RIMC Trading Strategy

Master the Markets with Not Just A Trade

Finding Correct Order Blocks: A Key NJAT Trading Strategy

Welcome to our comprehensive guide on finding correct order blocks, a crucial skill in the Not Just A Trade (NJAT) forex trading strategy. Understanding how to identify and utilize order blocks will significantly enhance your ability to read market dynamics and identify high-probability trading opportunities.

NJAT Order Blocks Video Tutorial

Understanding Order Blocks

  • Order blocks are representations of bank orders in the market
  • They are created within ranges where price is contained between a high and low point
  • Order blocks show the intention of market movers (banks and large institutions)
  • Identifying correct order blocks is crucial for predicting future price movements

How to Find Correct Order Blocks

  1. Identify sideways ranges in the market
  2. Look for aggressive moves (initiations) following the range
  3. Focus on the candles within the range that precede the initiation
  4. Consider the location of the order block relative to higher or lower prices
  5. Use multiple timeframe analysis to confirm the significance of the order block

The RIMC Framework for Order Blocks

NJAT trading uses the RIMC (Range, Initiation, Mitigation, Continuation) framework to identify and trade order blocks:

  • Range: Where orders are created and order blocks form
  • Initiation: Aggressive move showing the intention of the orders
  • Mitigation: Price returning to the order block, providing trading opportunities
  • Continuation: The expected move following the mitigation of the order block

Tips for Trading Order Blocks

  • Focus on order blocks at key price levels (sell high or buy low locations)
  • Consider the higher timeframe direction when assessing order blocks
  • Look for confirmation on lower timeframes before entering trades
  • Use tight stop losses based on the structure of the order block
  • Aim for high risk-to-reward ratios (e.g., 1:10) when trading order blocks

Applying Order Block Analysis in NJAT Trading

  • Use order blocks to identify potential entry points for trades
  • Combine order block analysis with other NJAT concepts like RIMC for comprehensive trade planning
  • Practice identifying order blocks on multiple timeframes to improve your market reading skills
  • Use order blocks to anticipate potential market moves and manage your risk effectively
  • Focus on high-probability setups during key trading sessions (e.g., London, New York)

Common Mistakes to Avoid in Order Block Trading

  • Mistaking every price rejection for an order block
  • Ignoring the broader market context when trading order blocks
  • Over-trading by trying to catch every potential order block
  • Neglecting proper risk management when trading order blocks
  • Failing to consider multiple timeframes in order block analysis

Suggestions for Practicing Order Block Identification

  • Regularly analyze charts to identify potential order blocks
  • Keep a trading journal to record your observations and trade outcomes
  • Use demo accounts to apply your order block analysis in real-time market conditions
  • Participate in NJAT trading floors to discuss and analyze order blocks with fellow traders
  • Review historical price action to improve your pattern recognition skills

Master Order Block Trading with NJAT

Understanding how to find and trade correct order blocks is crucial for successful forex trading. To fully master these concepts and gain access to our in-depth training and support, consider joining our comprehensive NJAT trading course.

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