Trading glossary

Order block: meaning in trading

An order block is the last opposite candle before a strong move, often treated as a zone where price may react again.

Before a sharp move up, there is usually a final down candle where large buy orders were placed. Smart money traders mark that candle as an order block and watch for price to return to it.

A word of caution

Almost every chart has dozens of candles that fit the description, so order blocks are easy to see after the fact and hard to trade on their own. We use them only as context. Our entries come from a clear sequence: a liquidity sweep, a change of character and a pullback.

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