Let's talk about something that really helps understand the behavior of major players in the market. I mean order blocks — they are not just a theory, but a tool that shows where banks and institutional investors place their positions. Understanding how to identify these zones can seriously improve the quality of your trading.

An order block is a zone on the chart where there is a high concentration of buy or sell orders. Usually, it is the last candle (or group of candles) before a sharp impulse. If the candle moves against the main trend, and then the price soars — that is the place where large players accumulated their positions.

How to identify an order block in practice? Look for places where a reversal or significant price movement occurred. Pay attention to decreasing volumes as the price approaches this zone and clear support or resistance levels that the price often respects. There are several types: a bullish order block, where large players opened long positions and created a support zone, and a bearish order block, where they opened short positions, forming resistance.

But that’s not all. There are three types of these structures. A regular order block is a standard zone where the last candle before an impulse looks like consolidation before a strong move. An absorbed order block is when a previously significant support or resistance zone is broken, and the price continues moving in the opposite direction. This indicates that one side (buyers or sellers) has a clear advantage.

A breaker block is my favorite concept because it often indicates manipulation. The price breaks a level in one direction, retail traders’ stop orders are triggered, and then a sharp reversal occurs. This is a false breakout that shows the actions of large players. A bullish breaker block forms when the price breaks below a support zone but then reverses and starts moving upward. A bearish breaker block is when the price breaks above resistance, takes liquidity, and then falls.

How to use this information? First, for finding entry and exit points. When the price returns to an order block, it often provides an opportunity to enter with low risk. Second, for setting stop-losses — these zones serve as clear reference points. Third, for confirming reversals or trend continuations. If an order block has been absorbed, it often indicates a trend continuation in the direction of the breakout.

To truly learn how to identify order blocks, practice is needed. Look at charts, find these characteristic candles before impulses, notice where the price pulls back and bounces. Over time, you will start to see these patterns automatically. And then trading will become much more conscious — you will trade not based on emotions, but based on market logic, understanding where the big money is concentrated.