Order Blocks: Smart Money Entry Points
Order blocks are the last opposing candle before a strong move. Learn this smart money concept for high-precision entries. Find institutional supply and.
What Are Order Blocks?
An order block is the last candle that moves against the trend before a strong impulse move. The theory: institutions placed large orders at this level, and the subsequent impulse was the result. When price returns to this candle, unfilled orders may trigger another reaction.
Identifying Order Blocks
- Bullish order block: The last down (red) candle before a strong bullish impulse
- Bearish order block: The last up (green) candle before a strong bearish impulse
- The impulse move must be stronger than average — at least 2× normal range
- Order blocks work best on 4H and Daily timeframes
Trading Strategy
(1) Identify a strong impulse move. (2) Mark the order block (the last opposing candle). (3) Wait for price to retrace to the order block. (4) Enter on a reversal candle within the block. (5) Stop: beyond the order block. (6) Target: the recent high/low or a Fibonacci extension.
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Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.