Glossary / Market structure

Order block

An educational concept. Not a signal, not a strategy, and not a trade Josh has taken.

Stepped white and ice-blue blocks forming a rising landscape, an unlabeled picture of market structure.
Illustration of the idea, not a market chart and not a result.

In "smart money concepts", the last opposite-direction candle (or small cluster) before a strong move that breaks structure: the last down candle before a bullish displacement, or the last up candle before a bearish one.

How traders use it: Watched as a possible area for price to return to before continuing. Traders often require that the move from it broke structure and left a fair value gap.

Common mistake: Calling every candle before any move an order block. Without displacement and a structure break, it is just a candle.

Related: Breaker block · Mitigation block · Supply and demand zones · Displacement

See this term in the full glossary · All terms

Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.