TRADABLE VS
NON-TRADABLE ORDER
BLOCKS
The Best Trading Strategy
WhatsApp KenneDyne spot•
,ABBREVIATIONS & DEFINATIONS
ORDER BLOCK [OB]
OB is a Down/Up Candle before the move Up/Down.
Down Candle is a Bearish Candle
Up Candle is a Bullish Candle
Bullish Order Block [BuOB] is Down candle before the move up
Bearish Order Block [BeOB] is Up Candle before the move down
Hint:
For a Risk Entry Type;
If the BuOB is not wicky, we place our Buy Limit at the highest price and Stop Lose [SL] at the
lowest price of the candle.
If the BuOB is wicky, we place our Buy Limit at the open of the body and SL at the lowest price
Reverse everything for BeOB
IMBALANCE [IMB]
This is Insufficient Trading in the market. Sometimes called Liquidity Void [LV].
When there is insufficient trading in the market, the price often comes back to fill out the orders
that were left.
Imbalance is created by 2-3 or more Extended Range Candles [ERC]
ERC candle often closes at 80% of the candle range
Exhibit:
When we have 2-3 or more bullish candles rallying, this shows insufficient trading. i.e. there were less
sell orders to be paired with buy orders.
Assumptions;
When the Market Maker [MM] want to move price up at a certain level, it is assumed that, there should
be enough sell orders to pair their buy orders with (this is how they make profit).
So, when the MM moves away from a given level with strength and magnitude, leaving behind a LV
(IMB), we can use this to assume that sell orders that were available at that level were not enough to pair
with their Buy Orders.
Therefore, the MM will, often, come back at this level for mitigation.
K e n n e D y n e s p o t • 1 | 27
, MITIGATION
Mitigation means; to reduce risk.
When the MM moves price away from a level with strength and magnitude, say they are buying; it is
assumed that they are enticing retail traders to join the move.
And because most retail traders are price chasers, they join the ride with their Stop Loses [SL] set.
This is the reason (assumed) that the MM will come back to clear retail traders SL.
When their (Retail Traders) SL are hit, they are knocked out of the move, hence MM mitigating their risk
(THEY WILL RESUME THE INITIAL TREND HENCE MOVING ALONE).
NOTE; Mitigation is not a must thing after imbalance trading in the market because this will always
depend on how much profit the MM has made
Hint:
To know that the MM are mitigating, there are a number of things you need to consider.
For instance, the LV must accomplish some tasks before validating the OB.
Exhibit:
For Instance;
To validate a BuOB with a Bullish LV;
1) LV should take out opposing OB or
2) LV should Break Out Market Structure or
3) LV should Create Equal High EQL. This is valid IFF the price is bouncing from HTF BuOB (For
Reversal Entry) or a trading market (for re-entries)
NOTE; HTF OBs are more effective than LTF OBs, especially when these conditions are met
K e n n e D y n e s p o t • 2 | 27
NON-TRADABLE ORDER
BLOCKS
The Best Trading Strategy
WhatsApp KenneDyne spot•
,ABBREVIATIONS & DEFINATIONS
ORDER BLOCK [OB]
OB is a Down/Up Candle before the move Up/Down.
Down Candle is a Bearish Candle
Up Candle is a Bullish Candle
Bullish Order Block [BuOB] is Down candle before the move up
Bearish Order Block [BeOB] is Up Candle before the move down
Hint:
For a Risk Entry Type;
If the BuOB is not wicky, we place our Buy Limit at the highest price and Stop Lose [SL] at the
lowest price of the candle.
If the BuOB is wicky, we place our Buy Limit at the open of the body and SL at the lowest price
Reverse everything for BeOB
IMBALANCE [IMB]
This is Insufficient Trading in the market. Sometimes called Liquidity Void [LV].
When there is insufficient trading in the market, the price often comes back to fill out the orders
that were left.
Imbalance is created by 2-3 or more Extended Range Candles [ERC]
ERC candle often closes at 80% of the candle range
Exhibit:
When we have 2-3 or more bullish candles rallying, this shows insufficient trading. i.e. there were less
sell orders to be paired with buy orders.
Assumptions;
When the Market Maker [MM] want to move price up at a certain level, it is assumed that, there should
be enough sell orders to pair their buy orders with (this is how they make profit).
So, when the MM moves away from a given level with strength and magnitude, leaving behind a LV
(IMB), we can use this to assume that sell orders that were available at that level were not enough to pair
with their Buy Orders.
Therefore, the MM will, often, come back at this level for mitigation.
K e n n e D y n e s p o t • 1 | 27
, MITIGATION
Mitigation means; to reduce risk.
When the MM moves price away from a level with strength and magnitude, say they are buying; it is
assumed that they are enticing retail traders to join the move.
And because most retail traders are price chasers, they join the ride with their Stop Loses [SL] set.
This is the reason (assumed) that the MM will come back to clear retail traders SL.
When their (Retail Traders) SL are hit, they are knocked out of the move, hence MM mitigating their risk
(THEY WILL RESUME THE INITIAL TREND HENCE MOVING ALONE).
NOTE; Mitigation is not a must thing after imbalance trading in the market because this will always
depend on how much profit the MM has made
Hint:
To know that the MM are mitigating, there are a number of things you need to consider.
For instance, the LV must accomplish some tasks before validating the OB.
Exhibit:
For Instance;
To validate a BuOB with a Bullish LV;
1) LV should take out opposing OB or
2) LV should Break Out Market Structure or
3) LV should Create Equal High EQL. This is valid IFF the price is bouncing from HTF BuOB (For
Reversal Entry) or a trading market (for re-entries)
NOTE; HTF OBs are more effective than LTF OBs, especially when these conditions are met
K e n n e D y n e s p o t • 2 | 27
