Order Block Trading in Futures: Identifying
It’s 9:15 AM on a volatile futures session. You watch the ES chart form a sharp reversal after a 10-tick spike. While others chase the move, your strate...
It’s 9:15 AM on a volatile futures session. You watch the ES chart form a sharp reversal after a 10-tick spike. While others chase the move, your strategy identifies a hidden institutional order block forming beneath the price action—triggering a precise scalping entry before the market reverses 15 points. This isn’t luck. It’s order block trading powered by tape reconstructor technology. Order Block is a price zone where institutional traders executed large, unbroken orders, creating a structural imbalance. These zones often form at swing points before significant price reversals or continuations. Traders who identify them gain a statistical edge by entering near institutional "footprints" rather than reacting to price. Key fact: Institutional order blocks represent 68% of high-probability reversals in ES futures during the first 30 minutes of the session, according to CME Group’s 2023 market structure analysis. Tape Reconstructor is a specialized tool that analyzes order ID sequences on the market tape to detect how institutions split large orders across price levels.