Honestly, when I first started trading, charts seemed like chaos to me. But then I realized that behind all these candles, there is a certain logic that can be learned to read. And the key to this is understanding how big players (banks, funds) actually build their positions.

Here are two concepts that really helped me understand. The first is the order block. Essentially, these are zones on the chart where large participants have placed their orders. It looks simple, but these areas often become the starting points of significant market movements.

How to find them? Usually, an order block forms where the price sharply changes direction. On the chart, this is the last candle (or several) of the opposite direction before a serious move. There are two types: a bullish order block — a buy zone before an uptrend, and a bearish one — a sell zone before a downtrend.

But here’s what’s interesting — an order block rarely works alone. It almost always appears alongside an imbalance. This is when demand sharply exceeds supply (or vice versa), and the price makes a sharp jump, leaving “empty spaces” on the chart. Imbalance is unfinished orders, and the market tends to return to these zones to fill them.

On a candlestick chart, imbalance looks like an area between the low of the current candle and the high of the next, or simply a gap between candle bodies where the price didn’t retest. This is a very important signal.

When I analyze the chart, I look for this connection. Large players place orders, creating an imbalance, the price moves, and then it returns to the order block to fill it. And at this moment, you can enter along with them.

Practically, it looks like this. First, I find an order block on the chart. Suppose the price sharply rose and left behind a bullish block. Then I look for imbalance — check the candles, is there an area where the price hasn’t retested yet? If the imbalance is right within the order block zone, it strengthens the signal.

Next, I wait. I wait for the price to return to this block. When it happens, I place a limit buy order. I set a stop-loss below the order block, and take-profit at the level of the next resistance. Simple and logical.

For beginners, I’d recommend a few things. First, review historical data. Look for examples of order blocks and imbalances on charts — this will help you learn to see them. Second, don’t rely solely on these tools. Combine them with Fibonacci levels, volume, or trend lines — this will give you more confidence.

Another important point — the timeframe. On smaller timeframes (1M, 5M), order blocks form often, but signals are less reliable. I recommend starting with larger intervals — 1H, 4H, or 1D. Patterns tend to work more consistently there.

And of course, practice on a demo account before risking real money. Work out the technique, feel how imbalance and order blocks interact across different assets.

In the end, these two tools are a way to peek behind the scenes of how the market works. Order blocks and imbalances show you the behavior of big players. It’s not a guarantee, but it’s a powerful guide. The main thing — remember that success in trading depends on analysis, patience, and discipline. Apply this knowledge consistently, and you will definitely improve your results.