Find Best Order Blocks With This Indicator!

Video: Find Best Order Blocks With This Indicator!

Explanation behind the Indicator

This strategy is meant to confirm trades which are based on Order Blocks. This is for struggling traders or newbies.

The ETM guy said that the indicator should be used as training wheels. As you get more experienced, you will not need to use this indicator.

The Strategy

what this is about: The strategy is explained.

This strategy is called “Shark Fin Strategy”. It was created by Steve Mauro.

The indicator which will be used is called TDI. It looks like this:

The blue lines are called the “water”. They act as the boundaries of the water.

Buy entry & exit

Entry conditions:

1) The green line should be below the bottom blue line and form a point. This signifies price going outside of its volume extremes.

3) Then wait for the red & green lines to come back inside the blue lines.

2) Wait for the red line to cross above the red line. This means that the red line crosses the median average of price. (buy here)

Exit conditions:

You have 2 options:

Exit the trade when the green line crosses above the yellow line
Exit the trade when the green line crosses above the top blue line

Sell entry & exit

Entry conditions:

The green line should be above the top blue line and form a point. This signifies price going outside of its volume extremes.
Then wait for the red & green lines to come back inside the blue lines.
Wait for the red line to cross below the red line. This means that the red line crosses the median average of price. (sell here)

Exit conditions:

You have 2 options:

Exit the trade when the green line crosses below the yellow line

Exit the trade when the green line crosses below the bottom blue line

Trade Example 1

what this is about: An example of using the Shark Fin strategy to confirm an OB is shown.

Here we see an order block on the 1H timeframe which was conceived by a purge. Later on, it built up inducement (the dotted line).

To confirm this entry, we go down to a lower timeframe. Then, we wait for price to reach the Order Block and reject off of it (this is our entry trigger).

Once that happens, we wait for the Shark Fin signal (to confirm the Order Block). Once we get the signal, we know that the Order Block we had on the 1H timeframe is significant and we enter a trade.

The indicator is barely visible but if you look closely, you’ll see that we had a buy entry.

The exits will be based on the green line crossing above the yellow or blue line.

He also gave another exit condition. First, find the Purge which happened and the latest peak (the top of the latest range). Draw a fib which connect those 2 points. By drawing the fib, you’ll see the levels (25%, 50%, 75%). You could exit at the 50% level or the extreme of the fair price range.

Trade Example 2

what this is about: An example of using the Shark Fin strategy to confirm an OB is shown.

Here, we see a 1H Order Block. This would be our point of interest.

Then, we’re going to move down to a lower timeframe (15 mins in this case). Then, we’re going to wait for price to reach the Order Block (which it did).

Now, we’re going to wait for a sell signal from the TDI indicator. We can see here that we did get a sell signal. Now, we can take a trade.

The exits are the same as before. You can exit when the green line crosses below the yellow or blue line.