Order blockOBIntermediate
The last opposite-colour candle before a strong move, seen as the zone where large orders entered.
What it means
A bullish order block is the last down candle before a strong rally that breaks structure. Traders expect price to return to it and react.
The stronger and cleaner the move away from it, the more weight traders give it.
How to spot it
- Find a strong move that breaks structure.
- Go back to the last candle of the opposite colour before it started.
Common mistakes
- Marking any down candle as an order block, with no displacement or break after it.
- Ignoring higher-timeframe direction.
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 backtest.
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.
Related terms
What a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.