An order block is the last candle before a violent move — the footprint institutions leave when they load a position. Price often returns to it before continuing.
Banks and funds can't fill millions of contracts at one price without moving the market against themselves. So they accumulate inside a tight range, then push price hard in their intended direction. That last opposite-color candle before the explosive move is the order block: the zone where the big orders were placed.
Bullish order block: the last down candle before a strong move up. Bearish order block: the last up candle before a strong move down.
Why price comes back
Not all institutional orders fill on the first push. When price later returns to the order block, the remaining resting orders get filled — which is why these zones so often act as support (bullish OB) or resistance (bearish OB) on the retest. The market is literally rebalancing unfinished business.
How to mark one
Find a strong, impulsive move (a clear break of structure).
Look at the last candle of the opposite color right before that move.
Draw a zone from that candle's open to its close (some traders use the full high-low).
Wait for price to return to the zone and show a reaction — a rejection wick or a shift in momentum — before acting.
What separates a good order block from a bad one
Displacement: the move away from the block should be sharp and decisive, not lazy.
It caused a break of structure: the move broke a prior high or low.
It is unmitigated: price has not yet returned to it. A fresh, untouched block is stronger than one already retested.
It lines up with a fair value gap for confluence.
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