What is an order block?
An order block is where big players likely left orders before a sharp move. Learn bullish and bearish order blocks on Indian F&O stocks, in pictures.
Most of a chart is noise. But a few places on it are different. These are the places where big players, funds that trade lakhs of shares at a time, likely left their orders. Traders call them order blocks. Once you can see them, a chart stops looking random.
This guide explains them in plain words and pictures. No maths, and every new word is explained.
What is an order block in trading?
An order block is the last red candle before a strong rise, or the last green candle before a strong fall, when that move closes beyond a recent high or low. It marks the zone where big players likely placed large orders. Price often comes back to that zone before it moves on.
In a bullish order block, the candle is red and the strong move after it is up. In a bearish order block, the candle is green and the strong move after it is down. The name comes from the move, not from the candle's colour.