I just learned about a pretty interesting concept in trading that many people haven't paid attention to — what is OB and why is it important for traders.



Actually, what OB is quite simple — it's just a special price zone you can use to find good entry points. More specifically, what is OB in the trading context? It's the last candle before the price makes a strong move, which can be either up or down. I like this perspective because it helps me identify effective reversal opportunities or continue with the trend.

There are two types of OB you need to know. Bullish OB is a bearish candle near support, just before the price starts to rise sharply — this is a signal for me to enter a buy order in an uptrend. Bearish OB is the opposite, a bullish candle near resistance before the price drops — this is when you should prepare to sell.

I realize that OB is not just a theoretical concept but also a very strong supply/demand zone. When you understand how to identify it clearly, placing Entry, Take Profit, and Stop Loss becomes much easier. The candle immediately after the OB is often an Engulfing (Bullish or Bearish), and that is a very reliable confirmation signal.

But here’s the important part — you shouldn't trade every OB you see. You need to understand the market structure first. If you don't master Market Structure and Dow Theory, you'll be easily fooled by fake OBs. That’s why OB is not just a standalone concept but needs to be learned together with other knowledge.

In summary, OB is a very powerful and easy-to-understand tool if you start correctly. Buy when the price touches a Bullish OB in an uptrend, sell when it touches a Bearish OB in a downtrend — that’s the basic strategy. But remember, this is just informational, not investment advice. Every trader needs to find a method that suits them best.
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