What Is Order Block in Forex?
An Order Block is a point of interest on a chart where institutional traders like banks have placed pending buy or sell orders.(better seen on 15 Minute to 1 Hour Time Frames).
Institutional traders always trade high volumes so anywhere they place a pending order could act as a magnet and force price to come to it.
Order blocks could be Bullish or Bearish
1. Bullish Order Block
A Bullish order block can be spotted at the end of a down trend so the first bullish candle lower wick must be lower than that of the last bearish candle in the down trend
There should also be a GAP between the upper wicks of the first bullish candle and the third bullish candle. This means the second bullish candle should not have a wick
When this conditions are present, then you have found yourself an order block.
2.Bearish Order Block
This is similar to a bullish order block but the difference is that the bearish order block appears in an upward trend.
How I Trade Order Blocks
For me, when I spot an order block I place a pending order at the point and set my stop loss with a 1:2 risk to reward.
You need to spot an order block early because it can only be used once.
An order block is a candlestick or group of candlesticks where institutions placed large buy or sell orders before a strong price move.
Bullish order block → area where big buyers stepped in → price usually rises afterward
Bearish order block → area where big sellers stepped in → price usually drops afterward
Think of it as “footprints of the smart money.”
An order block is a price zone where big players entered the market, often causing a strong move, and which can act as future support or resistance.
An order block is a candlestick or group of candlesticks where institutions placed large buy or sell orders before a strong price move.
Bullish order block → area where big buyers stepped in → price usually rises afterward
Bearish order block → area where big sellers stepped in → price usually drops afterward
Think of it as “footprints of the smart money.”
An order block is a price zone where big players entered the market, often causing a strong move, and which can act as future support or resistance.
Okay I see but how can I spot order blocks on a chart? cos the whole chart is always filled with price rising and falling so how do we know which one is an order block and which one isnt?
An Order Block in Forex is a key area where large institutional traders tend to place thier buy or sell order to entere the market, creating strong support or resistance zones. These are typically found at trend reversals or consolidations and are identified by significant bullish or bearish candles followed by retracements. Traders recognize them by spotting impulse moves, marking consolidation areas, and waiting for price to revisit these zones for potential entries. Confirmation with other technical tools and volume analysis can improve accuracy. Order blocks help traders set stop-losses and take-profits while anticipating market reactions in those zones.
Okay I see but how can I spot order blocks on a chart? cos the whole chart is always filled with price rising and falling so how do we know which one is an order block and which one isnt?
1.Look for a Strong Move (Impulse Move)
Ask yourself:
“Did price explode upward or downward from this area?”
Look for:
Long impulsive candles
Multiple strong candles in the same direction
A clear “push” in price
2. Find the Last Opposite Candle Before That Move
This is the classic rule.
For a bullish order block (demand):
👉 Look for the last bearish candle before a strong move up.
For a bearish order block (supply):
👉 Look for the last bullish candle before a strong move down.
That last opposite candle is the “order block.”
