Order Block: The Complete Guide
An order block is a price zone where large institutional orders were placed, creating a significant market impact that often leads to price reversals wh...
An order block is a price zone where large institutional orders were placed, creating a significant market impact that often leads to price reversals when revisited. These zones represent areas where smart money accumulated or distributed positions, making them valuable for retail traders seeking high-probability setups. Understanding order blocks helps you trade alongside institutional activity rather than against it, significantly improving your win rate and risk-reward profile. Order blocks are not just another technical indicator—they're visual representations of where major market participants placed their orders. Unlike traditional support and resistance levels, order blocks form through specific price action patterns and carry stronger institutional weight. When price returns to a validated order block, it often reacts strongly due to the presence of unfilled institutional orders waiting to be executed. An order block represents a price zone where institutions executed large orders, typically through block orders that split a single position into smaller chunks to avoid slippage.