BULLISH EXTREME ORDER BLOCK

Bullish Extreme Order Block

Bullish Extreme Order Block." This concept is part of a trading strategy that some traders use to identify potential reversals in the market

1. BOS (Break of Structure): This indicates a point where the market structure has been broken, suggesting a potential change in the trend. In the context of a bullish extreme order block, a break of structure to the downside is often observed first.

2. Inducement: This represents a phase where the price action induces traders to enter the market, often in the direction of the previous trend. It's a phase that can trap traders on the wrong side of the market.

3. Engineering Liquidity: This term refers to the idea that large market participants are intentionally moving the price to areas where there is liquidity, such as stop losses or limit orders, to fill their large orders. The "engineering liquidity" phase is where the market moves to these liquidity pools before reversing.

4. Extreme Order Block: This is the area where the market is expected to reverse. It's considered an "order block" because it's believed that institutional traders have placed a significant number of buy orders in this area, which will block the price from falling further and instead push it upwards.

Bullish Movement: After hitting the extreme order block, the market is expected to reverse and move upwards, as indicated by the blue shaded area. This is where traders who have identified the bullish extreme order block would look for price to move higher, indicating a bullish trend.

It's important to note that this is a simplified explanation of a trading concept that involves a deeper understanding of market dynamics, and such strategies do not guarantee success. Traders often use additional indicators and analysis to confirm potential trade setups.

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