Order block

DefinitionThe last opposite candle before a strong move, read as a zone where large orders may have been placed.

An order block is usually marked as the last bearish candle before a strong move up (bullish order block), or the last bullish candle before a strong move down (bearish order block). Traders watch the zone between its high and low for a reaction when price comes back.

It is a way of reading structure, not a guarantee. Order blocks that were already revisited, or that sit against the higher-timeframe trend, tend to be weaker.