Order block strategy explainedIntermediate
Trading returns to the last opposite candle before a strong move.
The idea
An order block marks where a strong move started. The assumption is that unfilled orders remain there, so price often reacts when it returns.
The rules
- Find a strong move that breaks structure.
- Mark the last opposite-colour candle before it.
- Trade the first return into that zone, only in the direction of the trend.
- Stop beyond the block or by ATR, target a fixed R or the next liquidity.
Variations traders use
Requiring displacement or a fair value gap next to the block, using only higher-timeframe blocks, or waiting for a lower-timeframe confirmation inside the block.
What testing shows
Plain order block retests with a trend filter are usually break-even after costs. That is the classic case where the trader's selection, not the pattern, carries the edge.
What it looks like on a real chart
Picked automatically from the backtest on real data: the latest winner and the latest loser. The numbered circles are the steps of the rules, in order. Losers are part of every strategy.
How WickCheck tests it
Buy when price returns into a bullish order block and price is above the 200 EMA. Sell when price returns into a bearish order block and price is below the 200 EMA. Stop at 1.5x ATR. Target 2.5R.
Open these rules in WickCheck, change any word and run them in seconds. No code.
Full results on 5 markets: Order block strategy explained.
Write your rules in plain words and test them on real data in seconds.
Popular strategies explained
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.