What is an order block?
An order block is a price zone, usually the last opposing candle before a strong, fast move, where some traders hypothesize that large unfilled orders were placed.
The short version
An order block is a zone on the chart that traders mark just before a sharp move. The common convention: in an upward move, look at the last down candle before the push higher; in a downward move, the last up candle before the push lower. The high-to-low range of that candle (or sometimes just its body) is drawn as a zone.
The term comes from the ICT (Inner Circle Trader) teaching style and the wider "smart money concepts" community. It is a trading model, not a scientific law, and not every trader defines it the same way.
The idea behind it
The hypothesis goes like this: when large participants want to buy or sell a lot, they cannot fill everything at one price without moving the market against themselves. So they may leave orders behind, and when price later returns to that zone, those orders could matter again. That is the theory. You cannot see other people's orders on a normal chart, so it stays a hypothesis.
What to keep in mind
Price does not have to respect an order block. Many zones get ignored or traded straight through, and where exactly to draw the zone is a judgment call. Students usually learn to read order blocks together with market structure and liquidity, and to decide in advance how much they are willing to lose if the zone fails.
Frequently asked questions
Is an order block the same as support and resistance?
They overlap in spirit, since both mark areas where price has reacted or might react. An order block is drawn from a specific candle before a strong move, while classic support and resistance is usually drawn from repeated touches of a level.
Does price always return to an order block?
No. Price may never return, may return and ignore the zone, or may react to it. Treat it as an area to study, not a prediction.
Can a beginner learn order blocks?
Yes, but it helps to learn market structure and liquidity first, because an order block means little without that context. Phase 1 of the Aeterna curriculum is free and starts from the basics.
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