A bullish order block is usually:

The last down candle before a strong move up. It is the last down candle before an impulsive move up that breaks structure.

What makes an order block more reliable?

It led to a clear break of structure. A block that produced an impulse and a structure break shows real interest.

Where should the stop go for a long from a bullish block?

Just beyond the low of the block. A close through the far end of the block invalidates it.

Strategies School / ICT / Smart Money Concepts

Order Blocks

Intermediate · 9 min read

Find the last opposite candle before a strong move and use it as a zone to enter when price returns.

What it is

A bullish order block is the last down candle before a strong move up that breaks structure. A bearish order block is the last up candle before a strong move down.

The idea is that the candle marks where large orders were placed. When price returns to that zone it may react again. This is a model, not a guarantee.

The best blocks come with a clear impulse (big candles, little overlap) and a break of structure.

How to spot it

Find a strong impulsive move that breaks a swing high or low.
Mark the last opposite candle before the move (body or full range).
Draw the zone forward and wait for price to return.
Skip blocks that were already tested or that sit in the middle of a range.

Trade plan

Entry: When price returns into the block and shows a reaction, such as a rejection candle or a CHoCH on a lower timeframe.
Stop loss: Just beyond the opposite end of the block. A close through it invalidates the idea.
Target: The high of the impulse or the next liquidity pool, aiming for at least 2R.

Common mistakes

Wrong: Marking every opposite candle as an order block. Right: Only blocks that led to a structure break count.
Wrong: Entering with no confirmation as soon as price touches the zone. Right: Wait for a reaction on a lower timeframe.

Pro tip: Blocks that form after a liquidity sweep and inside discount (for longs) have a better context than isolated ones.

Quiz

A bullish order block is usually: Answer: The last down candle before a strong move up. It is the last down candle before an impulsive move up that breaks structure.
What makes an order block more reliable? Answer: It led to a clear break of structure. A block that produced an impulse and a structure break shows real interest.
Where should the stop go for a long from a bullish block? Answer: Just beyond the low of the block. A close through the far end of the block invalidates it.

Educational content, not financial advice. Diagrams are illustrations, not real market data.