all right so people really get confused
when it comes to order blocks what's the
difference between an order block and
supply and demand and support and
resistance so in this video I'm going to
differentiate all of them and show you
the similarities and differences between
all of the above okay so what we have
here is us30 on the one day chart so
each one of these candles is one day
what I would like you to do to First
find areas of support and resistance
just so that it's easy visually for you
to see is to change your chart from
candles to lines this makes everything
way easier you can see the bottoms the
tops you don't have to worry about Wicks
or anything if you simply take your
trendline tool and draw out these areas
you can see that this was an area where
the price did not want to break through
this is an area of resistance once it
did break through that it came back down
to test it and use it as a level of
support pushing the price up this is the
most simplistic way to determine support
and resistance now support and
resistance levels as you can see don't
always get respected they break through
they come up and they get retested later
but over time you see that these areas
continue to get respected over and over
again now I'm using a simple line here
but what I would like you to start doing
is using areas that are zones you can
see that this zone now gives a better
area of differentiation and gives you a
little bit more wiggle room so instead
of just simply using a line you can now
start using zones so instead of getting
into a trade in this area you can wait
until it leaves the that area with a
strong rejection and have a bias of the
direction of your trade since we were
able to hit an area of resistance come
down break through and retest it so now
switching the chart back over to
candlesticks you can see a rejection
candle right here another rejection
candle right here once price broke
through it and came down to retest it we
had a nice big rejection candle right
here and these are the areas that you
want to look at you don't want to get
into trades unless you see a nice strong
rejection from that area now to simplify
everything for you this is why
indicators exist at all if you have
trouble finding order blocks what you
can do is simply type in order blocks
into the indicators Tab and choose one
that you like usually the ones that have
the highest number right here are the
ones that you should pick so I just
picked the first one that I saw and now
you can clearly see areas that are
marked up as order blocks these darker
shaded order blocks can all also be used
as areas of support and resistance
they're essentially the same thing
however if a trend is continuing you can
see these bullish order blocks being
created on the way up meaning that at
these areas when there was a slight
pullback and a rejection up there was a
lot of volume in the market in these
order blocks because in an order block
there are a ton of orders and price
continued to make higher highs and
higher lows the simplest way to explain
an order block is that when price pulls
back meaning that this was the high
point right here as price pulled back
and broke through it again the push of
price to break through that previous
high is now an area known as an order
block you can see that right here with
this Wick price came down pushed up to
break that high order block price came
up right here pulled back pushed up to
break through that previous high order
block price came up came down right here
pushed up to break that high order block
most of the time when price comes back
down to an area that is an order block
it Rejects and continues up you can see
getting into entries at order blocks if
you're looking at a bullish Trend and
you set your entries like that
with a stop loss below the order block
or below a little Wick or swing and
Target a one to two you'd be pretty safe
and win a majority of your trades if
you're holding on to a trade with a
trend now when looking at areas of
supply and demand you can either use the
entire demand zone or Supply zone so
that when price comes down to retest
this Zone you can have your entries up
here this will get you a one to two risk
to reward ratio there are three
different types of supply and demand
zones there is range Supply like this
pivot Supply which literally just uses
the last candle like that which will get
you a higher risk reward Ratio or
fractal which just uses the wick fractal
obviously gets you the highest risk to
reward but essentially I don't want you
guys to be too confused there are
specific names for specific things
things order blocks supply and demand
support and resistance generally are all
the same thing yes there are minute
differences depending on who's teaching
it and what they're calling it whether
it's smart money Concepts or Price
action or ICT but essentially it is all
the same stuff if you want a more
in-depth video about supply and demand I
just posted it prior to this one so you
can go watch that video next anyway I
hope you guys enjoyed this video I hope
you got some value out of it if you'd
like to see more videos like this let me
know in the comment section down below
what you'd like to learn next thank you
so much for watching and we will see you
in the next video