Best 1 minute order block trading strategy to grow small account

Introduction and Overview

In this episode of "Smart Risk," the focus is on an innovative tutorial and complete guide to a scalping strategy in the gold US dollar pair. The strategy combines the smart money concept with RSI Divergence for accuracy and reliability.

Scalping Strategy Basics

• Scalping strategies do not use indicators as entry reasons but rather as confirmation.

• This advanced scalping strategy requires concentration and understanding of advanced concepts, strategies, entry reasons, and trading plan discipline.

• Subscribe to the channel for more advanced free trading content.

Understanding Smart Money Concept

Before diving into the details of the strategy, it's important to understand key concepts related to smart money. These concepts have been explained in previous episodes.

Key Concepts:

• Analyze market structure in a 15-minute timeframe and identify order blocks.

• Switch to a 1-minute timeframe and wait for a change of character in price action.

• Look for RSI Divergence signals as confirmation for entry.

• Place trades within one-minute order blocks.

Applying the Strategy on Gold US Dollar Pair

Now let's apply the four major steps of the scalping strategy on a price chart of gold US dollar pair.

Step 1: Analyzing Market Structure

• Wait for price to make big momentum candles that break recent structure.

• Identify potential order block zones where price can get rejected.

Step 2: Change of Character in Price Action

• Zoom into a 1-minute timeframe.

• Look for a change of character formed by price breaking and closing above the last lower high.

• Identify new one-minute order blocks generated by this change of character.

Step 3: Analyzing RSI Indicator

• Add the RSI indicator to the chart.

• Look for potential Divergence signals between price and RSI.

• Bullish Divergence signal on RSI confirms entry.

Step 4: Placing the Trade

• Place a buy order within the valid one-minute order block.

• Set stop loss a few pips below the lowest point of the area.

• Optimize entry point and reduce potential loss by 50%.

• Consider taking profits at one-to-two targets or target next major level of structure in front of the market.

Conclusion and Final Thoughts

The final step is to place our order within the order block area, optimizing our entry point and managing potential losses. Taking profits can be done at specific targets or by tracking price movements.

Key Points:

• Optimize entry point and manage potential losses with stop loss placement.

• Take profits at predetermined targets or track price movements for further entries.

By following these steps, traders can apply this advanced scalping strategy in their trades for accuracy and reliability.

Liquidity Zones and Order Blocks

In this section, the speaker discusses liquidity zones and order blocks in trading. Liquidity zones that form before an order block are known as Alpha order blocks, which hold more importance to price movement. The speaker emphasizes the need for traders to accept losses with confidence and provides tips on risk management.

Understanding Liquidity Zones and Order Blocks

• Liquidity zones formed before an order block gain more importance in price movement.

• Alpha order blocks refer to the order blocks that are spotted after liquidity zones.

• Placing orders within the middle of an Alpha order block can lead to profitable trades.

Risk Management Tips

• Traders should be prepared for situations where stop loss is hit and accept losses confidently.

• Placing multiple orders after orders is optional and should only be done with sufficient skill and confidence.

• When risking a certain position size for a change of character's order block, it is recommended to risk half of that amount for subsequent trades.

• It is advised not to have more than five open positions for the same analysis on a pair.

Identifying Trading Opportunities

This section focuses on identifying trading opportunities using examples from the gold/US dollar pair on a 15-minute timeframe. The speaker explains how to spot perfect order block zones, analyze change of character, and use RSI divergence signals for confirmation.

Identifying Perfect Order Block Zones

• Wait for price to make big momentum candles that break the recent structure of price.

• Spot perfect order block zones where price potentially gets rejected and provides trading opportunities.

Analyzing Change of Character

• Zoom into a one-minute timeframe after price reaches the identified order block zone.

• Look for a change of character formed by price indicating a potential shift in direction.

Using RSI Divergence Signals

• Add the RSI indicator to the one-minute timeframe chart.

• Analyze the A and B points on both price and RSI charts to identify divergence signals.

• Bearish divergence on RSI can confirm a potential entry point.

Risk-to-Reward Ratio and Trading Examples

This section discusses risk-to-reward ratio and provides trading examples using the gold/US dollar pair on a 15-minute timeframe. The speaker explains how to place orders within change of character's order blocks, set stop loss and take profit levels, and manage multiple orders.

Risk-to-Reward Ratio

• Place orders in the middle of one-minute change of character's order blocks.

• Set stop loss a few pips above the highest point of the area.

• Set take profit at major levels to ensure a favorable risk-to-reward ratio.

Managing Multiple Orders

• After initial trade, place another order with smaller size if price forms a new BOS and order block.

• Adjust stop loss accordingly if price hits stop loss for any order.

• Continue placing new sell orders as long as price forms new BOS and order blocks.

These are the main topics covered in the transcript.

Adding RSI Indicator and Confirmations for Entry

In this section, the speaker discusses the importance of adding the RSI indicator and looking for confirmations before placing a buy order at the order block.

Adding RSI Indicator

• The speaker emphasizes the need to add the RSI indicator to the price chart.

• A line is drawn between points A and B on both the price chart and the corresponding points on the RSI chart.

• It is observed that while price is making lower lows, the RSI is making higher lows, indicating a bullish divergence signal.

• This serves as confirmation for entry.

Setting Up Buy Order and Stop Loss

In this section, the speaker explains how to set up a buy order at the 50% change of character's order block with a stop loss below the lowest point of the order block area. Take profit is set at a 15-minute major structure level.

Setting Up Buy Order

• The time frame is zoomed into one minute.

• A buy order is placed at the 50% change of character's order block.

• The stop loss is set a few pips below the lowest point of the order block area.

• Take profit is set at a 15-minute major structure level.

Placing Additional Orders in New Order Block

In this section, it is discussed how additional orders are placed in a new order block that forms after activating a long position.

Placing Additional Orders

• Price creates a new BOS (Buy Order Block) after activating our long position.

• Another long order with smaller size is placed in the middle of this new order block.

Results and Final Thoughts

In this section, the speaker discusses the outcome of the trading session and shares some final thoughts.

Results and Final Thoughts

• The long positions are activated, and the take profits for all three open positions are hit at the major 15-minute structure level.

• Although there was a modest loss of capital during this trading session, the winnings outweighed the losses.

• It is emphasized to never terminate trades before price reaches the targets.

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