What is an order block?

An order block is created after a long and strong trend. The order block then looks like a market top or bottom. Price leaves the order block with a high momentum breakout and/or starts a new trend when leaving the order block. Order block is a part of smart money trading. It is basically shifting of structure for a bigger move.

What is a bearish order block?

Above in this article, the meaning of order block and how to identify them has already been established; that being said bearish order block is when there is an institutional candlestick breakout on a bearish direction from a consolidation zone on a higher timeframe. Below is an Image of a bearish order block. WHAT IS BULLISH ORDER BLOCK?

Is a range an order block?

As we mentioned, order blocks seem like a ranging market, but that does not mean every range is an order block. So, to ensure the range is an order block situation, it is best to use a volume indicator to confirm that the trading volume is unusual.

How to identify order blocks in forex?

Order blocks are best identified on higher time frames after market consolidations because order blocks are formed as a result of big financial institutions and banks. This is why the order block candles are bigger than the consolidation zones. Below is an image of how to identify order block in Forex. RELATED: HOW TO KNOW WHEN A TREND IS ENDING?