What is an Order Block in Trading?
An Order Block is a price zone where big institutions or banks placed large orders to buy or sell an asset. These blocks usually act as strong supply or demand zones and can predict powerful market reversals.
✅ Simple Definition:
An order block is the last bullish or bearish candle before a big move in the opposite direction.
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Bullish Order Block = Last bearish candle before a strong upmove
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Bearish Order Block = Last bullish candle before a strong downmove
🔍 Why Are They Important?
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Institutions (smart money) can't place huge orders in one go.
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They split their positions and use order blocks to enter quietly.
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Retail traders can use these blocks to trade with the "big money."
📉 How to Identify Order Blocks?
🔹 Step-by-step:
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Look for a strong impulsive move (up or down).
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Identify the last opposite candle before that move.
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Mark the full body and wick of that candle.
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Wait for price to retest this zone → then enter trade.
💡 Pro Tip:
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Combine order blocks with volume spike and candlestick confirmation.
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Best seen on 1H, 4H, or Daily timeframes.
Want a TradingView indicator or chart template to auto-detect order blocks? Just say "Yes, send it!" 🧠📊