In our previous posts, we learned how to spot where the big players hunt for liquidity and how they leave behind empty spaces (Imbalances). An Order Block (OB) is the actual candle that started the whole chain reaction.
It is the specific zone where smart money accumulated or distributed their orders right before an explosive move.
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Bullish Order Block (The Buy Zone): This is the last red candle right before a massive, explosive rally that breaks through an old ceiling (Market Structure Shift).
Bearish Order Block (The Sell Zone): This is the last green candle right before a heavy, aggressive drop that crashes through an old floor.
Why do they matter?
When institutions launch a massive move, they often don’t get all of their billions of dollars filled at once. They leave “unfilled orders” sitting at the source.
The market algorithm will naturally drive the price all the way back down to that exact last opposite candle to “collect” those remaining institutional orders. Traders call this Mitigation.
When the price taps into a valid order block, it’s like a rocket hitting a refueling station. The resting orders get triggered, and the price instantly snaps back in the direction of the main trend.
Instead of guessing where a stock might bounce, you draw a box around that very last opposite candle. That box becomes your high-probability entry zone with a very tight safety net (Stop Loss) placed just outside the block.
The Homework: Find the Launchpad
Step 1: Find a Breakout
Open TradingView and find a chart that recently had a massive, structural shift (a huge move that broke an old high or low).
Step 2: Trace it Back to the Source
Look at the very beginning of that explosive move. Find the final opposite-colored candle right before the explosion took off.
Step 3: Draw Your Box
Draw a horizontal box from the top wick to the bottom wick of that single candle, extending it to the right. Has the price returned to touch that box yet?
Step 4: Post Your Coordinates
In the comments, tell us: “On [$Ticker], I found a [Bullish/Bearish] order block on the [Time Frame] chart at $[Price]. I’m waiting for a tap and bounce.”
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