When doing market analysis, I realize that the concept of order blocks is truly important.

It's an alternative approach to understanding demand and supply zones, but mastering it can significantly change the accuracy of your trades.

Simply put, an order block is the last bearish or bullish candlestick before a major price move.
It is located near support and resistance levels, and it helps identify entry points for both reversal and continuation trades.

Broadly speaking, there are two types of order blocks: bullish order blocks (BuOB) and bearish order blocks (BeOB).
The bullish ones are bearish candlesticks before an upward move, which serve as buy signals.
On the other hand, bearish ones are bullish candlesticks before a decline, indicating a selling opportunity.

In the case of a bullish order block, find the last bearish candlestick just before a sharp price increase.
Then, when a strong bullish candlestick appears, it functions as a bullish engulfing candlestick.
This becomes an entry point, where you set take profit and stop loss levels.

A bearish order block is the opposite: identify the bullish candlestick just before a sharp drop.
If a strong bearish candlestick follows, it acts as a bearish engulfing candlestick, signaling a sell entry.

However, to use order blocks effectively, you need a deep understanding of market structure.
Learning alongside Dow Theory makes it a more powerful analytical tool.
In an uptrend, when the price reaches a bullish order block, buy;
in a downtrend, when it reaches a bearish order block, sell.
This is the basic way to use them.

Order blocks also function as demand and supply zones—powerful concepts.
They are simple yet highly effective, helping identify price levels that greatly influence trader psychology.
If you want to improve your trading skills, it’s important to deeply understand the concept of order blocks.

Just to be clear, this is for trading technique reference only, not investment advice.
It’s essential to research more methods yourself and customize them to fit your trading style.