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Order Block
The last opposite-direction candle before a strong displacement move, read as a zone where institutions built positions.
What it is
An order block is the final down-candle before an impulsive rally (bullish OB) or the final up-candle before an impulsive drop (bearish OB). The theory: that candle is where large players accumulated, so a return to it often finds the same interest defending the zone.
Why it matters
Order blocks give you a precise, pre-defined zone for entries and stop placement instead of chasing the move after it leaves.
NQ example ILLUSTRATION
NQ's last red 5-minute candle at 15,420 to 15,435 precedes a 120-point rally. Two hours later price retraces to 15,430, holds, and resumes higher off the order block.