Identifying Market Trends with Meep

How have I been able to identify key market areas? It's actually not as complicated as most think. Here’s a basic lesson on order blocks in the market and how to enter trades off of them.

The Basics:

So what exactly is an order block? Since banks and whales are always looking for the best possible entry, they take advantage of the areas they are able to accumulate their orders and liquidity. These areas of accumulation at the top or bottom of a move are known as order blocks. Like fair value gaps, order blocks need to fulfill a sweep of liquidity and a break of structure into the opposite direction in order to be valid. Once the previous conditions have been fulfilled, the order block is formed within the body OR wicks of the preceding candle to the substantial move in the opposite direction.

Here is an example of a bearish order block:

Untitled

Here is an example of a bullish order block:

Untitled

In Use:

Order blocks can occur on all time frames. Take some of my day trades for example:

Here’s a breakdown of a [Feb. 10 2023] $SPX order block trade.

It had daily bearish bias so I was expecting a sweep of buy side liquidity into retrace downwards. This meant that I was looking for an entry of shorts, which is shown below.

Untitled

The Breakdown: