Trading
Order Block
The last opposite candle before a strong impulsive move.
Full Definition
An order block is a smart money concept representing the last bullish candle before a bearish move (bearish OB) or the last bearish candle before a bullish move (bullish OB). These zones are believed to mark areas where institutions placed large orders. Price often returns to these zones, offering entry opportunities.
Example
Before a strong rally, there's a small red candle at 1.1000. When price later returns to this bullish order block zone, it bounces and continues higher.
Related Terms
Apply Your Knowledge
Put this concept into practice with our free trading tools.