Been trading crypto for a while now and honestly, the order block strategy is one of the few things that actually works consistently. Not gonna lie, took me time to really understand it but once it clicked, the wins started coming.



So basically, order blocks are just supply and demand zones where the big players have positioned themselves. When price moves impulsively and breaks structure, it leaves behind these zones. The key thing is - price always comes back to fill these gaps. That's just how markets work.

A bullish order block is that last down candle right before price rips upside and breaks through the previous high. You'll see strong momentum up, which creates an imbalance. Price needs to come back and rebalance, fill the liquidity, let institutions place more orders. That's your setup.

Here's the thing though - not all order blocks are created equal. The newer, untested ones hit different. If an order block has already been tested multiple times, it's less reliable than a fresh one. That's just the reality. Also, higher timeframes matter way more. A 4H bullish order block that moved price $5000 is way more significant than a 15M one that only moved $500.

How to trade it? Once you spot a bullish order block, you enter at the top of that block. Your stop loss sits right at or just below the low. The 50% equilibrium point is also crucial - if price only fills 50% of the block, you can mark that order block as complete and move on.

Bearish order blocks work the same logic but inverted. Last up candle before the downside break. Same entry and stop loss rules apply.

One more thing - you can refine your order blocks. If the momentum candle didn't fully engulf the original block, zoom in and refine it down to the actual candle that matters. That's how you get precise entries.

The market structure you're seeing matters too. If it's bullish structure, focus on demand zones and bullish order blocks for longs. If it's bearish, look for supply zones and bearish setups for shorts. Don't fight the structure.

This strategy has been solid for me because it's based on how institutions actually move price. They create these imbalances, price comes back to fill them, and you profit from the rebalance. Once you start seeing order blocks everywhere on your charts, the whole game changes.
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