📖 Financial Lexicon Term
What is Order Block?
The last bearish candle before a strong bullish move, or the last bullish candle before a strong bearish move, representing institutional accumulation.
Detailed Explanation
Order Blocks are refined supply and demand zones. They mark the exact footprints where central banks or large funds injected massive capital to reverse the market. Traders wait for price to return to this block to enter trades alongside the institutional flow.
💡 Practical Trading Example
A massive sell-off starts after a small green candle. That green candle is the bearish Order Block. A trader will short the market when price eventually returns to touch it.