Been trading for a while now and I keep coming back to one thing that actually works consistently - understanding order blocks. Took me time to really get it, but once it clicked, the whole market structure started making sense.



So basically, an order block is that final candle before price makes a big impulsive move and breaks structure. It's where the most recent higher high or lower low gets taken out. Sounds simple but there's a catch - price has to actually break structure for it to be valid. If price just moves sideways without creating new highs or lows, that last candle isn't a real order block.

Here's what I noticed in my own trading: the newer, untested supply or demand zones tend to work better than ones price has already hit before. Makes sense right? Fresh zones haven't been mitigated yet. One trick I use is watching that 50% equilibrium point of an order block - price loves to come back and fill that before continuing. Once it does, I mark that order block as done and move on.

Timeframe matters way more than people think. A bullish order block on the 4h chart can trigger a $5000 move, while the same setup on 15m might only give you $500. Higher timeframes = more reliable zones. And obviously, you gotta match your bias to the market structure you're seeing. Bullish structure? Look for longs at demand zones and bullish order blocks. Bearish structure? Do the opposite.

The bullish order block specifically - it's that last down candle before momentum explodes upside and breaks structure. Institutions have placed their big orders here, and price gravitates back to rebalance and fill liquidity. Your entry is at the top of that block, stop loss sits at or just below. Clean and simple.

Bearish order blocks work the same way but inverted - last up candle before downside momentum. Price comes back to rebalance, and you enter at the top with your stop just below.

One thing I refined over time: if the candle after your potential order block doesn't fully engulf it, you can tighten it down to just the momentum candle itself. Gets you more precision on your entry.

This is the kind of stuff that separates consistent traders from the rest. Takes practice to spot these zones correctly, but once you do, the setups become obvious. If you're serious about trading, understanding how these bullish order blocks and bearish ones work is non-negotiable.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin