Original subtitles

Lower time frame order block refinement. So now that we've

touched base on order blocks we can get into how we can refine

them down and essentially um be more precise with you know our

trades. So so the first thing that we need to do with order

blocks is we can refine them down when possible. So it's

important for us to note where that momentum has come into the

market. Meaning where have the institutions previously got in.

Because what happens is wherever that momentum started

price will usually come back to that area to mitigate and then

for price to continue its move. Whether that be to the upside

or to the downside. The reason why refining order blocks down

on a lower time frame is beneficial because it tightens

our area of interest. Meaning we can get in more precise with

our with a tighter stop loss and usually decrease our draw

down on a trade. It will also give us the chance to increase

our risk to reward on our trades so we can get a better

return on investment. Now the examples below show an order

block refinement. So let's have a look. So let's start on the

left here. This is showing a 1 hour bullish order block. So we

had this bit of structure. This is the last down candle before

the up move that broke structure. As we've learnt

already. So this would be our order block. We take the higher

and the low. Now for this example we're gonna say that

this is er circumference of ten pips. Okay so to the high and

to the low we're looking at ten pips. Okay. Now if we look at a

15 minute time frame perspective as you can see

here. This is what we could be seeing when we drop down from

an hourly time frame to a 15 minute time frame. Take a look

at how we are able to refine our order block zone and

decrease our area to work with. Okay? So this may be you know

what we could see on the hourly. I know it's only three

candles but when we drop down to a 15 minute time frame we

can look at right where's that momentum come into the market?

Well in this example is this candle here which also broke

structure. This is the last down move. And this down move

on the 15 minute time frame could be five pips. Okay

ten pips for an hourly order block refine down on the 15

minute to five pips. Now what this means for our entry and

stop loss is we can obviously get in with half the size of a

stop loss. Meaning, more precision, more risk to reward

and potentially uh less draw down on a trade. So, this is

what it means by um lower time frame refinement. Now let's get

into some examples on the chart so I can um show you the power

of this. We'll start off with some bullish order block

refinement and then we get into some bearish order block

refinement. Okay so the first example we're gonna be looking

at is a bullish order block refinement. Now the left chart

here is an hourly time frame on the Aussie US dollar. And this

chart on the right is the 15 minute time frame. So let's

start on the left here. So let's just zoom in. What do we

have? Well, let's just look at price section. We had a high.

We pull back and then we did break structure. So, we put in

a new higher high. So, we have a clear order block right here.

So, we take the last down move. This is this is the last down

candle. Before the breaking structure. So, this is our 1

hour order block. Now, if we was to look at entering based

purely of this, we would enter at the top with our stop loss

at the bottom. So let me get my measurement tool where you can

see the height of this candle to the low. We're looking at

around eleven pips. Okay?

1111 pip stop loss based purely on the hourly order block. Now

if we look to the right and see if we can refine it down. This

is the 15 minute time frame. And if I just go to the hourly

quickly, you can see that our hourly order block is this

candle just like here. Now let's go to the fifteen.

Can we refine it down? So where has the momentum come in? Well

it's clearly come in on this candle here okay. You can see

how large and momentous this candle is. Now what we can do

is refine our hourly order block down to well firstly

where's the last down candle or it's this one here but if we

take the next candle we haven't engulfed the order block okay

so let's refine it down to this candle here And what that's

essentially doing is taking our stop loss for which was over

here at 1111 pips. Refining it down to six pips. As you can

see the the to the high and low we're looking at six pips okay

so if we look at where price is you can see we tapped in

perfectly here we would be running at 11.15 and over to

the left we'd be running at around 5.6 percent. So you can

see you know we've we've pretty much what we have we've doubled

our return. Just by understanding you know

refinement and how we can be more precise. So can we take

this even a step further? Yep. Well if we look at the next

candle you can see we have this little dolce candle here. It

isn't showing any momentum. And it still hasn't engulfed the

order block. So we can take it a step further and look at this

as our order block here okay. As you can see, price impulsed

up and we come back and we tapped in. So, we can refine

our zone even more So technically speaking we can

have a 3.5 pip stop loss. Now do I recommend it? Not really

because we have this low here so we can still account for the

low. But the concept remains we tapped in where the momentum

began. Tapped in perfectly and then we we saw the move to the

upside. So if we can refine it down to this candle we're

looking at 3.5 pips and our trade would be running just

short 19% in one candle. So that's the power of you know

refinement and looking to see where that momentum's come into

the market. Now let's get into another example and let's look

at EU. Taking another look at EU um again we had the hourly

time frame on the left and the 15 minute time frame on the

right. So starting on the hourly we had an impulsive move

up above structure. As you can see we broke structure. So that

gives us a order block to work with. Let's just zoom in. So

firstly let me just put on the order block which would be this

last down move before the up move. The next candle did not

show any momentum and it didn't engulf the order block. So we

can refine it down. Now in this case we do have a large wig so

the area to work with is larger. So it comes down to

your own preference on what you wanna what candle you wanna

take. You know you'll you'll figure out in your testing. Um

as time goes on but we're gonna take this one because this is

the last move in this consolidation before the

expansion out. You can see we broke and we pulled back we

tapped in and then we continue to the upside. Now if we

measure from the high and the low we're looking at 17.6 pips

and you know we tapped in we got triggered into the trade

and we're running around 2.8 percent. Now 15 minute time

frame. What do we have? We have the last down move with this

large wick before expanded out out of this consolidation

range. We then tapped back in. But as we know we can refine

this down even more. So firstly if we just say we entered with

a limit order as price come back in. Stop loss would be

fourteen pips. Whereas here it's seventeen pips. But we can

still refine it down even more. So, we can take this candle and

look at the next one because we haven't shown any real

momentum. So this is the candle that we can be looking at to

take. Because you can see the next candle is when we actually

got a breakout of this range. So the momentum came in on this

candle. So what this allows us to do is uh reduce our stop

loss from fourteen pips down to as little as six pips. Now

obviously you wanna account for a couple pips but let's just go

with this for now. So you can see we tapped in perfectly but

then we then continue to the upside. So six pips whereas

before we was looking at fourteen. So our trade would be

running highs of four point five. But as we can refine it

down to six pips we've doubled more than doubled our profit to

ten point three. And to here where we was looking at the

hourly order block. We had highs of just 3.4 percent. So

you can see the power of this refinement. Now obviously these

are these are risky entries if you're just placing any trees

you know without no confirmation once price comes

in. Now we will get into how we can wait for more information

but a quick little tip of what we look for. Is once price taps

in on an hourly or a 15 minute order block into the order

block we can drop to a lower time frame like the 5 minute 1

minute or even a 32nd time frame and what we're looking

for is essentially priced to tap in just like this and then

show us the breaker structure. So just like we have here where

you know price is breaking structure. We wanna see it on a

lower time frame. So just like this we wanna see a nice

impulse up which will look like this. So, you can see we broke

above structure so we had this lower low lower higher a break

above and let's just say that this is a higher time frame.

Poi point of interest or order block. Okay so we tapped in and

then we wanna see that lower time frame breakage structure

which will then create an order block on the lower time frame.

So this gives us more confirmation. A lot more

confirmation rather than taking these riskier entries you know

with the the one tap and then go. We're waiting for price to

show its hand and once get this breaker structure, we can then

obviously enter We have a very tight stop loss and this is how

we are able to get involved with like a one, two, or three

pip stop loss and then obviously have a really good

risk to reward in trades. But we will get into this in later

videos.

But yeah that's that's the second example. Let's get into

another one. Next example we have pretty much the same thing

but I wanna drill this um concept as much as I can

because it's very powerful so left we have hourly time frame

we impulsed up breaking structure so this is where the

move initiated from so let me just zoom in So again we have

the last down move here. But we can refine it down to this

candle here. Just like that. Which gives us let me just

delete this off. Which gives us a circumference of fifteen

nearly sixteen pips. Okay. So once we pushed off we can set

our entry. And we would have got tagged in on this candle

here. Now our stop loss would need to be as high as 15.7 pips

Okay so you can see we tapped in once twice. Again we pushed

off but then we come back in to push lower before we then

pushed off and broke structure.

15.7 pips is a very large stop loss size. So let's see how we

can refine it down on the fifteen. So here's the fifteen.

Now that this is that move here. It's just on the fifteen

time frame. You can see let's just zoom right in the last

down move is here on this Doji, okay? So the momentum came in

on the next candles which also broke above this high. So this

is the last down move, okay? So it's likely for price to come

back to this area potentially come lower to here but you know

it could come to here and then continue. So let's go and see

what happens. So here you go. We also built some liquidity um

from from these lows here. Now you can see we did wick in. So

this was probably caused by news but you know news is just

a way for the large institutions to you know get in

push price down to mitigate and close out any sale positions

they have. Before stacking orders and then continuing. So

if we was to set our entry on the 15 minute order block.

We'll be looking at our entry there. We have a stop loss. We

have this quick here but let's just go to the order block. So

we're looking about four five pips. Let's say five pips. So

you can see we're able to reduce our stop loss size from

here which was fifteen to here which is five pips. So ten pips

reduced from our stop loss which ultimately is gonna give

us AA lot better risk to reward on trades. So you can see the

higher up here we're looking at 11% and here on the hourly time

frame. Three percent. Now we're on AUD USD looking at a sell

example. So we're looking for bearish order block refinement.

On the hourly time frame here we did have AA very impulsive

move down that broke a lot of structure. So we would have an

area or an order block up here that we could look at. But as

we look at what price done we pulled back then we broke

structure again. Create another order block. So it doesn't it

doesn't necessarily mean price needs to come up here because

we've broken structure already. So this could be used for a

later date. We broke structure here. So we have the bullet

bearish order block. The last bullish candle um before the

down move. Now if we're looking at entering we would have been

tagged in on our limit order here with our stop loss needing

to be twelve pips. Okay so you can see from the higher and the

low is twelve pips. Of that order block. Now a good target

for us to be looking at is the low which is here or just below

it. So we're looking at 5% to the low. But if we again look

to the right this is the 15 minute time frame. We can

Actually, let me just zoom in. Let me zoom So this is that

same move but we can refine it down. So if we look at the

hourly time frame we have these wicks. Now when we see wicks at

at the top like this it basically means it's an area of

interest on a lower time frame. So this is that on the fifteen

minute. So we have this move to the downside which broke

structure as well. And we have the last bullish up move before

the down move but we can refine it to this candle because we

haven't shown the momentum. So this is our refined order

block. So we're now looking at seven pips as opposed to twelve

pips from the hourly order block. Okay and then you can

see what we got was price tapped in. Mitigated to the 50%

of the order block and then the momentum came in. Now as we've

refined it down we have nearly 9% to the low as opposed to 5%

here. So we've nearly doubled our return just to the low.

Okay so let's look at the hourly time frame. You can see

we've got that really nice reaction as we tapped in.

Twelve pips stop loss here. Refined down to seven pips. And

then you can see we then did put in that new low and we

would have hit our target. For 5% here and then you know nine

percent. As you can see we're putting that new level low.