Order blocks mark the zones where institutions placed large orders before a strong move. Learning to identify them lets retail traders anticipate where price is likely to react. This guide covers everything you need.
What Is an Order Block?
An order block is the last opposing candle before a strong, impulsive move — the footprint of institutions accumulating positions. These zones often act as support or resistance when price returns to them.
Bullish vs Bearish Order Blocks
A bullish order block is the last down candle before a strong rally; a bearish order block is the last up candle before a sharp drop. Price frequently revisits these zones to fill remaining institutional orders.
How to Trade Order Blocks
Wait for price to return to an untested order block that aligns with market structure and order flow, then look for a reaction and confirmation before entering. Combine with FVGs and liquidity to filter the strongest setups.
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