The Trader’s Blueprint: Reading Charts, Market Structure, and Analysis
📍 What is an Order Block?
An order block is a zone where institutional traders place large orders, causing a shift in market structure. When price revisits these areas, it often reacts because big players are still active there.
💰 Why Order Blocks Matter:
These zones act as high-probability trade setups.
Institutions don’t place all their orders at once; they come back to fill more at the same zones.
If you’re trading where institutions trade, your probability of success increases.
📍 Types of Order Blocks:
🔹 Bullish Order Block – A down candle before a big bullish move. Institutions were loading up long.
🔹 Bearish Order Block – An up candle before a big bearish move. Institutions were stacking short orders.
🚨 Example:
Price drops suddenly → It leaves behind a bearish order block.
Price comes back to that zone → It rejects and sells off again.
That’s smart money reloading their orders.
📍 How to Identify a Valid Order Block
✅ Look for Aggressive Moves Away from a Level – If price exploded from a zone, smart money was involved.
✅ Find the Last Opposite Candle Before the Move – That’s your order block.
✅ Watch for a Retest – When price returns to the block, that’s your entry zone.
📍 How to Trade Order Blocks
1️⃣ Mark the Last Opposite Candle Before the Impulse Move – That’s your order block.
2️⃣ Wait for Price to Return to the Block – Don’t jump in early.
3️⃣ Look for Confirmation – Rejection wicks, strong reactions, or liquidity grabs confirm the trade.
4️⃣ Enter & Set Stops Properly – Stop below/above the block, take profit at the next key level.
🔑 Key Takeaway:
Retail traders chase price. Smart money waits for price to return to their order blocks. Learn to spot them, trade with them, and stop getting wrecked by the market.