Order Block: A tool that professional traders always use

To put it bluntly: What is an Order Block?

Order Block is not a new concept, but it is one of the most effective tools for capturing high-quality entry points. Essentially, an OB is the last candles before the price gets “disrupted” - meaning it is located in the Support/Resistance area right before a strong move.

Simply put: OB = the area where big players usually accumulate ( or distribute ) before shocking the market.

Why is Order Block worth learning?

In fact, every trader will eventually have to face the question: Where to enter for a clean setup? OB answers that question:

• Identify a nice reversal point ( called a reversal entry)
• Find the area where traders' psychology is most squeezed.
• Setup with optimal Risk/Reward

2 basic types of Order Block

Bullish Order Block (BuOB): It is the last bearish candle at the Support zone, right before the price skyrockets. When you see BuOB confirmed by a Bullish Engulfing candle immediately after = buy signal.

Bearish Order Block (BeOB): Conversely - a bullish candle at Resistance, before being thrown down. When Bearish Engulfing appears = sell signal.

Key Point: When to trade OB?

This is where 80% of traders lose: they trade OB everywhere. The reality is that OB is only reliable when it is within a clear trend (uptrend or downtrend). To understand more deeply, you must master Market Structure - it's like the framework of the chart.

Quick Tip

OB is a strong Supply/Demand zone. The simplest strategy:

• Uptrend? Wait for the price to reach BuOB then buy.
• Downtrend? Wait for the price to reach BeOB and then sell.

But remember: this is just a tool, not an absolute truth. Combining it with risk management + money management is the way to survive long-term in crypto.

Disclaimer: This article is for reference only and is not investment advice.