An Order Block is the last down candle before a strong up move (or last up candle before a strong down move). It marks a zone where large players likely placed orders, and price often reacts to it on a return.
How traders use it
- Watch for a reaction when price returns to the block.
- Bullish order blocks sit below price, bearish above.
- Best combined with a break of structure in the same direction.
See it in dtcharts
Mark order blocks, gaps and liquidity on the chart in the dtcharts terminal with the drawing tools and Smart Money module.