire OF has been mitigated, we focus on finding an OB that hasn't been mitigated yet.
Bullish Order Block
In an uptrend, the last candle that sweeps through the low of the prior candle before price rises and creates an Imbalance is called the Order Block.
OB and IMB together give higher win-rate.
When price returns to mitigate the OB, we can enter a Buy on the LTF.
If price sweeps liquidity but no IMB forms, we look for the OB on subsequent candles — the first candle that creates an IMB is called the OB.
Bearish Order Block
In a downtrend, the candle that sweeps through the high of the prior candle and creates an Imbalance is called the Order Block.
When price returns to mitigate the OB, we can enter a Sell on the LTF.
An Order Block that forms at a top or bottom is called an Extreme Order Block.
If an OB has already been mitigated, we call it an invalid OB and no longer use it.
Price often reacts from OBs in decision-price areas or Extreme OBs. Extreme OBs give higher probability than regular OBs.
If there's no valid IMB for an OB, we can use the candle wick as the OB, as long as that wick hasn't been mitigated yet.
OBs located within the Order Flow give higher probability than OBs outside the OF.
Note: In the Trading Hub 2.0 material, the OB definition didn't require sweeping the prior candle's liquidity, only forming an IMB — this affects trade setups.
Note: Trade in the direction of the trend.
Analysis
Applying the member's SMC/Order Block workflow on BTCUSDT H1:
1) Structure/BOS: From the low at 22:00 on 19/07 (64347.89), price rallied to a high of 65068 at 11:00 on 20/07, then reversed sharply through the 12:00-14:00 candles, breaking below the nearest structural low near 64350 (low of the 21:00 candle on 19/07) and printing a new low of 64077.76 at 14:00. This is a bearish BOS, confirming the short-term structure has flipped down.
2) Prior bullish OB invalidated: the strong up candle at 22:00 on 19/07 (O64415.75 → C64674.67, low 64347.89) drove price to 65068, but since its low (64347.89) was swept by the 14:00 candle, this OB is now mitigated/invalid — per the rule "if the Order Flow is already mitigated, the market doesn't need to tap the OB again," we discard it and look for a fresh unmitigated OB.
3) New Bearish OB: per the strategy, a bearish OB is the last up-close candle before the decline, which sweeps the prior candle's high and creates an Imbalance. The 11:00 candle (O64301.18, H65068, L64273.33, C65002.01) is that last up candle, sweeping the 10:00 candle's high (64415.42) before reversing. The following 12:00-13:00 sell-off then created a clear imbalance (12:00 candle's low 64599.89 sits above the 14:00 candle's high 64575.37) — confirming OB + IMB together, which the strategy notes gives higher win probability than an OB without imbalance.
4) OB status: current close (64416) sits BELOW the OB zone (64301-65002) and hasn't returned to tap it yet, meaning this is an untapped/unmitigated OB — per the strategy, a valid zone to wait for a SELL entry.
5) Entry plan: wait for price to retrace into the OB's proximal edge around 64550 and look for a lower-timeframe SELL confirmation there. SL is placed above the OB high (65068) plus a small buffer at 65120. TP targets a prior liquidity/support zone near 63450 (around the 17/07 low). RR ≈ 1.93.
Note: the OB zone is fairly wide due to the strong 3-candle displacement, so it's not as high-probability as an Extreme OB at the dataset's absolute high/low — confidence is set to medium, and further LTF confirmation is recommended once price actually returns into the entry zone.
Not financial advice.
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Our Custom Programming Service: Focusing on Pine Script to develop indicators/Bots on TradingView/MT5 that support traders in the Forex, Stock, and Crypto markets
facebook.com/groups/1128766605090440/
facebook.com/groups/1128766605090440/
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。