Learning Objectives
- Understand what an Order Block is.
- Identify bullish and bearish Order Blocks.
- Learn how to use Order Blocks responsibly.
Definition
An Order Block is the final opposing candle before a strong impulsive move that breaks market structure. It often represents an area where institutions previously accumulated orders.
Bullish Order Block
The final bearish candle before a strong bullish move. Traders often monitor this area for future buying opportunities.
Bearish Order Block
The final bullish candle before a strong bearish move. Traders monitor this zone for potential selling opportunities.
Checklist
- Liquidity has been swept.
- A BOS or CHoCH has occurred.
- Strong displacement is present.
- Price returns to the Order Block.
- Entry confirmation is received.
Common Mistakes
- Treating every candle as an Order Block.
- Ignoring market structure.
- Entering without confirmation.
Key Takeaways
- Order Blocks are areas of interest.
- Always combine them with liquidity and structure.
- Wait for confirmation before entering a trade.
Congratulations!
You've completed the introductory Smart Money Concepts lessons. Continue practising these concepts on live charts before risking real capital.
Return to the Learn page and explore future lessons as Blue Nation Academy continues to grow.