This post is educational and observational in nature based on historical price action. It is not a forecast or a trading recommendation.
The Bullish Order Block
This is where the story gets interesting. The market fell in three consecutive red candles. The first, then the second, and then the third, which looked like the strongest continuation of selling pressure. But instead of extending the fall, that third candle reversed sharply, closing as a bullish candle that engulfed the range of all three prior red candles combined.
That sudden shift, from what looked like accelerating weakness to a powerful reversal, is what defines a bullish order block. The bottom of that entire sequence marks a major shift in market intent. It tells you that the last wave of aggressive selling was actually being absorbed by buyers the whole time. Whenever price returns to this zone in the future, it is likely to find support, since this is the origin point of the move that followed.
Hidden Parallel Channels
This is a concept I have developed through years of chart reading, and it has become something of a personal signature in how I read breakouts. Hidden channels are small, easily overlooked parallel structures that form directly around a breakout candle or breakout zone. They do not announce themselves, and most traders never notice them sitting there.
When a hidden channel exists around a breakout area, it significantly reduces the reliability of that breakout. Price may appear to break free, pull in buyers, and then get pulled right back inside the channel, turning what looked like a clean breakout into a fakeout.
The Bigger Framework
This is the core principle I follow. Never take a breakout at an all time high. Never take a horizontal breakout in isolation. Always look for a base breakout, meaning a breakout that originates from a demand zone or order block, since that is where genuine accumulation has occurred. And even then, always check for hidden parallel channels around that breakout area, because their presence alone can be enough to turn a high probability base breakout into a low probability fakeout.
The Bullish Order Block
This is where the story gets interesting. The market fell in three consecutive red candles. The first, then the second, and then the third, which looked like the strongest continuation of selling pressure. But instead of extending the fall, that third candle reversed sharply, closing as a bullish candle that engulfed the range of all three prior red candles combined.
That sudden shift, from what looked like accelerating weakness to a powerful reversal, is what defines a bullish order block. The bottom of that entire sequence marks a major shift in market intent. It tells you that the last wave of aggressive selling was actually being absorbed by buyers the whole time. Whenever price returns to this zone in the future, it is likely to find support, since this is the origin point of the move that followed.
Hidden Parallel Channels
This is a concept I have developed through years of chart reading, and it has become something of a personal signature in how I read breakouts. Hidden channels are small, easily overlooked parallel structures that form directly around a breakout candle or breakout zone. They do not announce themselves, and most traders never notice them sitting there.
When a hidden channel exists around a breakout area, it significantly reduces the reliability of that breakout. Price may appear to break free, pull in buyers, and then get pulled right back inside the channel, turning what looked like a clean breakout into a fakeout.
The Bigger Framework
This is the core principle I follow. Never take a breakout at an all time high. Never take a horizontal breakout in isolation. Always look for a base breakout, meaning a breakout that originates from a demand zone or order block, since that is where genuine accumulation has occurred. And even then, always check for hidden parallel channels around that breakout area, because their presence alone can be enough to turn a high probability base breakout into a low probability fakeout.
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🏆 MY TELEGRAM : t.me/hashtaghammer
🏆 MY BOOK ( TRADING IS AN EMOTION ) : tinyurl.com/TradingISanEMOTION
🏆 MY TELEGRAM : t.me/hashtaghammer
🏆 MY BOOK ( TRADING IS AN EMOTION ) : tinyurl.com/TradingISanEMOTION
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🏆 WHATSAPP ME : wa.me/919455664601
🏆 MY TELEGRAM : t.me/hashtaghammer
🏆 MY BOOK ( TRADING IS AN EMOTION ) : tinyurl.com/TradingISanEMOTION
🏆 MY TELEGRAM : t.me/hashtaghammer
🏆 MY BOOK ( TRADING IS AN EMOTION ) : tinyurl.com/TradingISanEMOTION
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.