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How large players issue their positions: Order Block and Imbalance in practice

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If you've ever looked at a chart and thought, “why did the price turn around right here?” — the answer often lies in the zones left behind by banks and hedge funds. Order Block and Imbalance are not just theories; they are the footprints of large capital on the chart.

Order Block: where whales enter

Imagine: the price falls, and then suddenly turns upward. This last bearish candle before the turnaround is like a fingerprint. Major players placed their buy orders on it, and now this zone is their “position”. When the price returns here, they “absorb” it.

Two types:

  • Bullish Order Block — buying zone before rise
  • Bearish Order Block — sales zone before the decline

Finding it is simple: look for the last candle in the opposite direction before a significant movement. Here is your Order Block.

Imbalance: incomplete market orders

Imbalance is simply unfinished business. A big player buys everything indiscriminately, the price jumps, leaving a “gap” on the chart between the candles. The market will inevitably return here to fill this gap.

Visually: these are the gaps between the low of the current candle and the high of the next, or the zones where the price has not returned for a retest.

Why it works together

Order Block creates Imbalance. Large capital enters → price goes → gaps remain → the market fills them. It's like a chain: saw Order Block → waited for Imbalance → entered on the pullback → profit.

How to use it

Entry Point:

  1. Found Order Block on the chart
  2. Waiting for the price return to this zone
  3. I see Imbalance inside the block — this is confirmation
  4. I set a limit for buying in the block

Risk Management:

  • Stop below Order Block
  • Take profit at the next resistance level

Timeframes: On hourly/4-hour charts, the signals are more reliable. On minute charts, there's a lot of noise — only if you are already a pro.

Three Tips for Beginners

  1. Scroll through the history. Enable the demo account, open the monthly chart back, and look for Order Blocks. You will see patterns.

  2. Combine with volume. Order Block + volume spike = serious signal. One pattern is guessing, a combo of tools is analysis.

  3. Practice on the demo. Until you can enter a trade with your eyes closed, don't put real money in the game.

Order Block and Imbalance are the language spoken by big capital. Learn it, and the chart will become much more honest. The main thing is patience, discipline, and no impulsiveness. The rest will follow.

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This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
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