Order Blocks: Where Institutions Leave Footprints
An order block is the last candle before a strong, impulsive move in price. It represents the area where an institution entered a large buy or sell order before driving price away.
Think of it like a fingerprint left at the scene.
- Bullish order block: The last bearish candle before a sharp move up
- Bearish order block: The last bullish candle before a sharp move down
When price retraces back into that zone later, it often reacts strongly — because institutions are defending their original position or re-entering at the same level.
Why this matters: Order blocks give you a precise entry zone instead of a vague “support area.” This is what separates ICT from generic price action trading.