Lesson 1
What is an Order Block?
Last updated: 2026-09-28
Quick answer
An order block is the last opposite candle before a strong move that breaks market structure. SMC traders treat it as a zone where large orders were placed, and watch for price to return to it for an entry.
How to spot one
- •Bullish order block: the last down (red) candle before a strong move up that breaks a recent high.
- •Bearish order block: the last up (green) candle before a strong move down that breaks a recent low.
- •The move away from it should be fast and large, often leaving a fair value gap (Lesson 2).
How traders use it
- 1.Mark the order block’s high and low as a zone.
- 2.Wait for price to come back into the zone.
- 3.Look for an entry in the direction of the original move, with the stop just beyond the zone.
How the TebotechSignals engine uses it
Our engine does not trade an order block on its own. It adds points to a setup’s confluence score when an order block overlaps a fair value gap, after a liquidity sweep and a change of character. More confirmations, fewer random entries.
Common mistakes
- •Marking every candle as an order block. Only the one before a real structure break counts.
- •Trading against the higher-timeframe trend.
- •Using an order block that price has already returned to and broken through.
Educational content only, not financial advice. Trading forex and gold carries a high risk of loss.