ZoneEdu
IntermediateLesson 3 of 4 · 9 min

Order Blocks

The last opposing candle before a strong move, and why traders watch it on return.

Illustrative chart · Bullish order block
Order block1Last down2Return
The last down candle (1) before a strong rally forms the zone. Price later returns to it (2).

How it is marked

A bullish order block is typically drawn over the last bearish candle before a strong move up that breaks structure. A bearish one is the mirror image.

Quality filters

Many traders only consider blocks that led to a break of structure and have not yet been revisited. Unfiltered, almost every candle could be labelled a block.

Key takeaways

  • Last opposing candle before a strong move.
  • Filter: caused a BOS, still untested.
  • Always define where the idea is wrong.

Charts are illustrative examples, not real market data. This content is for educational purposes only and is not financial advice.