In trading, OB zone stands for Order Block zone.

An Order Block is a price area where large institutional orders (from banks or big traders) were placed, causing a significant price move. These zones often act as strong support or resistance because they represent areas where smart money has shown interest in buying or selling.

Key points:

• Bullish Order Block (OB): Found at the bottom of a down move before a price reversal upward. Acts as a demand zone.

• Bearish Order Block (OB): Found at the top of an up move before a reversal downward. Acts as a supply zone.

• Traders use OB zones to spot high-probability entry points.