BLOCK OF

ORDERS
PRECISION TRADING
BRYAN LÓPEZ ARAYA
Educator
BRYAN
LOPEZ

ORDER BLOCK THEORY

An Order Block or Institutional Blocks Order Block is a
set of purchase or sale orders, as the case may be, placed
by an institutional (large institution) to make the price
reverse and push strongly in the direction of the trend.
The Order Block is a specific price level, it is a candle
specific The usefulness of this concept is to provide you with input
high precision, an Order Block provides you with information about
where there is a high probability of price reversal, it is a
technique to take pullbacks in trend, with high precision of
entry, allowing you low-risk, high-profit entries,
R%R ratio.
BRYAN
LOPEZ
AND WHAT IS IT
HAPPENS WITH THE
ORDER
BLOCKS?
There are two tips of Order Blocks, the
Bullish
Blocks and the Bearish
Blocks.
First of all, they must know concepts
basics of currencies, so we will go through
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LOPEZ
its Japanese candle principles
They will be the heart of the blocks.
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LOPEZ

Opening Every Japanese candle has 3 very important parts that must be
identified.
1 .Opening
2 .Half
3 .Closing
This is found in any time frame.

Closin
g
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LOPEZ

TREND
DEFINE YOUR
The idea is the following, when the price makes a
movement against the trend (you must have the idea that
the price will follow its trend and that this movement is a
(pullback), when this retracement occurs, you know That
there is a point that is an optimal entry point is an area of high probability of rebound, more
than high, practically assured, assured is as long as you have a certain idea that the price will
continue in its trend.
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LOPEZ
BRYAN
LOPEZ

Define your trend

This is a price manipulation or control technique.
Institutionals sell when the market rises and buy when the
market falls, this is their way of working, it is out of pure
common sense, because their accounts are so large that they
would make the price move suddenly in one direction, losing
attractive prices.
So, they see that the currency has to go down, and what they
do is sell when there is an upward rally, there comes a point
where they have decided to sell out, that is where the Order
Block is, a block of orders. The institutions, purposely put in
place to make the price push in the direction they want it to go,
because for fundamental reasons they know the corresponding
price (intrinsic value that is).
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LOPEZ
Bearish Order Block
Bearish Order Block. A BeOB is specifically a bullish candle prior to a move.
bass guitarist. The BOB is a series of bearish (sell) orders placed by institutions according to the
price was rising (institutionals sell when the market rises). The reactions of
price we will look for them in the Open block or half of the block
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LOPEZ
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LOPEZ
Bullish Order Block
A BuOB is specifically a bearish candle prior to a
bullish movement. The BOB is a series of bullish orders
(purchases) made by institutions according to the price
falling (institutionals buy when the market falls).
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LOPEZ
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LOPEZ
BLOCK CHARACTERISTICS
- The larger timeframe order flow is crucial to identify high probability ICT Order Block for trading. What
do you mean by this, do you mean the Directional Premise or what.
1
—___________:_________' -1_____L. : ' Yo______x:£:__________im'____________.I - AI _2 A _ 1 I
It is very important to identify the Current Trading Range
- The Order Block will be in or near a zone where there is a set of stop loss orders, which will be near a
minimum or maximum
- Stops are above a Bullish Order Block, below or near a Swing Low. This is the reason why the price
does not go beyond 50% of the Order Block candle.
- Every time the price makes a continuous and followed movement it is the work of the institutional ones,
if you see a

smooth movement without ups and downs and that lasts about 40 pips at least, that is a movement
printed by the
institutional. Always look at the strong movements of the bigger timeframe that is where you will find the
good trades.
- What we want to see is that the price returns to at least the Low, the low of the previous candle (bullish
candle).

to the downward movement, the Low is the lower wick, that candle is the Bearish Order Block and that
is where they liquidate their positions with losses.
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LOPEZ
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LOPEZ
BLOCK CHARACTERISTICS
If you went to larger timeframes it would be clear that this is the beginning of the candle (being on a small timeframe you can see
several candles). The institutional ones sell in that rise, but the thing is, if they accumulate above, (on the left part of the graph, the
range, which part is not seen), and then choose price levels (Institutional Pricing) to sell, the point of the Order Block, why do they
let the price rise to the Order Block (as seen in the image, then the price reaches right up to the blue zone). The theory is that they
first accumulate and then place large packages of orders to move the price (Order Blocks), but why let the price rise, why not
continue placing more orders to prevent the Profit Release phase from being ruined. The Profit Release phase is a long and
Continuous movement, the continuous thing is key, because that calls the Retail Traders (Dumb Money) to chase the price, just
what the institutional ones want, which will later help them to undo their positions with the liquidity of the Retail Traders, and thus
they benefit. To make this deception, continuous movement is key. Why let the price return to the Order Block, spoiling the
continued movement. The reason why after a movement, the price then retests in Order Block is because demand appears,
demand that does not come from the same Institutional Banks that are orchestrating the 65 cycle.
Accumulation Distribution or Sales Program (Sell Model), since they have seen that the demand was very strong, what they now do
is not prevent the price from rising, the demand is very strong and if they force it to stop, they are selling their positions for prices
less attractive than if they let the price rise, and once it rises they sell at more attractive prices. To understand it, put yourself in
their place, like us, they want to make a profit, sell at the most attractive prices possible. The reason why the price retests previous
Order Blocks is because in the middle of the Profit Release Phase, demand appeared that was not foreseen. In view of this,
because the demand is high, they let that demand develop. Now one of 2 things will happen, one, or that the price rises and runs
out of power, before touching the Order Block, when it runs out of power, the Institutionals will return to the fray with sales
packages, and another Order Block will be established there . The second thing that can happen is that the price has enough
strength to reach the Order Block, in that case, that is where the price will reserve because the Institutionals put a large number of
orders there, they cannot let the price go beyond there, because that would cause them to have a huge number of losing orders. A
crucial thing in this is to have an accurate idea of where the price is going in the Macro Perspective, because if you believe that the
price should go down, your expectation will be that the price will stop at a previous Order Block, and then it does not stop because
the true direction was not downward but upward
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LOPEZ
Why the levels to choose to define the
Order Block are the body of the candle?

Large funds have software called interbank algorithm, this robot very accurately detects their
operations at these prices. Provide us with high precision inputs, in the context of the
Pullback setup in trend. The concept of Order Block and knowing how to identify them
provides you with high precision entries, and with practice you can learn to take only those
high probability trades, which provide you with the best risk ratio. reward. Order Blocks
provide you with high probability entries of what are trend pullbacks, that simple and classic
setup of waiting for a price decline and entering in favor of the trend, knowing at what
precise level to expect the price. Therefore look for trending markets, there you will find
Order Blocks
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LOPEZ
SEARCH ORDER BLOCKS IN MARKETS IN
TREND
- In bearish markets, in downtrend you will find Bearish Order Blocks, and in uptrends you will find Bullish Order
Blocks. That is truly a key. What is the context in which we should look for Order Blocks? In trends. Look for a trend,
you see it clearly, or you foresee that a certain trend, barely visible, you foresee that the price there will continue
creating more trend, there you look to see Order Blocks, there the
you'll find.

- Look for the price to make an intermediate low. You will often see the following pattern, the price makes a
movement, then reverses, and there it seems that it “continues its trend”, but that is just to make it believe that it
follows the trend, causing the Many retail traders put their stops below that minimum (red line in the drawing),
now the price goes back down, breaks all those stops, and achieves a lot of liquidity, this type of pattern occurs
often, it is a form manipulation to absorb liquidity.
- What do you have to look for, look for the Swing Low pattern, a low (which is the intermediate low) and it is in the
form of a pattern of 5 candles in the shape of a tip, a candle and all around it higher? That pattern of 5 candles, in
the shape of a tip, is key, because it is taken by many retail traders as a holy word for reversal.
 BRYAN

Details about Order Blocks

LOPEZ

It is important that you know that Order Blocks do not always work, like all trading theory. In this
image Michael states that this is the Order Block, the area marked in red
BRYAN
WHAT IS THE BASIS FOR DEFINING THAT AS THE
LOPEZ
ORDER BLOCK, DOES IT HAVE ANY FIXED
- OBJECTIVE RULES?
• I see that the Order Block could be this, it even makes more sense, because the price does not exceed
50%, a characteristic of Order Blocks
• The reason why you anticipate a rebound right in that area is because by looking at the Order Block you
assess that now the same institutional ones will sell again in that area, which is where they sold before.
• I see that it does not necessarily have to be that, it could be a Loss Mitigation, at that level people
bought, and those losses were mitigated, the positions were closed with practically 0 losses, at
breakeven, when the price rose again.
• On the other hand, if the price had risen to make a double top, its interpretation would have changed,
which invalidates the forecast. For a theory of prediction of events to be valid, it must issue the same
forecast based on the same signals, not change the forecast based on what happens after the event. If
the price had made a double top, one of two, if I had anticipated that the Order Block would stop the
price, then I would have seen that it failed, and if I had evaluated the situation after the fact, I would not
have said that there was an Order Block there . Don't get obsessed with timing, focus more on doing
research and finding out the condition of the fundamentals, where the price is going in the long term.
That's where you will really benefit.
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LOPEZ
ENTRIES WITH FRACTAL BREAK
To define a highly effective block it is clear that we must expect breakdown of
some fractal I mean the error of one of the rules of trends.
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LOPEZ
ENTRIES WITH FRACTAL BREAK
We can define this failure in smaller temporalities, for example
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LOPEZ
BRYAN
LOPEZ

RE- CAPITALIZATION
It must be taken into account that each impulsive movement has its
recapitalization and what is this?
This impulse must be filled, and most likely it will reach the order block at least
once.
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LOPEZ
INSTITUTIONAL ORDER BLOCK AND
MITIGATION
BLOCKS
Retail price action is dominated, controlled, manipulated by large
financial institutions. Always before doing an analysis of the price action
we have to ask ourselves who benefited from that movement, and who
will benefit from the price continuing to rise.
These teachings will teach you how financial markets work in an
incredible level of detail and precision, and you will discover with
surprise the effectiveness of these techniques.
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LOPEZ
Important concepts in the Theory
by Institutional Order Blocks
Liquidity Pools

Areas in which there are many stop losses, above previous highs and
previous lows.
The phenomenon of Run of Stops, and getting new liquidity. Institutionals
will always catch previous highs and lows in a trend to capture liquidity.
Always think that the previous highs and lows will be broken, as part of the
liquidity-seeking maneuvers
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LOPEZ

Injecting Liquidity (Juda Swing)

Regarding how institutional entities inject liquidity, it is something that institutional entities
achieve through the Juda Swing, the sudden and initial movement, in the wrong direction,
to cause many traders to open positions, and then the institutional entities go to look for
their stops.
The explanations that this guy gives are of the type “many times this happens”, and “many
times this happens”, of course, those are abstract concepts, “many times”, for that what I
have to do is do a backtest, and discovering in a specific asset, how many times a specific
setup is fulfilled, with what characteristics, that would give me a good idea to predict the
price. The backtest is key.
USEFUL KNOWLEDGE. Whenever you see a strong and sudden price swing, you know that
many retail traders will be jumping on the movement (chasing the price) and that creates a
good incentive for institutional traders to reverse and capture all that liquidity.
ANOTHER USEFUL CONCEPT. Another of the most useful concepts is the trap pattern, such
as going to obtain liquidity above a previous maximum, there are many stops there.
Especially those areas in which there are a series of maximum peaks at a very clean level,
that is taken by traders as a clear resistance level, and they will go there to take advantage.
 BRYAN
LOPEZ

Injecting Liquidity (Juda Swing)

Regarding how institutional entities inject liquidity, it is something that institutional
entities achieve through the Juda Swing, the sudden and initial movement, in the wrong
direction, to cause many traders to open positions, and then the institutional entities go
to look for their stops.
The explanations that this guy gives are of the type “many times this happens”, and
“many times this happens”, of course, those are abstract concepts, “many times”, for that
what I have to do is do a backtest, and discovering in a specific asset, how many times a
specific setup is fulfilled, with what characteristics, that would give me a good idea to
predict the price. The backtest is key.
USEFUL KNOWLEDGE. Whenever you see a strong and sudden price swing, you know that
many retail traders will be jumping on the movement (chasing the price) and that creates
a good incentive for institutional traders to reverse and capture all that liquidity.
ANOTHER USEFUL CONCEPT. Another of the most useful concepts is the trap pattern, such
as going to obtain liquidity above a previous maximum, there are many stops there.
Especially those areas in which there are a series of maximum peaks at a very clean level,
that is taken by traders as a clear resistance level, and they will go there to take
advantage.
BRYAN
LOPEZ

Institutional Pricing
What is Institutional Pricing? What is Institutional Pricing? What is this
concept for? About how institutionals choose a price level where they will
reverse the price, close to a relevant double 00 or triple 000 level. They
accumulate before the price reaches the level, by the time it has arrived
they have accumulated their orders, and they manipulate the price making
it move quickly, thus they manage to scare, trap stops, trigger pending
orders and encourage retail traders to get carried away. emotionality. And
what the institutional ones achieve in this way is to hunt for liquidity.
What Michael calls Institutional Pricing is a price zone that institutional
choose to make a reversal, and that is around a round number, for
example, they choose 1.5000 to make a reversal.
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LOPEZ
And what they do is that at that level they place a huge number of orders, the price fell
from 1.26, and what they now do before reaching 1.5000, above 1.540, -1.520, they
create an accumulation range, then they go down to burn stops outside the range, until
they reach the selected level, for example 1.5000, and there they place many purchase
orders to reverse the price. It is a specific price level that institutions select to reverse.

A signal in which you can visually see signs that this is a level selected by the
institutional ones is to see that the closing of the candles is several candles at the
same level.
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LOPEZ
The Central Bank Dealers Range (Technical
input based on Asia Range)
What you simply have to do is create a box framing the Asia Range, and replicate 2 or 3
times up and down, and the price will not go more than 2 or 3 times the Asia Range.
This is as a general rule, there will be days that it moves 5 times the Towards range,
other days it moves only 2 times the Asia range, and most days it will move only 2 or 3
times.
What is the use of knowing that the price will not go more than 2 or 3 times the Asia
Range? It is to know that if it is 3 times as far away, as in the image, at the lower end of
the box, there you have a greater probability of the price rebounding. The usefulness of
this concept is that it is a market entry technique, to make more precise entries.
This is a very precise technique. You just have to clearly identify the Range. Typically 3
times the range (3 boxes is the maximum). Remember, there will be days that it won't
happen, but generally, most days it will.
CanadianJapanese Yen 15 OANDA
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LOPEZ

Breaker Block
You have a previous resistance
The basic idea behind Order Blocks is that every time there is a movement, up or down, the candle prior to that
movement, there is an Order Block.
When double touch patterns such as double top, failure or trap, extreme patterns occur, in the second swing,
that movement is to catch stops, the downward candle prior to the upward movement there is the Bullish Order
Block, purchase orders for direct the price upward. When the price rises they try to liquidate all the orders they
can by hitting the stops, then they will try to liquidate more later as the price falls, but if they have orders left to
liquidate, those orders will be in losses with the price below and now they will wait for the market to direct the
price upwards, with them pushing it upwards as well, and then when the price reaches the Order Block area,
right there they liquidate all those positions they had with losses.
What is the difference between a Mitigation Block and a Breaker? Breakers are movements that break stoploss,
they are seen when there is a high or a low in the market that has been broken. What is this concept for, and
how can we contextualize it so that the concept is useful and used intelligently. Concepts poorly explained,
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LOPEZ

useless, useless, do not explain things well

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LOPEZ

Mitigation Blocks
It is a price level where there was an Order Block and
it failed, the marketmakers return to the zone to
liquidate their losing positions
A Mitigation Block is a previous Order Block where
institutional investors had losses, and closed their
positions with losses at breakeven.
The same reason that when the price crosses a level
then stops returning towards it, the Pushing Up
through Supply maneuver guarantees that those
orders will go from being in losses to being in profit,
thus reducing the Selling pressure that slows the
price. price, and then above all slow, it gives those
traders who had losing positions time to assimilate
the situation to close them, now acting as resistance,
thus preventing the price from falling
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LOPEZ

STRONG REVERSE
SETUP 1
PER WEEK
This setup only happens 1 time per
week, it is the reverse of the week
It is the entrance with breakers, a lot
eye on the structure
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LOPEZ

Directionality with
indicators

Without being such a lover of

indicators we can
find a confluence
more to make decisions.
In this case I mention 2
moving averages
sessions of this server.
Using them as
Potential areas of
dynamic reversal, in Tf
minors in OB.
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LOPEZ
BRYAN
LOPEZ

CONCLUSION
Precision trading will definitely help us with many facets of mentality, the most
difficult for many in trading is holding orders with negative drawdown.
This course will make your majority of trading direct to profits.
I also want to make it clear that the magic formula is useless if you are not willing to
work on it, so backtesting is the most important thing in any strategy.

of successful trading, while you see the charts your brain unconsciously stores photos
of the market. I promise you that in the future when you see your graphs you will say:
I have already seen this. That's where you will make better decisions.
If you liked this edition let me know.
Remember: YOU will be the guide for future traders in need of knowledge.
Bryan Lopez
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LOPEZ

VOLUME II WITH ERROR

• There is a lot of informed trading, and a lot of precision to achieve, so
look forward to volume II, you will find the secret of the banks, high value
gaps, exposed liquidity grabs and liquidity verification.
• Take advantage of this information and get the most out of your trading,
remember that everything is in our live sessions, connect and let's beat
the market.
BRYAN
LOPEZ

THE PRICE OF BEDIFFERENT

“I remind you that it is more important to be willing than
be prepared, you can be very prepared, but
not willing to do what it takes to get your
dreams. Pure self sabotage. I don't have money, I don't have
talent, I don't have time, I'm in trouble, my boss is a
idiot, my parents don't support me, society is on me
con, no one helps me, I have no contacts, I don't have any,
I do not have I do not have...
“If you have nothing, then you have nothing to lose.”
“Adversity has the gift of awakening talents that
in comfort they were asleep”… Daniel Habif