Regarding order blocks, there are recent insights that make me reconsider some things. Even though they are fundamental tools for winning in trading, I think many people overlook them.

Order blocks are essentially a different perspective on demand and supply zones. They refer to the last bearish or bullish candlestick near support or resistance levels before a significant price movement. It's simple, but understanding this can dramatically improve trading accuracy.

In reality, using order blocks offers two major benefits. One is identifying effective reversal entry points. The other is pinpointing price levels that significantly influence trader psychology. In other words, they can be used for both reversal and continuation trades.

Order blocks are divided into two types: Bullish Order Block (BuOB) and Bearish Order Block (BeOB). A bullish order block appears near support levels and is the last bearish candlestick before a sharp price rise. In an uptrend, traders target this BuOB line. Conversely, a bearish order block appears near resistance levels and is the last bullish candlestick before a sharp decline. In a downtrend, traders identify this BeOB.

The trading method is straightforward. When the price reaches a bullish order block, consider entering on the strong bullish candlestick (bullish engulfing candlestick) immediately afterward. The same logic applies to bearish order blocks: confirm a strong bearish candlestick after the OB before taking a position. Entry, stop-loss, and take-profit levels can be set simply.

However, to use order blocks effectively, a deep understanding of market structure is necessary. Without grasping Dow Theory and the overall market flow, they become just technical tools. I believe this is why many traders fail.

In conclusion, order blocks are among the most powerful areas within demand and supply zones. In an uptrend, buy when the price reaches a bullish order block; in a downtrend, sell when it hits a bearish order block. Simply executing this can significantly improve your trading success rate.

Finally, this is just for reference and not investment advice. I encourage you to explore more methods tailored to your trading style.