Trading Strategy: Order Blocks and Break of Structure
Hello fellow traders,
I’d like to share my trading strategy that combines multiple timeframes and techniques for better accuracy and profitability. Here’s a breakdown:
- 4-Hour Time Frame: I start by identifying the overall trend on the 4-hour chart. This helps me align my trades with the broader market direction. Also, for reference, I scalp so I use the most recent candle: For example.
There was meant to be image here for the reference, but I’m apparently a new user so I can’t submit more than one image.
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5-Minute Chart: I focus on order blocks on the 5-minute chart. These order blocks are areas where significant buying or selling has occurred, indicating potential levels of support or resistance.
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1-Minute Chart: For precise entries, I look for a break of structure on the 1-minute chart. This helps me catch the early signs of a trend continuation or reversal within the identified order blocks.
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Stop loss Placement: I keep my Stoploss tight and dependent on the size of the order block and ATR (average true range)
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Take profit Target: With my Take Profit Targets I aim for 1rr usually, and that’s what I’ve done with my back testing, so I’ve stuck with it. However, I have considered doing 2-3rr, but I have partial take profit targets along with it.
My current back-testing results show a 68%-win rate for the pair A/U (AUD/USD)
Just a reminder, that I scalp on the 5-minute timeframe, so the opportunities are there. I’m just wondering if anyone else who scalps has a similar outlook on the win rate and I’m not just fooling my self.
Although It’s a pretty simplistic strategy, I find that it works.
Thank you for your time reading this,
I’d love to hear your thoughts and feedback on this strategy.
Happy trading,
Maxwell