Collectible card · Rare
Order block
The last opposite candle before a strong move that broke structure: the last red candle before a rally, the last green candle before a sell-off.
Why it works
Institutions build large positions there. When price comes back, they often defend the level to protect (or add to) those positions.
How to use it
Mark the candle’s high and low. Look for entries when price returns to the zone, with the stop just beyond it.
The typical mistake
Marking any candle as an order block. Without displacement and a break of structure, it is just a candle.
FAQ
What is Order block in trading?
The last opposite candle before a strong move that broke structure: the last red candle before a rally, the last green candle before a sell-off.
How do you trade Order block?
Mark the candle’s high and low. Look for entries when price returns to the zone, with the stop just beyond it.