Order Blocks — The True Support & Resistance

Order Blocks (OBs) are the footprints left by institutional traders — the last candle before a major price movement, representing where large orders were executed. Unlike traditional retail support and resistance, order blocks reveal areas of actual institutional interest in the market.

A bullish order block typically forms before a strong upward move. Price often returns to this zone later to mitigate unfilled buy orders. Similarly, a bearish order block forms before a downward displacement. These revisits provide precise entry zones and clear invalidation points for professional traders.

Traders who learn to read OBs gain insight into market intent — understanding when institutions are accumulating or distributing positions. When combined with Break of Structure (BOS) and Fair Value Gaps (FVG), order blocks form a structured system that reveals manipulation and expansion phases within market cycles.

Modern tools powered by AI-based pattern recognition can automatically detect order blocks across multiple timeframes. This allows traders to identify key levels faster, maintain consistency, and improve overall trade optimization and execution.