How many times have you heard about order blocks, FVG, BOS, CHOCH in other traders' posts and not really understood what they were talking about? Today I want to share what I’ve learned about these concepts because I believe they are really fundamental if you want to improve in trading.

The thing that surprised me the most when I started truly studying the market is understanding how it really works. It’s not small traders like us moving the market; it’s the big whales. They place huge orders, and the market moves around these. An order block is basically the way to identify where the whales have placed their orders.

I think that if you understand an order block well and use it correctly, you can significantly improve your accuracy. I don’t want to make any wild promises, but let’s just say that the difference between understanding and not understanding these patterns is remarkable. What fascinates me is that no one explains it as well as it should be explained.

So how exactly does an order block work? The whales buy, accumulate assets, manipulate the market, and then pump or dump. When you see a big move, there’s always an order block behind it. These blocks act as support or resistance, depending on where they are on the chart.

There are three main types. The bearish order block acts as resistance. You find it by looking for an oversold area, then mark the zone between the high and the low of the last green candle before that big dump. Every time the market returns to that area, you see a rejection. I’ve seen cases where the price dropped 28% from the creation of the block, and then when it returned to that zone, it rejected again by 37%.

Then there’s the bullish order block, which is where the big whales bought. It functions as support. You find it by marking the last low area from which the market rose significantly. When the market returns there, it bounces back up again. It’s fascinating to see how precisely the price respects these levels.

There’s also the consolidation order block, which you see when the whales are accumulating but the market looks boring. You see candles with small bodies and long wicks. Look for four to eight candles like that, and you’ll find your block.

Now, besides order blocks, there’s the Fear Value Gap, the FVG. When whales inject large amounts into the market, the price moves straight up, creating a gap between the high of the first candle and the low of the third candle. This gap acts like a magnet for the price. The market drops there and bounces back. I’ve seen the price fall into an FVG and bounce back 54%.

Here’s where it gets interesting: when you combine a bullish order block with an FVG, you have a serious setup. Wait for the market to drop to your block, place a buy order there, and set your stop loss just 1% below the block. Then set your take profit at the first bearish FVG or the bearish order block. I’ve seen this work quite often, not always of course, but often enough to be reliable.

I don’t want to tell you it will always work because that’s not true. But if you do your backtests and simulations, you’ll see that this approach works in a good percentage of cases and often gives you an interesting risk-reward ratio.

Important things to remember: always use a stop loss, only do spot trading if you’re like me, and practice before risking real money. This isn’t a magic system; it’s just a smarter way to read what the whales are doing in the market.