Smart-money concept

Order Block

The last opposite-direction candle before a strong, impulsive move — a zone where large orders are assumed to have been placed.

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What it is

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 institutions filled sizeable orders there, so price may respect the zone if it returns.

What it signals

When price revisits an order block it often reacts — bouncing from a bullish block or rejecting from a bearish one — making them potential entry areas in the direction of the impulse.

How to spot it

Find a strong impulsive move that broke structure, then mark the last opposite-colour candle before it started. That candle's range is the order block.

One caveat

Order blocks are a discretionary, retail interpretation of institutional activity — a proxy, not confirmed order flow. They fail often, so pair them with structure and confirmation.

Related terms

Liquidity Sweep / Stop HuntFair Value Gap (FVG)Supply & Demand ZonesBreak of Structure (BOS)

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