Order Block Trading: Combining Volume Profile
It's 7:30 AM on a Tuesday morning. Your algorithm just captured a 12-tick move on ES futures while you were still asleep. The market had tested a bearis...
It's 7:30 AM on a Tuesday morning. Your algorithm just captured a 12-tick move on ES futures while you were still asleep. The market had tested a bearish order block, confirmed by delta divergence, and the volume profile showed strong liquidity absorption at that level. You're not just lucky—you're trading with institutional intelligence. Order blocks are zones where institutional orders cluster, creating potential support or resistance. Delta divergence reveals hidden market imbalances between price movement and order flow. Volume profile charts map where liquidity pools form. When combined, these tools create a powerful framework for identifying high-probability entries in ES futures. Key fact: Institutional traders execute 70% of all futures volume, making their order flow patterns critical for retail traders to follow. (Source: CME Group, 2023) Order Block is a price zone where institutional orders cluster before a significant price move. These zones form when price consolidates before breaking in one direction, creating a "block" of unfilled orders that often act as future support or resistance.