Best Strategy To Trade an Order Block In Trading

How to Spot Order Blocks on the Chart

Take the 5-minute Nifty chart example:

• Market opens, pulls back, makes a new high = BoS
• A bearish red candle sweeps previous lows = Valid OB
• A strong bullish move follows, leaving an imbalance = Perfect setup
• Price returns to the OB = Entry point

Valid vs. Invalid Order Blocks

Invalid OBs

• No liquidity sweep
• No imbalance
• Already mitigated
• No BoS

Valid OBs

• Liquidity swept
• Clear imbalance
• Unmitigated
• Confirmed BoS

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