OB( Order blcok )
In **forex trading**, an **Order Block (OB)** is a **price zone** where **big institutional traders** (like banks or hedge funds) have placed large orders. These zones often cause **price reversals** or **strong moves**, and traders use them to find **potential entries and exits** in the market.
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### 🔹 What is an Order Block?
An **Order Block** is:
* A **candlestick** (or group of candles) where **smart money** (institutions) made a significant **buy or sell decision**.
* A **supply or demand zone** where price is likely to **react** again in the future.
* Found **just before** a major price move (like a breakout or reversal).
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### 🔹 Types of Order Blocks
1. **Bullish Order Block (Buy OB):**
* Found before a strong **upward move**.
* Usually a **down candle** before price shoots up.
* It becomes a **demand zone** — price often **returns** to this level before going up again.
2. **Bearish Order Block (Sell OB):**
* Found before a strong **downward move**.
* Usually an **up candle** before price drops.
* It becomes a **supply zone** — price often **returns** to this level before falling again.
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### 🔹 How to Identify an Order Block
1. Look for a strong move (break of structure or big breakout).
2. Find the **last bullish candle before a big drop** (Bearish OB).
3. Or find the **last bearish candle before a big rally** (Bullish OB).
4. Mark the **high and low** of that candle as your OB zone.
5. Wait for price to **return to the OB**, then look for **confirmation to enter**.
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### 🔹 Why Order Blocks Work?
* Banks and institutions can't place all their orders at once — they break them into blocks.
* When price returns to their **order zone**, they may **add more positions**, causing a **reaction**.
* Retail traders can take advantage by **trading in the same direction** as the big players.
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