The above EURUSD M30 shows the Order Block Breaker indicator for MT4 in action. The indicator draws the Bullish order blocks in NAVY BLUE and Bearish order blocks on MAROON. Furthermore, the indicator alerts by message, sound, and push notifications. These can be input according to the user requirements in the indicator settings.
If the price enters the Bullish order block it indicates the possible price reversal. So, technical traders should look for a BUY entry point based on the price action within the Bullish order block. As the Bullish order block represents strong support all technical indicators and technical trading strategies to validate support apply to the Bullish order block trading. The best stop loss is below the order block or the previous swing low. However, take-profit positions are based on the risk-reward ratio or at the next available resistance.
Similarly, if the price enters a Bearish order block forex traders should place a SELL position and the market is expected to reverse. The best entry within the Bearish zone is based on the price action. A stop-loss above the order block or the previous swing high provides the best results. However, traders should look to book profits with a good risk-reward ratio.
The order block is often a zone and not a single line or a point. So, forex traders should look into the order block and react appropriately within the zone. The break of the order block indicates a potential reversal point of the trend in the counter-trend direction. However, the order blocks that continue in the direction of the previous trend are often more rewarding and have a good risk to reward ratio.
