orderblocks, CISD and liquidity (what they are and how to trade them)

AI-generated source summary

The analysis focuses on identifying order blocks and manipulation patterns in Forex and crypto markets. An order block is defined as a single candle or series of candles that move impulsively in one direction before closing impulsively in the opposite direction. Specifically, a bullish order block is formed by series of bearish candles that are aggressively closed by bullish candles, whereas a bearish order block is formed by series of bullish candles that are aggressively closed by bearish candles. The video highlights that when identifying order blocks, traders should focus on the candle bodies only, excluding wicks, and prioritize larger, more defined blocks for higher probability trades. The concept of internal versus external range liquidity is also discussed, explaining how smart money traders anticipate and capitalize on these liquidity sweeps to enter trades at favorable prices. For instance, selling into buy-side liquidity or buying into sell-side liquidity is a common strategy. The analysis shows that the Asian session often leads to accumulation, while London and New York sessions tend to be for distribution and manipulation. Therefore, understanding these session dynamics and identifying key institutional levels are crucial for predicting future price movements.

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