User Tools

Site Tools


mobr

This is an old revision of the document!


Back

๐Ÿ”น Strategy 4: Micro Order Block Reversal

  • Setup: Micro consolidation (1โ€“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

๐Ÿ”น Micro Order Block Reversal

Why?

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

๐Ÿ”„ What is a Micro Order Block Reversal?

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.

๐Ÿง  What Is It?

  • A micro order block is a tiny consolidation zone (1โ€“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.

๐Ÿ” How to Spot It

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

๐ŸŽฏ Why It Works

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

โœ… Micro Order Block Reversal

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

mobr.1743917642.txt.gz ยท Last modified: 2025/04/06 05:34 by lwattsii