All language subtitles for 2) Lower Timeframe Order Block Refinement

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.