Ever wonder why price sometimes bounces from a spot on the chart that looks like nothing special? Often there's a single candle hiding there, and traders call it an order block. In this video you'll learn what an order block is: the last opposite candle right before a strong, impulsive move. A bullish order block is the last down candle before a strong move up, and a bearish order block is the last up candle before a strong move down. We cover how to mark one using the full range or just the body, what makes an order block stronger (a strong move away, a break of structure, and freshness), and why the first return usually matters most. Then we look at how some traders use it: wait for price to come back to the zone, look for a reaction, choose an entry, put the stop just beyond the block and aim for a clear target, with a full worked example. We finish with the most common mistakes, a quick recap and a note on risk. Order blocks are part of Smart Money Concepts and a way to read the chart, not a guaranteed signal.
In This Video
- 0:00Intro
- 0:28What an order block is
- 0:57Bullish and bearish order blocks
- 1:26How to mark it: full range or body
- 1:58What makes it stronger
- 2:31Fresh or tested: the first return
- 2:56How traders use it: wait, then a reaction
- 3:24Stop, target and a worked example
- 4:11Common mistakes
- 4:41Quick recap and a note on risk
Full article coming soon. Watch the video above for the complete lesson.
