JoymistaWhat Is an Order Block?
In SMC, an order block is the last opposite candle before a strong move that broke structure, seen as a zone price may return to.
Explained
A bullish order block is the last bearish candle before a strong rise; a bearish one is the last bullish candle before a strong fall. It carries more weight with a fair value gap and a clear break of structure, and loses its meaning if price closes right through it.
Example
Example with made-up numbersA bearish candle between 100 and 98, then a strong rise to 110 that breaks the previous high. The 98–100 zone is a bullish order block price may revisit.
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Related terms
- Fair Value Gap (FVG)A fair value gap is a three-candle pattern where price leaves a void: in a bullish one,…
- Market Structure: BOS and CHoCHMarket structure is the order of highs and lows: higher highs and lows in an uptrend,…
- LiquidityIn general, liquidity is how easily you can buy and sell without moving price much. In…
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Open in JoymistaEducational content, not investment advice.