1. Order Block + Liquidity
A liquidity sweep, a strong move that breaks structure, then an entry from the order block.
2.What it is
Price takes the liquidity resting under obvious lows (or above highs), then displaces strongly in the other direction and breaks a swing. The last opposite candle before that move is the order block. This strategy waits for price to return to that block and enters with the stop beyond the sweep.
In simple words
First price grabs the stops under an obvious low. Then it shoots up fast and breaks above a recent high. The last red candle before that jump is our zone. When price comes back to it, we plan to buy with the stop below the lowest point.
3.Why it may work
The sweep removes resting orders, the displacement shows aggressive participation, and the block marks where that participation began. A return to the block can offer a good price with a clear invalidation. As with all order-flow stories, it is an interpretation and many blocks fail.
4.Best market conditions
- Obvious liquidity (equal lows or a clean swing low) that gets swept
- A strong displacement that breaks structure after the sweep
- A fresh, untested block
- The higher-timeframe bias agrees
5.When NOT to trade it
- The displacement is weak or does not break structure
- The block has been retested already
- The stop would have to be very wide
- You are trading against the higher-timeframe trend
6.Timeframes
Entry: 15M, 5M · Context: 1H, 4H
Spot the sequence on the 15M chart; refine the entry on the 5M chart.
7.Entry rules and step-by-step setup
Entry rules
- Liquidity was swept
- A displacement broke structure
- Price returns to the fresh block and reacts
Step by step
- 1.Mark obvious lows or highs that hold liquidity
- 2.Wait for a sweep of one of them
- 3.Confirm a strong move away that breaks structure
- 4.Mark the last opposite candle before the move as the block
- 5.Wait for a pullback into the block (untested)
- 6.Enter on a reaction, with the stop beyond the sweep extreme
8.Stop loss
Beyond the extreme of the sweep (below the sweep low for a buy). If it is taken out, the sequence has failed.
9.Take profit
The next liquidity pool or structure high, or a fixed 2R.
10.Risk / reward
At least 1:2. The block is small, and the stop beyond the sweep is the main driver of the ratio, so check it before entering.
11.Confirmation
- A reaction candle inside the block
- A lower-timeframe structure shift after the touch
- A fair value gap left by the displacement
12.Invalidation
- A close below the block and the sweep low
- A second sweep beyond the first extreme
13.Common mistakes
- Marking the block without a sweep or a structure break
- Entering at the first touch without confirmation
- Using tired, repeatedly tested blocks
- Placing the stop at the block edge only
14.Example chart
How it performed in our own backtests
TESTINGBacktested on 670 trades but not verified: 5 of 9 checks not met (win rate above 50%; profit factor at least).
- Win rate
- 34%
- Sample size
- 670 trades
- Average planned RR
- 1:2
- Profit factor
- 0.92
- Worst max drawdown
- 21.6%
- Average per trade
- -0.057R
- Tested timeframes
- 15m, 30m, 5m
- Tested markets
- BTCUSDT, ETHUSDT, SOLUSDT
Period 2026-03-09 to 2026-10-03 · OKX spot candles (real exchange history, closed candles only) · engine bahari-bt-1.0.0 · run on 2026-10-03 · 1% risk per trade, 0.05R extra cost per trade plus spread · one position at a time, ambiguous candles resolved stop-first · parameters fixed before running.
Supply/demand zone (order block) after a liquidity sweep, engulfing reaction, stop beyond the zone, 1:2 target.
VERIFIED checklist
- ✔Sample size of at least 300 trades(670 trades)
- ✘Win rate above 50%(34%)
- ✘Profit factor at least 1.2(0.92)
- ✘Average result per trade above 0.05R after costs(-0.057R)
- ✔Worst max drawdown at most 25%(21.6%)
- ✔Average planned reward:risk at least 1:1(1:2)
- ✔Tested in at least 4 market/timeframe conditions (2+ markets, 2+ timeframes)(9 conditions, 3 markets, 3 timeframes)
- ✘Profitable in at least 67% of the conditions(3 of 9)
- ✘Profitable in BOTH halves of the history (profit factor at least 1 in each)(first 0.8, second 1.02)
Results per market and timeframe (9 runs)
| Market | TF | Trades | Win rate | Total R | Max DD |
|---|---|---|---|---|---|
| BTCUSDT | 15m | 67 | 26.9% | -18.6 | 21.59% |
| BTCUSDT | 5m | 79 | 32.9% | -10.8 | 14.23% |
| BTCUSDT | 30m | 75 | 30.7% | -10.8 | 18.21% |
| ETHUSDT | 15m | 59 | 35.6% | 0.3 | 14.1% |
| ETHUSDT | 5m | 65 | 33.8% | -4.5 | 17.97% |
| ETHUSDT | 30m | 81 | 42% | 16.0 | 7.48% |
| SOLUSDT | 15m | 77 | 36.4% | 2.1 | 11.88% |
| SOLUSDT | 5m | 83 | 33.7% | -7.1 | 15.82% |
| SOLUSDT | 30m | 84 | 33.3% | -5.0 | 11.8% |
Reading this honestly: VERIFIED needs 300+ trades, a win rate above 50%, profit factor 1.2+, drawdown under 25%, profit in at least two thirds of the conditions and in both halves of the history. A strategy that fails here can still be worth learning, but do not risk money on it before testing it yourself in the Strategy Lab.
Past and backtested results never guarantee future results. Nothing on this page is financial advice.
15.Quiz
16.Practical challenge
Walk the sequence (sweep, displacement, block) on a hidden-future chart before choosing BUY, SELL or WAIT.