• Setup: Micro consolidation (1–3 bars), price breaks structure and retests
• Entry: Enter on OB confirmation wick re-test
• Stop Loss: Below OB or structure break
• Take Profit: VWAP, midpoint, or pre-market level

Why?

You often get a pullback into a price block or consolidation zone, then a reversal when liquidity is absorbed and the trend resumes.

• 1–3 bar consolidation zone
• Liquidity sweep just outside zone
• Engulfing or pin bar reversal
• Retest of the OB → entry
• Tight SL just beyond structure

A Micro Order Block Reversal is a high-precision entry setup used by smart money and scalpers. It occurs when price creates a small order block (OB) through brief consolidation, then fakes out or sweeps liquidity, and reverses direction.

• A micro order block is a tiny consolidation zone (1–3 candles) where large players accumulate positions.
• Price breaks structure, sweeps liquidity, and then retests the OB before reversing.
• This gives early entries with tight stop losses.

• ✅ Look for 1–3 candle consolidation near a recent swing high/low
• ✅ Watch for a fake breakout (liquidity sweep) just above/below the zone
• ✅ Wait for a snap-back move with a strong reversal candle (engulfing, pin bar)
• ✅ Enter on the retest of the OB (a wick back into the zone)
• ✅ Stop Loss: Just outside the wick or structure break

• Captures smart money entries early
• Offers high reward-to-risk setups
• Effective in reversals or range-bound markets

Example:

• On a 1-minute chart, price consolidates with 3 small candles after making a local low.
• It sweeps just below the range, then prints a bullish engulfing candle that closes above the OB.

• Trade Entry: Long on retest wick back into the OB.
• Stop Loss: Just below the OB low.
• Target: VWAP or mid-range.

Why it worked: Liquidity was grabbed below structure, and smart money reversed price.

Back