Order Blocks — where institutions actually buy
An order block is the last candle before a big push — the spot where institutions accumulated their position before they moved the market.
The simple definition
Look at any chart. Find a strong move up. The last red (down) candle before that rally is the bullish order block. Find a strong move down. The last green (up) candle before that drop is the bearish order block.
Why? Because that's where smart money was filling their position. When price returns to that zone later, the same buyers (or sellers) often defend it — making it an excellent entry zone.
How institutions use them
Big players can't buy a billion dollars of BTC at one price — they'd move the market against themselves. So they accumulate over hours or days in a range. The last candle before they "release" (push price) is where most of their fill happened.
Smart money doesn't forget that level. If price comes back, they often add or defend.
How we use them in signals
- SNIPER mode waits for price to return to a recent OB before entering
- Combined with a liquidity sweep through the OB = A+ setup
- Stop loss goes just past the order block — if the OB fails, the thesis is wrong
Common mistake
People draw OBs everywhere. Real OBs only matter at strong reaction levels — places where the move that followed was significant (3+ ATR). Random candles aren't OBs.