Let's talk about something that fundamentally changes the understanding of market structure — about order blocks. Honestly, when I first understood this concept, many of my trading decisions fell into place.

An order block is essentially an area on the chart where major players (banks, institutions, market makers) have accumulated positions. It's not just randomly there; these are places where significant price movements have occurred. See, when the price reverses or makes a sharp impulse, there’s usually a group of candles beforehand that form a kind of foundation. That’s the order block — an area of high order concentration.

There are two main types. A bullish order block forms where large buyers opened long positions — this becomes support. A bearish order block is an area where short positions were opened, and it acts as resistance. When the price returns to such a zone, it often bounces off like hitting an invisible wall.

Interestingly, an order block can be recognized by several signs. Usually, it’s the last candle that moves against the main trend before the price sharply shifts in the opposite direction. Do you see decreasing volume as it approaches the zone? Consolidation before an impulse? Those are signals.

Now, there are three varieties. The regular order block is a classic zone with large orders, serving as support or resistance. An absorbed order block is when the price breaks through this zone and continues moving in the opposite direction. This can indicate a change in market structure, which is quite significant.

And then, the breaker block — this is even more interesting. It’s when the price makes a false breakout of a level, takes liquidity (triggering retail traders’ stop orders), and then sharply reverses. This is a classic manipulation by major players. A breaker block shows where the market changes direction, and it often precedes a strong impulse.

How to use all this? First, order blocks help find entry points with low risk. When the price returns to such a zone, it often provides a great opportunity. Second, they are ideal places for stop-losses — acting as clear levels. Third, they assist in analyzing market structure, understanding where major players are accumulating positions.

A practical example: the price breaks a key level downward but then sharply reverses upward — that’s a bullish breaker block. The broken level becomes a new support. Or vice versa — a breakout upward, then a decline, and the level becomes resistance.

Order blocks are not magic; they simply reflect how the market works. When you start seeing these zones, trading becomes much more logical. The main thing — don’t overcomplicate it, just observe the price and how it reacts to these key levels.