Transcript of PART 2 | ORDER BLOCK | IMBALANCE | IFC
TRADiNG hub
0:10hi my name is khan and in this next0:13chapter we will talk about imbalance and0:16ifc what is ifc what is imbalance and0:20what is order block so first of all i0:22would like to start with imbalance0:25actually imbalance is also known as fbc0:28inefficient price section there are0:31different different name0:32so let's start in a various structure as0:35you can see here this is a last candle0:37before this draw so0:40this is our last0:42candles0:43low is here0:44extend here okay0:47and the mark the next candle next second0:50candle which is here0:52high is here right0:54so between this low and high this gap is0:58called imbalance1:00fbc inefficient transaction right so1:04this one is a proper imbalance correct1:07and sometimes what happened market did1:11not1:12create this imbalance and fill this1:14imbalance so that is not a called1:17imbalance okay so1:19in this case you can see here this low1:23and this high is here still imbalance1:26correct and maybe this candles1:29extend here okay so this imbalance1:33down is like this okay1:36so this is a minor imbalance but still1:38imbalance okay so this one is also valid1:42imbalance and this one is also valid1:44now let's move little bit lower1:47as you can see here this low and this1:50high is already mitigated okay1:53so there is no imbalance left as you can1:56see here there is no imbalance so this1:59one is also mitigated same thing apply2:01in a polish market as you can see here2:04this high is here and low is here so2:08between this high or low and this one is2:11called imbalance correct2:13and2:14next2:15is high2:16this candles high and the next candles2:19low2:19is here so this one is also called2:22imbalance right2:24and this imbalance can be a different in2:28a size2:28like this2:30here you can see this is a larger2:31imbalance this is a minor imbalance and2:34same thing is here and this is a medium2:36imbalance this is a little bit2:38bigger imbalance and this imbalance can2:41be more2:43bigger or2:44smaller like here i'm showing you2:47exactly2:48maybe2:49imbalance like this2:52right2:53so it's depend on the market strength2:56momentum so2:58as you can see here on the next3:01this high and this candles low which is3:04here so there is no imbalance already3:07mitigated so3:09this is a not imbalance correct3:13so on the extreme point there is no3:15imbalance and same thing is here there3:17is no imbalance and this is the3:19imbalance so this is a simple3:22step to identify the imbalance in a3:25bullish and various market let's switch3:27into the real chart to identify the3:30imbalance this low candles low which is3:33here3:35okay and this candles high which is here3:39so this is a imbalance between this3:43candlestick right3:49okay and same thing is here the next3:52candles low and next candles high3:55between this zone this is also known as3:58a imbalance correct4:01and the third zone is here4:07this4:08is a minor imbalance correct4:10and now you can see in a both in a three4:15zone4:17this one is a here correct4:20and yeah okay so now you can see4:24three zones are looks differently but4:28there is imbalance4:30on the4:31last one is a minor imbalance and this4:33one second one is a medium imbalance and4:36on the extreme this is a higher4:39imbalance right so these are imbalance4:42if you notice here on the next4:45candlestick which is high is here and4:47low is here so this is already mitigated4:49so there is no imbalance right so4:53this is an imbalance and there is a no4:55imbalance between this high or low right4:59so5:01on the next point5:03you can see here this candles high5:05this can be low and this candles high5:07next candle and this is a imbalance and5:11also known as a fvz as i told you5:14and inefficient transaction so there are5:17different different name but5:19everything works similar right5:22so this is a imbalance and5:25there is5:26one more imbalance below it5:29here5:31correct so this one is also imbalanced5:34and5:35if i mark here and this is her which is5:38already mitigated so there is no meaning5:40to mark this zone right so this is a not5:44imbalance correct and same thing is here5:46all everything is mitigated right even5:51you can see here clearly5:54this5:55mitigated here and this is mitigated by5:58this one and this is mitigated by this6:00one there is no imbalance between these6:03two own right and there is still some6:06imbalance here because this candle slow6:09and this candle is high6:11between this so already filled this gap6:14now so this is now not longer6:18too valid imbalance right so this is a6:21imbalance in a various market now6:24let's move into the6:26bullish market and this is a current6:28price action6:30okay6:31so same thing apply in a bullish price6:33action as you can see here6:37if i mark on the6:39bottom to top then you can see here6:42clearly6:45this candle slope and this candles6:49high sorry this candle is high previous6:52and this candle is low and between this6:55zone this is a imbalance correct6:58and6:59same thing7:00you know at the current price section7:07here this is also imbalance7:10this is also imbalance right7:12so this is a simplistic way to identify7:16the imbalance okay it doesn't matter7:18that market momentum is a polish or7:20various you have to identify the gap7:23between both candlestick as i mentioned7:26right7:27so now let's move on to the next topic7:30which is order block7:32so this is a order block that how we can7:35identify them actually order block is a7:38specific candlestick which we can see on7:41the extreme and middle of the move so7:44these are last buying candle before the7:47sale is called order block in a bearish7:50market7:51and last selling candle before the buy7:53in a police market is called also water7:55block and this can be a between of this7:58move and let me show you how8:01so first thing is8:03to identify any other block price must8:06be break of the structure in this case8:09as you can see here market is aware is8:11okay and generally this is our break-off8:15structure right8:17so market momentum is a barrier so where8:19is our order block last buying candle8:22before the sale is a called order block8:25so in this case what is the last buying8:28candle before the cell which is here8:31right so this is our last buying candle8:35before the cell which is here correct8:38so this is our other block bearish order8:41block and we will expect price8:45go higher and then push downside to fill8:48this order block8:50right so price push higher to mitigate8:53this order block before downside so this8:56is a called bearish auto block and order8:59block may be a between of this move9:02for example here okay and maybe market9:05push higher and then market9:09can make auto block here also okay so9:12it's depend on the condition it's depend9:14on the situation i will show you on live9:17chart that how we can identify them okay9:20so this is a bearish order block and9:23same thing apply in a polish order blog9:26and just reverse of the various order9:28block9:29so as you can see here this is a bullish9:33order block9:34when market break higher high in a9:36bullish market so you have to see that9:40where is the last selling candle before9:42the cell so now you can see here on the9:44extreme point this candle is the last9:47selling candle before this by move so i9:50will mark this zone as a bullish order9:53block and one more thing you need to9:55understand9:57order block must have imbalance10:00if there is no imbalance so order block10:02will be not valid right10:05for example here if10:06this10:07candle mitigate this order block already10:10so this order block is not valid to mark10:13this zone correct so because this order10:16block is already filled10:18right so10:20before to mark any auto block imbalance10:23there is imbalance must be10:25we can expect10:27a police scenario in a police market10:30something like this to mitigate this10:32order block and again push higher okay10:35so this is a basic and simple thing to10:38identify the order block and this is the10:41easiest way to identify first identify10:44the trend10:46if market break in a downside10:48okay then you have to wait to see where10:52is the last buying candle before the10:55sale in a bearish market right so that10:57is called your order block right so this11:00one is called bullish order block and11:03what a block must we have imbalance11:05imbalance you know very well i mentioned11:08already right now let's move on the real11:10chart to see how we can identify them11:14as you can see here market break the11:16structure market momentum is a bearish11:19so as i already mentioned that market11:22must be break the structure so market11:24take the structure after broken this law11:27so you have to see where is the last11:30buying candle before the cell first11:32move is here on this level as you can11:35see here there is a last buying candle11:38before the sale is here11:40but11:40as you know this is already mitigated by11:44this move okay so this is not still this11:48is a not valid longer right because it's11:52already mitigated by this move before11:54this break of the structure11:56so after this we can see12:00there is any last buying candle before12:02the cell actually this candlestick was12:05last buying candle before the cell but12:07there is no imbalance12:09right so12:11how we can mark exactly and how we can12:13refine it12:15you have to see the next candle there is12:18any imbalance12:19between this candle i think it's already12:22mitigated so there is a no imbalance12:25right12:26so12:27as you can see in the next scandal which12:29is here this is a imbalance12:33and with12:34order block correct there is a minor12:37imbalance and order blob so this one is12:39a called12:40valid order block which is here12:43right so this is the imbalance and this12:45is a order block so if we cancel here12:48this is the extreme point where we can12:50sell and the next zone when we can12:53expect so this is a last buying candle12:56before the cell is here12:58right12:58so this is our last candle before the13:01cell but this miner big already mitigate13:05this candle so what we can we can refine13:08it okay13:10and we can refine it here like this13:14okay13:15so this can be your13:18refinement order block13:20correct13:21and13:22this is your another order block which13:25is here13:27because this is the last line candle13:29before this move right13:31so there are different different order13:34block so how we can choose13:36which order block is a correct or not i13:38will13:39show you and i will teach you in next13:42upcoming chapter about liquidity right13:46so this is a general thing you have to13:49see that how we can identify the order13:52block actually right13:54so13:55now we can see here13:57market push downside and take some13:59reaction on given order block and then14:02post downside so generally14:05we can see here already this is a14:08another break off structure is here14:11correct so how we can identify the14:14another order block in a paris market so14:17where is the14:19last buying candle before the cell you14:22have to mark first thing14:24this was last vine candle before the14:27cell which is already mitigated right14:30so this one is already mitigated so14:33there is no14:34longer valid here right so this one is14:37already mitigated14:39so14:40where is the next zone14:42next zone is here this candlestick last14:45buying candle before the cell which is14:47already mitigated by this move correct14:50so this is also not valid so where is14:54the next candle14:56this14:57candle can be your next order block14:59which is here right because in this15:02candlestick you can see there is still15:04imbalance correct15:06so this is a still imbalance right15:10so this is a simple15:13and easy way to identify the order block15:15in a paris and bullish market okay15:18so15:19you will get a lot of idea to see in an15:22e-book as i mentioned and diagram15:25everything okay15:27so now let's move on the next point15:30which is called ifc what is ifc ifc15:33means institutional funding candle which15:36candle took the previous candles low or15:39high it's so called ifc and this is a15:42little bit part of the liquidity but15:46this is a very important you have to15:48understand it looks like a quarter block15:50but there is minor difference but this15:53candle is a very powerful compared to15:55auto block right so15:57how we can identify them first thing you16:00have to identify the order block16:03there is necessary okay16:06so as you can see here this is a police16:08market and this is our break off16:11structure correct and this one is your16:13breakout structure and you have to buy16:17so when we can buy some people mark this16:20is a order block no this is a not order16:23block this candle is not16:25last selling candle before the16:28buy right why16:30because this candles already taken the16:32previous candle low okay so as you can16:36see here this is a16:38taken out previous law and close above16:41this high right so this candles close16:45above this high so this entire candle is16:47called ifc institutional funding16:50candidate correct and16:53this candle is more powerful compared to16:56any order block right16:58so we can buy here to push higher like17:02this17:05okay so this is a valid17:08entry criteria for the pi on ifc candle17:13right all right as you can see here in a17:15paris market this is a bearish market17:18market structure is here17:20so17:21first thing you have to mark the order17:24block and ifc so how we can identify and17:28how we can identify difference between17:31both of them so first thing is on the17:34extreme point this is a clean order17:36block right and this is the order block17:39why this is the last buying candle17:41before this drop so we will consider17:44this as a order block and look at the17:47middle of the move we can see market17:49take the high17:52like this and close below it so this17:55move is a call ifc institutional funding17:58candidate and now you can see market18:02tape on this18:03zone and post downside extremely right18:07so this is a difference between order18:09block and ifc18:11i'm not saying that you need to wait18:13only for ifc you can trade also in an18:17order blog and we will discuss in a18:20later in next upcoming chapter in a18:22details so this is a ifc and this is the18:27order block right so this is a main18:30difference between auto block and ifc18:33ifc is a more powerful compared to auto18:36block right18:37so same thing apply here as you can see18:40here18:41if you know18:43that18:44this one18:46is your structure break18:48and this has been liquidity18:51taken out i mean previous i taken out18:55and this will be your next order block i18:58mean next ifc in another time frame19:01still there is no imbalance but in19:03another time frame it's still imbalanced19:06so we can see19:08market tab on it and then push downside19:11extremely19:12so there is different between ifc and19:15auto block these are19:17really powerful candlestick and i'm19:20going to show you some polish scenario19:22to mark the actual19:25ifc19:26so this is another example in a police19:29market as you can see here market break19:31the structure after break the structure19:34you have to identify the order block and19:36ifc19:37so in this move this is a breakout19:40structure goes higher whereas order19:43block order block is here right19:45and now you can see auto block trap here19:48but market take this ifc candlestick19:53type here and push higher so19:56it's more powerful compared to order19:58block it's uh you can see it's the20:00latest version of the order block but20:02why because this candlestick take the20:05previous law means take the previous20:08candles stop loss okay so this candle is20:11a more powerful that's why20:14okay so these are thing you have to20:17understand20:18and you have to mark the correctively20:21order block imbalance and ifc break-off20:24structure i hope you learn a lot of new20:27valuable thing in this episode let's20:29move into the next chapter which is i20:32will talk about what is20:34smc and what is retailers and how and20:39why they fail20:40and let's switch into the next chapter20:43thank you
2,841 words · 475 lines
