OB + FVG Only HTF PD ARRAY YOU NEED

Introduction: OB + FVG

1. Order Block (OB):

   • An OB represents areas of significant institutional activity, such as a bullish or bearish candle before a reversal or a strong directional move.
   • These zones act as support or resistance where price often reacts upon retesting.

2. Fair Value Gap (FVG):

   • The FVG is the imbalance or gap left behind in price when market inefficiency occurs, usually visible between candles.
   • Price often retraces to these gaps to "rebalance" before continuing its directional move.

3. HTF Context:

   • Combining OBs and FVGs on higher timeframes offers traders a reliable way to anticipate where price may pull back, consolidate, or reverse.

Trade Setup Idea Using OB + FVG

1. Analyze HTF Levels:

   • Start with the weekly chart to identify the OB and FVG.
   • Highlight areas such as weekly highs and lows, as these are key liquidity zones.

2. Mark the FVG and OB Zones:

   • Locate an FVG (highlighted in pink on the images) near or overlapping with an OB zone.
   • Draw the OB level (either the open or midpoint of the significant candle).

3. Wait for Retracement:

   • Allow price to retrace into the FVG and OB zone. This is the "premium" area where institutional traders often step in.
   • Observe for rejection signs or reversal patterns in this zone.

4. Entry and Confirmation:

   • Enter a long or short position when price reacts to the FVG or OB with confirmation, such as:
     • Rejection wicks.
     • Bullish/bearish engulfing candle on smaller timeframes.
     • Change of structure (e.g., break of minor highs/lows).

5. Risk Management:

   • Place your stop-loss just below the OB for longs or above the OB for shorts.
   • Use a 2:1 or higher risk-to-reward ratio, targeting significant liquidity zones like the weekly high/low.

6. Exit Strategy:

   • Partial profits can be taken at the next HTF imbalance or liquidity zone.
   • Fully exit at a strong resistance/support level.

Practical Example (from the images):

• Weekly Chart:
  • The OB is a bullish candle (indicated near the weekly low).
  • The FVG zone is created between Monday and Wednesday.
• Daily Chart:
  • Observe price retracing into the pink-highlighted FVG and reacting near the OB level.
  • The rejection near this confluence zone signals a potential entry.