Order blocks: where the initiative changed hands
Reading a chart · OnlyTrade trading school
An order block is the last candle against the move that started a strong leg — the last down candle before a rally, the last up candle before a slide. The idea is that something large was worked there, and if price returns, the rest of that interest may still be waiting. Treat it as a zone with a reason rather than a magic line: the useful part is that it gives you a place to be wrong quickly — if price cuts through it, the story you built on it is over.
About this lesson
Written by the OnlyTrade team as a general explanation of a market mechanic. It uses no live market data.
Education, not investment advice. No method or result is guaranteed, and trading can lose money. Read the Risk Disclosure.