I just realized that many new traders do not fully understand what an order block is and how important it is in the market. Today, I want to share a little about this concept because it has really helped me improve my trading skills.

What is an order block? Simply put, it is a special price zone — specifically, the last candle before a strong price movement. You can think of it as a different perspective of supply and demand, but it is very useful for finding entry points.

There are two main types that I usually use. The first is the Bullish Order Block — which is a bearish candle near support, just before a strong upward move. At that time, the next strong bullish candle is often a Bullish Engulfing. The second is the Bearish Order Block — which is a bullish candle near resistance, before a sharp decline, followed by a Bearish Engulfing.

When I understand what an order block is and how it works, I realize it helps me in two main ways. First, it helps me find effective reversal entry opportunities. Second, it helps identify price zones that significantly influence market psychology. These zones are often where many traders place their orders, so when the price returns here, reactions tend to be very strong.

The usage is also not complicated. In an uptrend, I wait for the price to reach a Bullish Order Block to enter long. Conversely, in a downtrend, I wait for the price to reach a Bearish Order Block to enter short. Entry, Stop Loss, and Take Profit are set based on the structure of the order block candle.

But it’s important to note that you shouldn’t always trade with order blocks. To do this well, you need to understand the market structure clearly. That is the key to knowing when an order block is truly reliable and when to avoid it.

In summary, what is an order block? It is a strong supply or demand zone that you can leverage to improve your trading skills. It’s not complicated, but it is extremely effective if used correctly. I encourage everyone to learn more about market structure and Dow Theory to supplement this knowledge. This is just a sharing of experience, not investment advice.