Order block

The formula

The last opposing candle before an impulsive move.

How to read it

The level where a large position was built, and where price often reacts on the return.

An order block is only worth what follows it. With no clear displacement behind it, it is just an ordinary candle, and that displacement criterion is what separates usable areas from the rest. It is read in the same frame as market structure, never on its own.

The classic mistake

Finding them everywhere. On a chart, dozens of candles precede some move: with no written rule on the required displacement, everyone draws the order block that justifies the trade they already wanted.