I've been thinking about order blocks recently, and it turns out that just changing the way you view demand and supply zones can significantly improve your trading accuracy.

Basically, an order block is a candlestick close to support or resistance levels just before a big price move. Whether you're doing reversal trades or continuation trades, entering within this area is effective. The mechanism is simple, but understanding this concept allows you to see psychologically strong price levels.

Order blocks are divided into two types. Bullish OB (BuOB) appears as a weak bearish candlestick just before an upward move, near the support level of an uptrend. Conversely, Bearish OB (BeOB) is a strong bullish candlestick just before a downward move, near the resistance level of a downtrend.

When targeting a bullish order block, confirm a strong bullish candlestick immediately after that OB. This becomes a bullish engulfing candlestick. Enter from there, setting appropriate stop-loss and take-profit levels. The same applies for bearish OBs: confirm a strong bearish candlestick immediately after the OB before entering.

However, what's crucial here is understanding market structure. Don't rely solely on order blocks; it's really important to combine this with Dow Theory and market structure analysis. Only after understanding these can you truly know when to enter and when to avoid.

Ultimately, an order block is an area where demand and supply are concentrated. In an uptrend, if the price returns to a bullish OB, buy; in a downtrend, if it reaches a bearish OB, sell. This is the basic way to use it.

For reference, this is just one way of thinking about a trading method, not investment advice. Be sure to verify it thoroughly yourself and decide whether to incorporate it into your own strategy.