Order block

An order block is the last opposing candle (or a tight cluster of candles) before a sharp, structure-breaking impulse; this is the zone from which a large participant began moving price, and the market often reacts there again on a return. It is a type of zone of interest — a level price revisits to continue in the direction of the dominant trend.

In market structure, an order block marks the spot where opposing pressure was absorbed and control passed to one side. A bullish order block is the last down candle before an up impulse; a bearish one is the last up candle before a down impulse. The zone is stronger when the move out of it left an imbalance (FVG) and took liquidity: a return into the block then becomes a point of heightened attention rather than just a line on the chart.

In our method an order block is read inside a trading range and within higher-timeframe context, never in isolation. The Trade Model indicator maps ranges and structure on the chart, which makes it faster to locate meaningful zones of interest — order blocks among them — and to separate them from random pullbacks.