I can explain to you what an order block is — an extremely useful concept that many traders haven't fully exploited.

Actually, order blocks are not something new; they are just a different way of looking at supply and demand zones. But they are very powerful when you know how to use them. I see many traders use order blocks to find highly effective reversal entry opportunities or to identify price zones that significantly impact market psychology.

The simplest way to understand it: an order block is a zone that provides a good entry point for reversal or continuation trades. More specifically, it is the last bearish candle or the last bullish candle near support/resistance levels, just before the price makes a strong move.

There are two main types: Bullish Order Block (BuOB) is a bearish candle near support before a strong upward move in an uptrend. Bearish Order Block (BeOB) is a bullish candle near resistance before a strong downward move in a downtrend.

With a Bullish OB, you'll see a last bearish candle followed by a strong bullish candle, like a Bullish Engulfing. Setting entries, take profits, and stop losses becomes quite clear once you understand the structure. Conversely, a Bearish OB is the last bullish candle, followed by a strong bearish candle, like a Bearish Engulfing.

But there's an important point: you shouldn't always trade based on order blocks. You need to understand market structure — that’s the key. Dow Theory will help you add knowledge to correctly identify when to enter a trade.

In summary, what an order block really is: a powerful supply/demand zone. When you see the price reaching a Bullish OB in an uptrend, that’s a buy signal. When the price reaches a Bearish OB in a downtrend, that’s a sell signal. This is a simple but highly effective way of thinking if you apply it correctly.

I'm sharing this knowledge so you have an additional tool in your trading skill set. Every trader should find a method that suits them. This is just a reference material, not investment advice.