Order Block strategyvsPremium/Discount Zones strategy
Order Block strategy: Retest of the last opposite candle before a Break of Structure — long bullish OBs, short bearish. · Premium/Discount Zones strategy: Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Order Block strategy
Retest of the last opposite candle before a Break of Structure — long bullish OBs, short bearish.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Indicators
- Order Block (swing length 10)
- Premium/Discount Zones (lookback 200)
Timeframes
Bias
Long & short
Long & short
Market fit
Strong directional trends
Range-bound
Entry rules
- Long on a bullish OB retest (bull_retest > 0).
- Short on a bearish OB retest.
- Long when price is inside the discount zone (current_zone = +1).
- Short when price is inside the premium zone (current_zone = -1).
Exit rules
- Position closes when the OB is mitigated (price closes through the opposite edge).
- An opposite-side OB retest also invalidates the trade.
- 4% trailing stop, 3-bar cooldown.
- Position closes when price returns to equilibrium.
- 4% trailing stop, 5-bar cooldown.
Expected behavior
Selective — OBs are sparse and retests are rarer still. The strategy spends most of the time flat and produces concentrated trades around real structure flips.
Range trader — fits balanced markets where extremes get bought / faded back to mid. Stacks losses in strong trends that camp at one extreme for many bars.
Complexity
Which one is right for you?
Derived from the bias, timeframe and indicator profile of each strategy — not a back-test forecast.
When to pick Order Block strategy
- You expect strong directional trends — the thesis is "Retest of the last opposite candle before a Break of Structure — long bullish OBs, short bearish."
- You want a long & short bot on 15m–1d candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Order Block (swing length 10)).
Retest of the last opposite candle before a Break of Structure — long bullish OBs, short bearish.
When to pick Premium/Discount Zones strategy
- You expect range-bound — the thesis is "Buy the discount extreme, fade the premium extreme, exit at equilibrium."
- You want a long & short bot on 1h–1d candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Premium/Discount Zones (lookback 200)).
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Order Block strategy
Retest of the last opposite candle before a Break of Structure — long bullish OBs, short bearish.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Related comparisons
Other pairings that involve one of these strategies.
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