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Order blocks

The last opposite candle before a strong move marks where large orders may remain.

bullish order blockimpulse leaves the blocktapThe last opposite candle before a strong move. Price often returns to it once
Illustration for education. Prices are schematic, not real market data.

What it is

A bullish order block is the last down candle before a strong move up that breaks structure. The idea is that large buyers placed orders there and did not complete them; when price returns, the remaining orders may defend the zone. A bearish block is the mirror image.

Treat it as a zone with a probability, not a guarantee. It is stronger when it formed at a discount, after a liquidity sweep, with an imbalance (FVG) left behind.

How to use it

  1. Identify the impulsive move that broke structure.
  2. Mark the last opposite candle (body or full range).
  3. Wait for a first return to the zone with a reaction.
  4. Stop beyond the block; target the swing high or next level.
First return to a fresh zone has the best odds.

Common mistakes

  • Marking blocks on every candle.
  • Trading a block that has already been tested several times.
  • Ignoring the trend and location.

Practise it in TradeDesk X

The Chart’s Execution zone layer shows the entry area for the current plan and the Scanner’s plan lists entry, stop and three targets.

Open TradeDesk X Open Micro

Related lessons

Educational content only. Nothing here is financial advice or a recommendation to buy or sell anything. Trading leveraged products can lose more than you deposit. Practise with paper trading first and never risk money you cannot afford to lose.