BULLISH ORDER BLOCK INDICATOR

New indicators will continue to be developed as long as forex trading is concerned due to the demand from traders, particularly newbies.

All indicators were developed with a thorough understanding of how the currency market operates, and that much is certain.

Before using a bullish order block indicator, it’s crucial to have a firm understanding of forex technical analysis, which calls for spotting order blocks on naked charts.

Once you do, you’ll be in a better position to make the most of the order block indicator you use. This article’s main objective is to demonstrate how to recognize order blocks without the use of any indicators.

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HOW CAN YOU TELL A BULLISH BLOCK ORDER

You can tell a bullish order block by identifying multiple areas of support and resistance over a long period of time on a higher timeframe.

On a bullish trending market, the price breaks and closes above the strong support and resistance zone. On a breakout and sometimes retest, traders place a buy order to profit from the bullish trend.

See Image Example

support and resistance forming order bullish block
how can you tell a bullish order block

An order block can be seen on a bullish trending market or a reversal market.

BULLISH ORDER BLOCK INDICATOR

bullish order block indicator

Bullish order block indicators are non-default tools used on MT4, MT5, and trading view platforms that help traders easily identify order blocks on the chart.

HOW DO YOU USE ORDER BLOCK INDICATOR

One common mistake inexperienced forex traders make when using the order block indicator is quickly placing trades where the order block indicator appears.

When it comes to using the order block indicators, it is best used along with other timeframes for market entry.

When the order block indicator appears on a higher timeframe, this is where you apply market structure and multiple timeframe analysis.

In a lower timeframe, you will find a breakout of support and resistance that will support the order block indicator on the higher timeframe.

HOW DO YOU SPOT AN ORDER BLOCK

Many traders have heard about order blocks, but not many cannot easily identify them. I have had many conversations with traders and one question that always comes up is ‘how do you spot an order block’.

Sit back, relax, and read through to know the easier way to spot an order block.

Spotting order blocks should be easy. Here is a list of markers to look out for to easily spot order blocks

HIGHER TIMEFRAME: Because order blocks are created by banks and big financial institutions, it is safer to look at higher timeframes to spot order blocks.

MULTIPLE SUPPORT AND RESISTANCE OVER A LONG PERIOD: multiple support and resistance are a good place to find order blocks on higher timeframes.

See the image below.

multiple support and resistance

WHAT IS THE BEST ORDER FLOW INDICATOR

The truth about the forex market is that no indicator is perfect as there are many order flow indicators on the internet.

One thing is certain before you buy an order flow indicator; you should have a good understanding of order block and order flow.

DO ORDER BLOCKS WORK

Yes, order blocks work; order blocks are high-probability zones in the forex market.

It is critical for forex traders to pay attention to these zones since these order blocks are produced by the operations of banks and large financial institutions; they have a significant impact on the forex market and can define the market’s direction for a long time.

BEST TIME FRAME TO TRADE ORDER BLOCKS

Before we can conclude on the best time frame to trade order blocks, two questions we have to deal with are how order blocks are formed and who creates them.

Order blocks are formed as a result of the trading activities of banks and big financial institutions.

From the above statement, you can see that banks and big financial institutions focus on higher time frames when trading the forex market as these banks trade long-term.

This also means that as a retail trader who wants to trade order blocks; the best time frames to trade order blocks are higher timeframes, from my experience from 30M upward.

CONCLUSION

As long as trading forex is concerned, there will always be improvements in which indicators are made. In all of this as a forex trader, it will do you much good to learn to identify order blocks without the use of any third-party indicators.

WHAT IS A BULLISH ORDER BLOCK

Order blocks play a crucial role in determining the market dominant trend; they are formed as a result of the activities of banks and big financial institutions.

One question forex traders ask is, what is a bullish order block? Today with the availability of advanced market tools and a good trading experience, retail traders can take advantage of trading opportunities in both bullish and bearish order blocks when they are formed.

It is important that to effectively trade order blocks you must first learn how to identify them.

RELATED: BULLISH ORDER BLOCK INDICATOR

HOW CAN YOU TELL A BULLISH ORDER BLOCK

A Bullish order block can be seen both on a bullish trend continuation or a market reversal.

To tell a bullish order block; these are the pointers to look out for.

  1. Market consolidations
  2. Multiple price rejections

See the image below.

how can you tell a bullish order block

WHAT IS A BULLISH ORDER BLOCK?

what is a bullish order block

A bullish order block is simply an aggregation of buy orders from major financial institutions that causes price consolidations and higher highs, signaling an upward trend.

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HOW DO ORDER BLOCKS WORK?

In forex, banks utilize order blocks to break up large orders into smaller ones so they can be filled at better prices without upsetting the balance of the market.

Retail traders can take advantage of these order blocks; looking out for trading opportunities at the break out of the order block structure.

Order blocks work best on higher timeframes when they are formed; they determine the dominant trend of the market.

A narrow-range consolidation results from the banks’ placement of positions around comparable prices; each position establishes a peak (or low, if they’re shorting), of the consolidation.

WHAT ARE THE TYPES OF ORDER BLOCKS?

There are basically two types of order blocks

 Bullish order block and Bearish order block

BULLISH ORDER BLOCK

When an up-trending impulsive wave develops after breaching a range-bound market structure or block, a bullish order block has formed.

BEARISH ORDER BLOCK

A bearish order block is formed when price breaks the range and consolidation of a bearish trend; it is best seen on higher timeframes.

See the image below.

bearish order block

WHAT IS ORDER BLOCK IN FOREX

Order block is a market activity characterized by the accumulation of orders by large firms. Order blocks take time to form in forex market; they are stronger on higher timeframes.

Order blocks can also be seen as supply and demand zones; Utilizing order blocks, you can trade the breakout setups.

When a strong trend comes to an end, order blocks—which can be either bullish or bearish—can be identified by identifying the low or high as well as the swing high or swing low, respectively.

ORDER BLOCK TRADING STRATEGY

Order block trading strategy can be very effective when used properly.

In an order block trading strategy our focus timeframe will be on the higher timeframe as this is where you will find valid consolidations and accumulation of institutional orders.

For market entry on order block trading strategy; we place a trade on the breakout of the order block structure.

See the image below.

order block trading strategy

INSTITUTIONAL ORDER BLOCK

Finding order blocks on the chart is absolutely essential before understanding how to employ them in your trading plan.

After a market consolidation, order blocks are typically seen in larger time frames because they are the outcome of big institutions’ and banks’ movements. For this reason, order block candles often have a larger diameter than the consolidation zone.

Institutional traders never trade in little amounts, in contrast to retail traders. They must therefore carefully consider how to arrange their course of action.

To get the best trading results, they would spend a lot of money merely studying the market. They must overcome a different challenge than typical traders in order to execute such a large order.

Additionally, keep in mind that there needs to be an equivalent sell order on the other side of every buy order.

Due to the size of their orders, institutional traders may encounter challenges while looking for a counterparty to fill their order requests.

Banks and other financial organizations typically divide their orders into smaller trades and carry them out in stages.

BEARISH ORDER BLOCK

Bearish order block shoes market consolidations and accumulation on a down trend; at the break of the order block is a sell signal.

Conclusion

Order blocks are crucial in forex trading since banks and big institutions are participating, and all a retail trader needs to do to participate is to jump in when the order block structure is broken.

WHAT ARE SYNTHETIC INDICES

Synthetic trading is gaining more ground in the financial market; as forex traders are looking for an alternative to currency trading.

In this article, I am going to give a quick summary of what are Synthetic indices, and the brokers that offer them, and am going to provide links to my previous work where you can read up to understand more on the subject.

SYNTHETIC INDICES VS FOREX

It will not be proper to discuss synthetic indices without mentioning Forex trading. I have been asked this question a lot, Are synthetic indices the same as forex?

Let’s see the table below that clearly shows the difference between synthetic indices vs forex;

Synthetic IndicesForex
Constant VolatilityBest volatility at trading sessions
Not affected by global eventsAffected by global events
Can be traded 24/7 weekends and Holidays includedCan be traded Mondays-Fridays
Technical analysis onlyFundamental and technical analysis

WHAT ARE SYNTHETIC INDICES

what are synthetic indices

So, what are synthetic indices? Synthetic indices are one-of-a-kind indexes that imitate real-world market movement with one exception: they are unaffected by real-world occurrences.

These indexes are based on a cryptographically secure random number generator, have constant volatility, and are not subject to market or liquidity issues.

LIST OF SYNTHETIC INDICES

Volatility Indicesvolatility 10(1s) index, volatility 25 (1s) index, volatility 50 (1s) index, volatility 75 (1s) index, volatility 100 (1s) index,  volatility 200 (1s) index, volatility 300 (1s) index, volatility 10 index, volatility 25 index, volatility 50 index, volatility 75 index, volatility 100 index.
Boom/CrashBoom 1000 index, Boom 500 index, Boom 300 index, Crash 1000 index, Crash 500 index, Crash 300 index
Jump indicesJump 10 index, Jump 25 index, Jump 50 index, Jump 75 index, Jump 100 index.
Step indexStep index
Range Break IndicesRange break 100 index, Range break 200 index

The above are the types of synthetic indices that Deriv offers.

SYNTHETIC INDICES ALGORITHM

Synthetic indices are artificial markets whose price movement is determined by computer programs and whose behavior is produced by using randomly generated numbers.

These indices exhibit behavior similar to actual financial markets; they can be traded on MT5 and options.

According to Deriv brokers, an impartial third party continuously audits the algorithm that controls the synthetic indices charts for fairness to maintain.

EXAMPLES OF SYNTHETIC INDICES

These are some examples of synthetic indices

  1. Boom 1000
  2. Crash 300
  3. Step index 
  4. Volatility 75
  5. Jump 75

WHAT IS TRADED IN SYNTHETIC INDICES

In synthetic indices indexes like Boom and Crash, step index Volatility 75 are traded.

WHICH BROKER HAS SYNTHETIC INDICES?

Deriv broker has Synthetic indices.

HOW MANY SYNTHETIC INDICES ARE THERE?

At the time of writing this article, there are twenty-six synthetic indices on Deriv.

DERIV MULTIPLIERS

Deriv multipliers

Deriv multipliers combine the gains from trading with leverage with the low risk of options.

This translates to the fact that your prospective profits will increase when the market moves in your favor.

Your losses are strictly capped at your initial investment if the market swings against your prediction.

WHY TRADE MULTIPLIERS ON DERIV

  1. Better risk management

Utilize cutting-edge features like stop loss, take profit, and deal cancellation to tailor your contracts to your preferences and level of risk tolerance.

  • Increase market exposure

Increase your market exposure while keeping risk to a minimum.

  • Secure responsive platform

Trade safely and easily on Deriv platforms designed for both novice and experienced traders.

HOW MULTIPLIERS CONTRACTS WORK

  1. Define your position

In addition to choosing the market you wish to trade on, you should also specify the transaction type, stake size, and multiplier value.

  • Set optional parameter

Define optional parameters, such as stop loss, take profit, and deal cancellation, to give you additional control over your trading.

  • Purchase your contract

If you are confident with the position you have defined, buy the contract.

WHAT ARE OPTIONS

what are options

Options are financial instruments that enable market prediction payments without requiring the purchase of the underlying asset.

You only need to open a position if you can forecast the asset’s movement over the course of some time.

People can now take part in the financial markets with little to no cash outlay thanks to this.

OPTION AVAILABLE ON DERIV

On Deriv, you can trade the following options:

Digital options let you choose between two probable outcomes and make a prediction; if it is correct, you will receive a fixed payoff.

Lookbacks that let you get paid based on whether the market reached its best high or lowest low during the course of a contract.

Depending on where the exit spot is in relation to the two defined barriers, call/put spreads allow you to profit up to the stipulated payout.

WHY TRADE OPTIONS ON DERIV

  • Fixed predictable payout

Before you even buy a contract, be aware of your prospective profit or loss.

  • All favorite markets and more

Trade on all well-known markets and our 24/7 accessible, customized synthetic indices.

  • Instant Access

Create an account and begin trading right away.

  • User-friendly platforms with powerful chart widgets

Trade on systems with robust chart technologies that are secure, simple to use, and intuitive.

  • Flexible trade types with minimal capital requirements

You can start trading with as little as a $5 deposit and tailor your transactions to fit your strategy.

DERIV-BOOM AND CRASH BEST STRATEGIES

There is no doubt that among Deriv synthetic indices, Boom and Crash are unique due to their price spikes (Boom) and drops (crash) that occur in a series of 1000, 500, or 300.

They are completely different in design from Deriv volatility indices and, as a result, should be traded differently. There have never been indices like Boom and Crash before, which is why there is so much interest in Boom and Crash trading.

There is also a sizable community of synthetic traders looking for the best Deriv-Boom and crash best strategies.

You will know the best Boom and crash strategy that works by the end of this article.

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DERIV-BOOM AND CRASH BEST STRATEGIES

deriv-boom and crash best strategies

To have a Deriv-Boom and crash best strategy you need to:

  • Follow the dominant trend
  • Trade on support and resistance zones

FOCUS ON MARKET STRUCTURE AND PATTERNS

Since Boom and crash are not influenced by market hours and global events, market structure and patterns are the first steps to successful Boom and crash trading.

After identifying a market structure, wait for a breakout in structure.

See the image below:

market structure and patterns

FOLLOW THE DOMINANT TREND

Follow the trend, the trend is your friend; we hear it all the time. This rule is often ignored by traders. Following the trend is synonymous with following the order flow.

To follow the trend, you must examine the market from a higher timeframe (H1 and above)

Following the trend would allow you to distinguish between the market’s dominant trend and a minor pullback.

See the image below:

Follow the dominant trend

TRADE ON SUPPORT AND RESISTANCE ZONES

Support and resistance zones are important indicators to look for when trading financial instruments, especially at higher timeframes.

In terms of best strategies for Deriv-boom and crash, Boom spikes and crash drops easily break through support and resistance in lower time frames, which is why they work best in higher time frames.

You place your entry at the break of support and resistance, as well as a retest of the broken zone. All of this will be applied in the direction of the dominant trend until the market reverses.

See the image below:

support and resistance zones

BOOM AND CRASH SPIKE STRATEGY

Is there a boom and bust spike strategy that ensures consistent profit? In the financial trading world, there is a saying known as the Holy Grail, which means that there are no perfect trading strategies.

One thing is certain in trading: the market will always react to price action and market structure, especially for the Boom and Crash spike strategy.

That being said, rather than looking for a Boom and Crash strategy, focus on understanding the fundamentals of technical analysis trading, as Boom and Crash are unaffected by global news.

This would allow you to determine the best time to place a trade for a Boom and crash.

At the top of this article, you will find image examples of Boom and Crash spike strategy.

BEST STRATEGY FOR BOOM AND CRASH

When it comes to trading boom and crash, it is important to trade from a higher timeframe paying attention to support and resistance zone for possible market entry.

Having a good strategy for boom and crash is beyond using a bunch of indicators because they lag. There are certain rules that govern financial trading and boom and crash respect those rules. These rules require MT5 free default tools.

So here are the tools and rules you need if you want the best strategy for boom and crash.

  1. Market structure knowledge
  2. Learn how to use The Fibonacci tool.
  3. Top down analysis handling multiple timeframes.

Note that in market structure you will find support and resistance, chart pattern, and more.

BOOM AND CRASH 1 MINUTE STRATEGY

If you want to see consistent returns on Boom and crash then you have to focus on trading on higher timeframes.

Like I said before, support and resistance are easily broken on lower timeframes so I will not recommend you trade Boom and crash on 1 minute.

IS BOOM AND CRASH MANIPULATED?

Many synthetic traders believe that boom and crash is manipulated; however, it is difficult to say that boom and crash is manipulated because there are many participants involved, both winning and losing traders.

In my years of trading Boom and Crash indices, I’ve discovered that the index responds very well to price action technical analysis on higher timeframes.

That being said, if you pay attention to price action trading, you will also be on the winning side.

BEST INDICATOR FOR BOOM AND CRASH

If there was a best indicator for boom and crash then every synthetic Boom and Crash would be making money.

There is no Holy Grail in trading. The best boom and crash trading system is price action.

WHAT MOVES BOOM AND CRASH INDEX

Boom and Crash is highly influenced by pure price action, if you want to trade Boom and Crash successfully naked trading is the way. I don’t recommend indicators for Boom and Crash trading because they lag.

With price action, you get to see the price real-time and catch early market entry and tighter stop loss.

WHICH INDICATOR IS BEST FOR BOOM AND CRASH?

The best indicator for Boom and Crash is no Indicator. Naked trading is the way to trade Boom and crash.

A naked Boom and Crash chart will enable you easily spot the market dominant trend and all the support and resistance zones.

With a naked chart, you can see the swing highs and lows and apply your trend line properly to touch the swing levels.

HOW DO YOU PREDICT SPIKES IN BOOM AND CRASH?

A reliable method exists for predicting Boom and Crash spikes.

  1. Look for spikes in zones of multiple price rejection on Higher timeframe (H1)
  2. Price breakout of chart pattern.
  3. spikes can be detected with trend lines on swing lows and highs

HOW DO YOU TRADE BOOM AND CRASH WITHOUT FEAR?

To trade Boom and crash without fear you need to:

  1. Use lot sizes that matches your trading capital (risk management)
  2. Do your market analysis on higher timeframes
  3. Enter trades on breakout and exit on support and resistance (on the trend)
  4. Sell on swing highs and buy on swing lows
  5. Follow the Dominant trend.

WHAT IS THE HARDEST MISTAKE TO AVOID WHILE TRADING?

There are many mistakes traders make while trading, I will list a few:

  1. Most traders mistake a pullback for the dominant trend
  2. False breakout from actual breakout
  3. Focusing on too many pairs
  4. Buying at a swing high and selling at a swing low

WHAT IS THE BEST TIME TO TRADE BOOM AND CRASH IN SOUTH AFRICA?

Because Boom and Crash are standalone indices and are not affected by market trading hours; therefore Boom and crash do not have a best time for trading rather the best time to trade Boom and crash is the break of market structure, especially on a higher timeframe.

To understand more about the best time to trade boom and crash in South Africa go read my previous articles regarding Boom and crash trading.

CONCLUSION

As a synthetic trader who wants to be successful in trading Boom and crash; the best first step to take is to learn that Boom and Crash is influenced by price action and market structure.

Indicators such as moving average are not the best bet for trading Boom and Crash because they lag.