In the world of smart money trading, Order Blocks are one of the most powerful and misunderstood tools. If you’ve ever wondered how institutions consistently buy low and sell high — this is it.
Let’s break it down 👇
📌 What is an Order Block?
An Order Block is the last bullish or bearish candle before a strong move in the opposite direction — where big players like institutions or whales place their bulk orders.
Think of it as:
🔴 A Bearish Order Block = Last up candle before a sharp drop
🟢 A Bullish Order Block = Last down candle before a strong rally
Price often returns to this zone before continuing in the original direction — giving retail traders a second chance to enter smart.
🧠 Why Order Blocks Matter
✅ Institutional Insight — They reveal where smart money entered
✅ Accurate Entries — Better than random support/resistance
✅ Risk Control — Gives you clear zones for tight stop-losses
✅ High Reward Potential — Price often reacts heavily to these zones
📊 How to Identify a Valid Order Block
1. Look for a strong impulse move (sharp breakout up or down)
2. Identify the last opposite candle before that move
3. Mark the entire candle body and wick — that’s your Order Block zone
4. Wait for price to retrace back into the zone
5. Watch for confirmation (rejection wicks, break of structure, volume spike)
✅ Example:
Price is consolidating
You see a bullish candle, then a massive drop
That bullish candle = Bearish Order Block
Price comes back, taps into that candle → dumps again
Boom — perfect entry.
🔍 How to Trade It
Entry: When price re-enters the order block zone and shows rejection
Stop-Loss: Just above the bearish OB / below the bullish OB
Target: Previous swing high/low or next liquidity area
📈 Timeframes: Works on all — but best on 15min, 1H, 4H for confirmation
🧩 Bonus Tip: Combine with Structure
Don’t trade every OB blindly. Make sure:
You’re in the direction of the trend
It aligns with a break of structure or change of character
You confirm with a reaction candle (like a pin bar or engulfing)
🧠 Final Thought
Order Blocks are where the real money plays. If you’re not watching them, you’re trading blind.
Learn to spot them, respect them, and use them as your blueprint for precision entries.
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