Honestly, I didn't understand for a long time why some levels hold the price, while others are broken within seconds. Then I figured out order blocks — and everything fell into place. This is one of the most useful concepts in analyzing market structure.

An order block is essentially a zone on the chart where large players (banks, investors, market makers) have concentrated their orders. When the price reaches this zone, something interesting often happens. Either it bounces off, or it breaks through with force. The main thing is that these are zones of high concentration of buy or sell orders, which create significant price movements.

Order blocks are formed at reversal points or strong impulses. Usually, this is the last candle (or group of candles) before a sharp move. In an uptrend, a bullish order block is a bearish candle right before the price jumps up. Conversely, a bearish order block is a bullish candle before a decline. The logic is simple: large players accumulate positions and then move the price.

There are three main types. The first is a regular order block, a classic support or resistance zone where the price often bounces. The second is an absorbed order block, when the price breaks through this zone and continues moving further. The third is a breaker block, a false breakout before a reversal. Each works differently and gives its own signals.

A regular order block is easy to recognize. It’s a zone where the price often bounces, like off a wall. When the price returns to such a level, volumes usually decrease, and then the price either bounces or breaks through with momentum. A bullish order block becomes support, a bearish one becomes resistance. That’s the whole mechanic.

An absorbed order block is something entirely different. It’s when an order block was broken, and the price continued moving in the opposite direction without pullbacks. This signals that one side (buyers or sellers) is stronger. If a bullish order block is absorbed downward, it means sellers took control. If a bearish one is absorbed upward, buyers are in control. After absorption, the broken level often becomes a resistance or support zone, but with the opposite role.

A breaker block is essentially manipulation by large players. The price breaks a level, stop-losses of retail traders are triggered, and then the market sharply reverses. It’s a false breakout that creates a new support or resistance zone. A bullish breaker block forms when the price breaks down, takes liquidity, and then surges. A bearish breaker block works the opposite: breakout upward, then decline.

What to do with this in trading? First, order blocks help find entry points with low risk. When the price returns to an order block, it’s often a good opportunity. Second, they are clear levels for stop-loss placement. Third, order blocks help understand market structure and identify where large players are accumulating positions. If you see where they entered, you can anticipate where they will take profits.

The main sign of a working order block is the price reaction. When the price approaches such a zone, volumes often decrease, and then either a bounce or a breakout occurs. Clear levels that the price respects — that’s what to look for. It can be support, resistance, or a consolidation zone before a strong impulse.

An important point: order blocks don’t always work. Sometimes the price just breaks through them without much emotion. But when you see a classic pattern with momentum, volumes, and structure — it often provides good opportunities. The main thing is not to fixate on a single level, but to look at the context and overall market structure.