absence of an impulse exit indicates the zone's weakness and a high probability of its breakout. In crypto trading, the most accurate signals are generated on timeframes from H1 to Daily. The candlestick serving as an order block must be completely engulfed by the subsequent movement, which indicates the market maker's takeover.
📌 Practical application:
Trade entry is performed with a limit order from the order block boundary. The stop-loss is placed beyond the opposite extreme of the zone. The optimal risk-to-reward ratio for such trades is 1:3, as the order block serves as a strong price magnet and a powerful barrier.
What we see on the chart:
OB (Bullish Order Block) formation: I've highlighted the "engulfing candle" in yellow. This is the last candle before the aggressive impulse exit.
Price action: After the upward impulse, the price corrects ("Retest phase"). Note how carefully it enters the highlighted order block zone.
Execution: There was no complete overlap, but the price tested the Equilibrium level (50% of the OB zone) and bounced, confirming the zone's strength and resuming the uptrend.
This is clear evidence of how the order block acts as a price magnet.
📊 Summary:
Trading from order blocks allows traders to follow the liquidity of major players, minimizing market noise and executing trades at points with the highest mathematical expectation.