I want to share something I’ve recently learned about order blocks — a pretty interesting concept in price analysis that many traders haven't fully exploited.

Order blocks are essentially a different way of looking at supply and demand zones. They help me identify very good entry points for reversal or trend continuation trades. Basically, an order block is the last candle (either bullish or bearish) near a support or resistance level, just before the price starts moving strongly. It sounds simple, but it’s extremely powerful when used correctly.

There are two main types: Bullish Order Block (BuOB) and Bearish Order Block (BeOB). A Bullish OB is a bearish candle that appears near support, before the price surges upward — it’s often followed by a strong Bullish Engulfing candle. Conversely, a Bearish OB is a bullish candle near resistance, before the price drops sharply — usually followed by a Bearish Engulfing candle.

My way of using order blocks is very simple: in an uptrend, I look for Bullish OBs to enter trades. I place entries around the order block zone, take profit at the next resistance level, and set stop loss below support. In a downtrend, I do the opposite with Bearish OBs.

But there’s one important thing — I can’t trade order blocks randomly. I need to understand the market structure clearly first. That’s why Dow Theory and market structure are so important — they help me know when an order block is valid and when it’s not.

In summary, order blocks are a very powerful tool for identifying strong supply and demand zones. It’s not investment advice, but a technical method that every trader can try and develop in their own way. I encourage you to study market structure more deeply to better understand how order blocks work in real trading.