There are a few prevalent myths surrounding Order Blocks Forex Trading, it helps to drop any misconceptions.
Let’s clear up some inaccurate assumptions:
Myth 1: Order blocks guarantee a reversal.
Reality: Order blocks act as potential turning points but don’t guarantee a reversal. Look for confirming signals.
Myth 2: Any close beyond an order block is highly significant.
Reality: Closes above or below order blocks don’t necessarily generate major moves. Seek confirmation.
Myth 3: Order blocks work equally well in all market conditions.
Reality: Order blocks seem more effective during trends versus choppy periods. Adapt your strategy.
Myth 4: Order blocks are all you need to make trading decisions.
Reality: Combine order blocks with other analyses for best results.
So the reality is that unrealistic hype exists around order blocks. View them as a useful piece of the puzzle, not a stand-alone solution. With measured expectations, you can use order blocks successfully as part of a complete trading plan.
