**Trade Continuations Using Order Blocks — Transcript & Summary | SozAI**
Source: https://sozai.app/transcript/trade-continuations-using-order-blocks/

A trading tutorial on using order blocks, fair value gaps and sweeps of lows/highs to enter continuation trades after a confirmed reversal, with multi-timeframe examples on TradingView.

## Key Takeaways

- Missing the reversal entry is not a reason to abandon a trade; continuation entries remain available after confirmation.
- Use a fair value gap reaction or a sweep-and-close-through pattern as the two primary continuation triggers.
- Place the stop at the continuation low to improve risk-to-reward compared with the original reversal low.
- Wait for structure (higher lows or lower highs) to form rather than chasing price.
- Confirm entries with SMT across correlated assets and align with higher-timeframe bias.

## What the video covers

- The video argues that missing a reversal entry does not mean missing the move; a confirmed reversal opens continuation entries.
- Two main continuation entry types are discussed: a reaction out of a fair value gap, and a sweep of a low (or high) followed by a close through the opposing down/up-close candles.
- A new invalidation point forms after a change in the state of delivery, allowing a stop placed at the continuation low instead of the reversal low for better risk-to-reward.
- Waiting for a higher low or lower high to form lets the trader avoid chasing price after a move has started.
- Correlated assets can provide an SMT (divergence) signal that can replace the need for a sweep or fair value gap tap.
- Daily wick levels and previous day highs/lows serve as draw-on-liquidity targets, often aligned with standard deviation projections.
- Multi-timeframe analysis is used: daily bias and hourly candles frame the trade, while the 5-minute chart is used for precise entries.
- The presenter emphasizes mechanical rules but notes some situations may require discretion when no clear setup forms.
- Examples include a daily wick reversal, an NY session sweep paired with SMT, and a GBP/USD range trade on daily and monthly charts.

## Chapters

1. 00:00 Introduction to Continuation Trades
2. 01:15 Reversal Confirmation and Continuation Entry Types
3. 02:22 Sweep of a Low and Close-Through Entries
4. 03:31 Daily Wick Example and Hourly Change in State of Delivery
5. 04:32 Waiting for Points of Interest and Continuation Confirmation
6. 07:01 Shallow Retracement Example and Fair Value Gap Entries
7. 09:05 Failed Setups and Discretionary Considerations
8. 10:55 Higher Timeframe Application on GBP/USD

Answers

## Questions about this video

What should I do if I miss the initial reversal entry?

The presenter says missing the reversal does not mean being left behind; it means the reversal is confirmed and you can look for continuation entries. You can wait for structure such as a higher low to form and then enter on a fair value gap reaction or a sweep-and-close-through setup.

How is the stop loss placed for a continuation trade?

After a valid continuation trigger, the stop is placed at the new invalidation point, such as the low that was swept or the low formed during the retracement, rather than the original reversal low. This gives a tighter stop and better risk-to-reward for catching the expansion move.

What role does SMT play in these entries?

SMT, or smart money technique divergence between correlated assets, can substitute for the usual need for a sweep or fair value gap tap. If one asset sweeps a low while the correlated asset does not, the candle can still be treated as a valid opposing candle or order block for entry.

## Full Transcript — Download SRT & Markdown

00:05

Speaker A

how's it going everyone? This video is going to be over using order blocks for continuations.

00:24

Speaker A

left behind and that is simply not true that just means the reversal is confirmed and then I can look for continuation entries so how do I do that so the first thing we got to look for is the reversal so here you can see the

00:36

Speaker A

Now, if you've seen my reversal sequence video, you know how I look at reversals. Many think that if they miss the reversal entry, they are left behind, and that is simply not true. That just means the reversal is confirmed, and then I can look for continuation entries.

00:48

Speaker A

wait for more confirmation I just need to let some structure form and essentially waiting for that higher low to form now you can see here with a fair value Gap price trades back lower into a point of Interest

01:01

Speaker A

So how do I do that? The first thing we have to look for is the reversal. Here you can see the reversal sequence has formed. With the purge, we have the change in the state of delivery, so we have an invalidation at this low.

01:15

Speaker A

reversal low allowing me for better risk to reward to catch this expansion move now there are two types of entries I look for when seeking a continuation entry and that is a reaction out of a fair value gap or a sweep of a low so so

01:30

Speaker A

Now, if I miss this first entry here off the order block, or I want to wait for more confirmation, I just need to let some structure form, essentially waiting for that higher low to form. You can see here, with a fair value gap, price trades back lower into a point of interest. Then, when we get the close through the down close, or series of down close candles, into that point of interest, we have a new invalidation. Using that invalidation, I can then position myself with my stop on this low instead of the reversal low, allowing me for better risk to reward to catch this expansion move.

01:44

Speaker A

with my stop at the low and then the next way I will look to frame entries in a continuation is when we sweep out a low and then close through the series of down closed candles that swept out that

01:56

Speaker A

There are two types of entries I look for when seeking a continuation entry, and that is a reaction out of a fair value gap, or a sweep of a low. So, you can see here, as shown in the first example, when price retraces into a fair value gap, that will be used as the important level. Then, when the series of down close candles is closed through, I can look to get on side with that, with my stop at the low.

02:07

Speaker A

smt with that so you can see here with two correlated assets one sweeps out the low while the other doesn't I can then still consider this an opposing candle or an order block because it is paired with smt so let's hop into trading view

02:22

Speaker A

The next way I will look to frame entries in a continuation is when we sweep out a low and then close through the series of down close candles that swept out that low, looking to get on side with the continuation following.

02:35

Speaker A

we can use this to frame a reversal if price respects the lower half of this to trade lower you can see we fall just shy of that previous day low creating equal lows so with this we have an hourly

02:49

Speaker A

Now, the only time price does not need to sweep out a low or reach into a fair value gap is if we are using correlated assets and have an SMT with that. So you can see here, with two correlated assets, one sweeps out the low while the other doesn't. I can then still consider this an opposing candle or an order block, because it is paired with SMT.

03:04

Speaker A

look lower and we have just swept out a high still respecting the wick of this higher time frame candle now if you've seen my daily bias video you can see with closing back inside the range here on the hourly candle I can look to trade

03:18

Speaker A

So let's hop into TradingView for some examples. Here we are in our first example, and you can see on the daily chart we have had multiple days of expansion, and then we have a nice large wick here. If you've seen my wick video, you can see we can use this to frame a reversal. If price respects the lower half of this to trade lower, you can see we fall just shy of that previous day low, creating equal lows.

03:31

Speaker A

previous day low marked out there which also lines up with our standard deviation projections so you can see we have now had that change in the state of delivery so I can look to get on side with this move here now as it starts to

03:44

Speaker A

So with this, we have an hourly change in the state of delivery. Going into the next day, we come into the New York session, and we sweep out this high, which is also paired with SMT. So, all things combined, we have a bias to look lower, and we have just swept out a high, still respecting the wick of this higher time frame candle.

03:56

Speaker A

going to wait for a point of Interest which is either going to be a high high or a fair value Gap if you notice we don't have any highs in here in the area I'm looking to see respected so marking

04:07

Speaker A

Now, if you've seen my daily bias video, you can see that with closing back inside the range here on the hourly candle, I can look to trade this lower from here. So going to the 5-minute, down here on the 5-minute, I have also added my indicator so you can visualize the hourly candles. You can see our draw on liquidity, which is that previous day low marked out there, which also lines up with our standard deviation projections.

04:21

Speaker A

looking to trade the high I'm going to let the high form and then trade the continuation off of it or the order block formation so let's see if we we get a continuation you can see it does reach

04:33

Speaker A

So you can see we have now had that change in the state of delivery, so I can look to get on side with this move here. Now, as it starts to trade lower here, I might think that I've missed the move, when in reality that is not the case. All I have to do is wait for a new order block to form, right? So instead of trying to chase this, I'm just going to wait for a point of interest, which is either going to be a high, or a fair value gap.

04:46

Speaker A

value gaps as we did tag this one and wait for a closure through we have yet to get the closure through so I'm just waiting now if this is paired with smt I can also consider this level here but

05:06

Speaker A

If you notice, we don't have any highs in here, in the area I'm looking to see respected. So marking out these fair value gaps here, there's one, there's one, and even one above. How do I know which one to look for? The reality is I don't need to know which one forms the high, because I'm not looking to trade the high. I'm going to let the high form and then trade the continuation off of it, or the order block formation.

05:22

Speaker A

out there we go we open a new candle we trade a bit higher here now if we're going to get a continuation lower here where do we want to see a closure below this level here that would now

05:36

Speaker A

So let's see if we get a continuation. You can see it does reach up all the way into that last one. I'm not interested in trying to take a position until I see what occurs. We get a closure through the series of up close candles into an important level. So to clean things up, I can remove those fair value gaps, as we did tag this one, and wait for a closure through. We have yet to get the closure through, so I'm just waiting. Now, if this is paired with SMT, I can also consider this level here, but without SMT I'm still using this level.

05:52

Speaker A

looking for order blocks to form or for price to reach into an important level and then close through the series of up close candles that did that to me this is a higher probability entry as this High has already been confirmed and I'm

06:05

Speaker A

Now with the closure through, I can look to get on side with that position, my stop on that high, and then looking for that previous day low. So let's see how this works out. There we go, we open a new candle, we trade a bit higher here. Now, if we're going to get a continuation lower here, where do we want to see a closure below this level? That would now validate a new high. And there we go, we take out that previous day low, our target.

06:19

Speaker A

this is going to get a continuation we'd want to see a shallow retracement to continue higher so you can see we are getting a shallow retracement these are not aggressive candles showing a reversal we retrace into a fair value

06:33

Speaker A

So just to review, I don't need to capture the initial move here. I can wait for these continuation entries, which I'm looking for, order blocks to form, or for price to reach into an important level, and then close through the series of up close candles that did that to me. This is a higher probability entry, as this high has already been confirmed, and I'm not trying to get the low-risk sell, but instead the first or second stage of distribution.

06:46

Speaker A

4-Hour candle and we sweep out the low here so if we are going to reverse off this previous candle and expand higher I'd want to see a change in the state of delivery or that reversal sequence so you can see we are forming

07:01

Speaker A

So let's get into another example. Here we are in our next example, and you can see we have had a nice expansion on the previous day. So if this is going to get a continuation, we'd want to see a shallow retracement to continue higher. You can see we are getting a shallow retracement. These are not aggressive candles showing a reversal. We retrace into a fair value gap here with a small little tag.

07:20

Speaker A

in the state of delivery so this would be the first reversal entry however if I want more confirmation or if I miss that and I want to wait for a continuation I'm just going to wait for an important

07:32

Speaker A

So let's drop down to a lower time frame. Since we were using the 4-hour chart, we'll hop down to the 15-minute time frame. You can see here we open a new 4-hour candle, and we sweep out the low here. So if we are going to reverse off this previous candle and expand higher, I'd want to see a change in the state of delivery, or that reversal sequence. You can see we are forming down close candles here, and one thing to note is you notice how this is also the same as the opening price, that sometimes occurs.

07:47

Speaker A

through this down close candle we can then look to get on side with the move higher and that's fine if it digs a little bit deeper just want to wait for the closure over that and there we get the closure over it so

08:02

Speaker A

You can see we get another little sweep here of those lower time frame equal lows, and now we have that change in the state of delivery. So this would be the first reversal entry. However, if I want more confirmation, or if I miss that and I want to wait for a continuation, I'm just going to wait for an important level, and then for price to form an opposing candle.

08:16

Speaker A

a retest of this order block we now have another down close candle into an important level so this low should then be respected which you can see it retests it is respected and then we trade higher hitting this previous high and 2 r or

08:33

Speaker A

So you can see here we have a fair value gap that price is reaching back into, and now we have a down close candle into it. So if we close through this down close candle, we can then look to get on side with the move higher. That's fine if it digs a little bit deeper, I just want to wait for the closure over that, and there we get the closure over it.

08:47

Speaker A

then using the continuations following this to get on the side with the move and what I am doing is I'm actually allowing all the time frames to align in one direction to have expansion occur so let's get into another example example

09:01

Speaker A

So now, if I was going to get on side with this, I could take an entry, my stop on this low, and looking for 2R or that high there. So as we let this continue, you can see it retests. Now with a retest of this order block, we now have another down close candle into an important level, so this low should then be respected. Which you can see it retests, it is respected, and then we trade higher, hitting this previous high and 2R, completing the 15-minute Market Maker Buy Model.

09:11

Speaker A

state of delivery now one thing I'll talk about with projections here is when you have a very large manipulation move and the projections do not make sense within the range that is when I generally will look to Target than ne1

09:25

Speaker A

So just to review, the 4-hour fair value gap is our important level. I let the change in the state of delivery occur, not looking to get on side with it, or if I just miss it, then use the continuations following this to get on the side with the move. And what I am doing is actually allowing all the t

09:40

Speaker A

start to trade lower and in this case I don't really trust this High generally to stay intact so I can just wait and that is more of a convincing run we get this move higher and then an aggressive

09:53

Speaker A

displacement lower you can see we fall just shy of that previous day low and we have now this series of up closed candles into an important level what is that important level it is sweeping out that high to the left and so then now I

10:08

Speaker A

could look to get on side with this move now in the case that we have such an aggressive displacement doesn't really make sense for my final Target or my first Target to enter on the market with my stop on the high and that is when I

10:21

Speaker A

will look for a retest entry there so let's see what happens we get tagged in we then get another closure below so I would not want to see this High get hit or this gives me another entry and let's see

10:37

Speaker A

what happens and there we get the continuation lower so just to review we have the change in the state of delivery we have that reversal and then I can look for a continuation entry by looking for price to trade into a fair value Gap

10:51

Speaker A

or sweep out a high and then look for the order block that forms there now let's get into another example so here we are with our next example and you can see we have a consolidation range here in this consolidation range we have

11:05

Speaker A

swept out the low and we have a nice aggressive move lower and then back into the range as well as closing inside the previous candle so with this I can be looking to trade back into the range or

11:17

Speaker A

higher so I'll go from my hourly chart down to my 5 minute chart using my time frame alignment and you can see here this is one where I may catch the reversal candle however if I don't is there a continuation entry so here I

11:33

Speaker A

want to talk about one thing if I'm looking for a low to get swept out or a fair value Gap to get wretch into to form a valid opposing candle or order block I need that in this area here

11:45

Speaker A

which I do not have so that either means that I do not get a setup until we form some more structure that I can trade off of or I can be more discretionary with it but mechanically speaking there is

11:57

Speaker A

nothing here for me yet so as we start to trade higher we get this expansion away which makes me think we do not come back to revisit this low and if we continue to trade away without sweeping out any lows or reaching back into a

12:11

Speaker A

fair value Gap this is just a move that I am going to miss so you can see here we do sweep out some lows but we don't sweep out this low yet so let's see if we do we don't and we just trade this

12:28

Speaker A

higher so this is an example example of a move that kind of grinds up and it's not one that I would be able to participate in because mechanically how I Define my order blocks to form there are no opportunities in here so let's

12:41

Speaker A

get into another example so here we are with our next example and you can see we have taken out this side of the range closed back in so I'd be looking for a continuation lower in this day now you can see we

12:54

Speaker A

just kind of open and fall off so not wanting to chase I'm going to let a lower high form or look for some structure now reaching back into this fair value Gap here and then forming a nice closure here I could anticipate

13:11

Speaker A

price to reverse here and I can look on the lower time frame what I'm anticipating is the formation of these opposing candles or a continuation on this time frame so let's go down to the 5 minute so down here on the 5 minute you

13:25

Speaker A

can see we have this reversal here it is a bit messy so if I don't want to catch the reversal I can let some more structure form and look for a continuation see a bit messy here I'd want to see a high taken out and then

13:40

Speaker A

this is the first possible entry for a continuation as it has wretched into an important level swept out a high closed below the up Clos candles in this case it's a singular one so I could look to get on side with this move here

13:56

Speaker A

targeting the lows let's see what happens that is the first possible entry now let's see if there's more continuations that follow this now some will consider this a continuation candle if we get closure below this now I do not because

14:12

Speaker A

I needed to reach into a fair value Gap or sweep out a high and it fell short of this fair value G here let's see we do get the closure blow it I don't consider it now I'd be looking for another

14:26

Speaker A

continuation if I don't think I am chasing it as I have further Downs side objectives here we're anticipating a continuation in this candle here we have price reach up into a fair value Gap that is meeting our requirements and

14:41

Speaker A

then price closes through the up close candles into that area so if I wanted a later continuation this could be an attempt let's see if we can get to R out of this and you can see another continuation entry here

15:00

Speaker A

and there we go we get two R now obviously I prefer the entries before our short-term targets are taking out but I hope you can see that when price is trending it's going to respect up Clos candles or if it is trending higher

15:13

Speaker A

down close candles so let's get into one more example now in our last example here I want to go to the higher time frames just like most Concepts shown on this channel it is fractal so what we were

15:25

Speaker A

applying on the lower time frames we can also do on the higher time frames so here we are on The Daily and monthly chart of gpp USD we are trading within a range and you can see we have equal

15:37

Speaker A

highs up here we have swept out the low of the range and if you know my reversal sequence video we have this purge or the turtle soup we have an inversion and then we have the change in the state of

15:48

Speaker A

delivery and if you don't know what I'm talking about check out that video but this would be the reversal now if I expect this to hold we'd want to see a continuation let's see if anything is offered so here we get that displacement

16:03

Speaker A

higher we reach back into this fair value Gap here we have down closed candles so if we close over these series of down closed candles into an important level that would form a new opposing candle or order block and there we do

16:19

Speaker A

get that closure so now I don't anticipate this low to be hit let's see if we get another continuation can see we retest that opposing candle and one thing I will consider are volume and balances as another Gap or an

16:35

Speaker A

important level when paired with something like reaching into another opposing candle so now as we trade this higher and as we let this play out you can see we go and take the other side of the range so you can see I don't need to

16:53

Speaker A

catch the very first entry to still have a directional bias or get on side with a move higher now I hope you enjoyed this video if you did learn something please consider liking and subscribing and I'll see you

17:05

Speaker A

guys in the next one have a good one

Topics: order blocks continuation trading fair value gap smart money concepts SMT divergence liquidity sweep change in state of delivery TradingView price action risk to reward

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