EUR/USD
An order block appears after a strong uptrend or downtrend. Then the order block looks like a bottom or top. Price escapes the order block with high momentum breakout, or it results in a reversal of a trend. Price should not remain held in the order block for a longer period.
For drawing a bearish order block, simply mark the high of the rally and the recent swing low and draw a rectangle around it. Now extend the rectangle to the right into an empty area of the chart where the price will act or react in the near future.
Similarly, if you want to draw a bullish order block, look for a downtrend to pause. Then make the low and the recent swing high and draw a rectangle around it, extending to the right part of the chart.
For drawing a bearish order block, simply mark the high of the rally and the recent swing low and draw a rectangle around it. Now extend the rectangle to the right into an empty area of the chart where the price will act or react in the near future.
Similarly, if you want to draw a bullish order block, look for a downtrend to pause. Then make the low and the recent swing high and draw a rectangle around it, extending to the right part of the chart.
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