Lesson 21 – Order Blocks

The software simulator for MT4 I use to backtest: https://soft4fx.com/software/forex-simulator.php

In this Lesson 21, I will backtest the indicator:

by PZ called Order Blocks. Here is the link: https://www.pointzero-trading.com/Products/view/PZOrderBlock

  • Available in MT4/MT5
  • Non-repainting indicator.

This indicator can be used a primary indicator solely on its own or combine it with a complementing indictor.

In the video I backtest it on daily EURUSD Year 2020-2021

Rules I used:

  • 2% risk
  • 1.5ATR stop-loss
  • take profit / exit on the opposing direction order block
  • stop loss up to break-even when price moves size of order block.

+ 12.47%

Just add another filter (such as a continuation indicator) and I was in the EURUSD 30+% range on the same year.

My exact results 2020-21 results:

EURUSD +36.31%

AUDNZD +8.92%

What exactly is an order block? Well, it is defined as a buying/selling signature that is left by larger forex institutions.

This is a great type of indicator that uses a different type of methodology different to oscillator indicators that calculate with averages.

If you already trade order blocks this gives you a definitive signal.

Buy it from PZ: https://www.pointzero-trading.com/Products/view/PZOrderBlock

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