An order block is the last opposing candle (or cluster) before a strong, structure-breaking move — an area where significant orders were likely placed. Traders use it as a zone to watch for a reaction.
Identifying a valid order block
- It precedes a clear break of market structure
- The move away is strong and often leaves an imbalance
- It aligns with higher-timeframe context
Using it responsibly
An order block is an area of interest, not an automatic entry. Wait for confirmation on your execution timeframe and always know the price that invalidates the idea. Educational only.
Risk Disclaimer: This article is for educational and informational purposes only and does not constitute investment advice. Trading involves substantial risk of loss.