Order Block Explained
An order block is the last opposite-direction candle before a strong impulsive move — a zone where large orders were placed and where price often returns before continuing.
What is an order block?
A bullish order block is the last down candle before a sharp rally; a bearish order block is the last up candle before a sharp drop. The idea is that the institution accumulating a position leaves a footprint in that final candle before it drives price away.
Traders mark the open-to-close (or high-to-low) range of that candle as a zone and watch for price to revisit it. A revisit that holds is treated as a continuation entry in the impulse direction.
How to trade an order block
Look for three things: an obvious impulsive move away from the block (displacement), a clean origin candle, and often an unfilled fair value gap created by the impulse. The higher the timeframe, the more reliable the block.
Entries are placed as price mitigates (returns into) the zone, with a stop beyond the far edge of the block. Not every block holds — a block that price closes decisively through is invalidated.
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Play Chart Bound free → Try today's Call the Candle →Frequently asked questions
What is a bullish order block?
The last bearish (down) candle before a strong up move. Its range is marked as a demand zone where price may return before continuing higher.
How is an order block different from support and resistance?
Support/resistance is a horizontal level tested many times. An order block is a specific candle's zone tied to an impulsive move away from it, used as a one-to-few-touch mitigation area.
Do order blocks always hold?
No. An order block is a probability zone. If price closes decisively through the block rather than reacting to it, the block is invalidated.