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Liquidity & structure · Lesson 12 of 20

Engulfing order block

The Alchemist material adds the engulfing order block (EF OB): the last candle before a candle that fully engulfs it. If that last candle also swept liquidity, it marks a strong reversal zone.

engulfing OBsweepengulf▲
The sweep candle takes the lows, then a bull candle engulfs it. The engulfed candle's body becomes the order block, and price returns to it.

Rules

  • Engulfing + liquidity sweep = the strongest version.
  • Entry options: the order block edge, its 50% line, or an FVG left by the engulfing move. Each gives a different entry point and stop size.
  • Use it as a lower-timeframe entry inside a higher-timeframe MSNR zone.

Check yourself

1. What makes an engulfing order block stronger?

Completion history

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Study notes in my own words, based on the MSNR "Trading Secret Algorithm" and Alchemist (White) materials. Educational only, not financial advice. Practise on a demo account and with TradingView Bar Replay before risking real money.