Order Block Strategy: Using Tape
It's 3:15 AM. Your algorithm just identified a high-probability order block on the ES futures chart, and price is now testing it with institutional volu...
It's 3:15 AM. Your algorithm just identified a high-probability order block on the ES futures chart, and price is now testing it with institutional volume. You don't need to be awake to catch this move—your strategy is already positioned to capitalize on the market's institutional activity. Order block is a price zone where institutional traders have placed significant buy or sell orders, representing the footprints of smart money activity in the market. These zones reveal where large institutions have positioned themselves before a significant price move. Institutional order flow is the real-time analysis of order activity by large market participants, including banks and hedge funds. It allows traders to see where institutional activity is concentrated before it reflects in price movement. Order blocks create areas with high trading volume and liquidity. These zones can act similarly to support and resistance levels in the future, but with the added confidence that institutional money has been deployed there. Understanding liquidity is crucial for order block trading—these areas represent where large orders can be executed without significantly moving the market.