Order Block — Trading Wiki

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Published by TradeHQ. Site creator: Anuga Weerasinghe. This page has no recorded editorial review date; the About page explains the site's editorial approach.

What Order Block means

An order block is a chart-defined zone used in some technical-analysis frameworks; candles alone do not establish actual institutional orders. Identified as the last opposing candle before an impulsive move.

In depth

An order block is a chart-zone label used in some trading frameworks, often for the last opposing candle before a selected directional move. Definitions differ between authors. Candles aggregate transactions and do not identify a particular institution, an unfilled order or a hidden inventory position. Terms such as mitigation and accumulation remain interpretations unless separately supported by order or participant evidence. A useful worksheet fixes the zone criteria in advance, records every revisit and includes failures. The order-mechanics reference explains actual order instructions; it does not validate an order-block forecasting method.

Key points

• Interprets price zones without proving institutional accumulation or distribution
• Bullish OB: last red candle before impulsive move up
• Price may revisit or move away from a marked block; continuation is uncertain

Why it matters when you are learning

Label the candle zone and the rule used to select it. Price candles alone cannot identify a particular institution's orders, remaining inventory or future buying intentions.

Worked exercise and its limits

Label the candle and zone criteria before viewing later candles. Record every revisit and every failure under that definition. A chart zone cannot establish an institution's actual orders; the term has no single exchange-standard definition.