Order Blocks Explained
An order block is the last opposing candle before a strong, impulsive move — the last down candle before a big rally (a bullish order block), or the last up candle before a big drop (a bearish order block). It marks the area where large players loaded up their positions, so when price returns to that zone, it often reacts. Order blocks give you precise, logical spots to enter with tight risk.
How to identify an order block
- Find a strong, impulsive move that breaks structure.
- Look back to the last candle in the opposite direction right before that move.
- That candle's range is your order block zone.
- The best order blocks often sit right at a liquidity sweep and pair with an FVG.
Bullish vs. bearish order blocks
A bullish order block is the last down-candle before a rally — it acts as support on a pullback. A bearish order block is the last up-candle before a sell-off — it acts as resistance on a bounce. Higher-timeframe order blocks carry more weight than lower-timeframe ones.
How to trade order blocks
The classic play: wait for price to return to the order block, then look for a reaction (a rejection wick, a shift in short-term structure, or an FVG forming). Enter in the direction of the original impulse, place your stop just beyond the block, and target the next liquidity level or opposing order block. It's clean because your invalidation is obvious — if price closes through the block, you're wrong and you're out small.
Order blocks turn "somewhere around here" into "exactly here, with a defined risk." That precision is the edge.
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What is an order block?
The last opposing candle before a strong move — a zone where big orders were placed, which price often reacts to when it returns.
Do order blocks always hold?
No. They're high-probability zones, not guarantees. Combine them with liquidity, structure, and strict risk management.
Educational content only, not financial advice. Trading futures carries substantial risk of loss.