Order Block — what it is and how to use it in trading
Definition
An Order Block is the last opposite-colored candle before a strong impulsive move; its body is treated as the zone where large market participants likely acted. A bullish Order Block is the last bearish (red) candle before a sharp rally.
How it works in the builder
In the builder, order_block_bull/order_block_bear returns the boundary of the nearest active order block, with left/right parameters (swing confirmation) and max_age (how many bars the zone stays valid). price_in_ob_bull/price_in_ob_bear is a boolean flag for price returning into that zone.
What it looks like on the chart
The zone is drawn as a rectangle over the candidate candle's body — open to close, no wicks (unlike an FVG). Charts often show several nested Order Blocks of different ages; the nearest untested one is treated as the active one.
Typical use
An Order Block is often paired with a CHoCH as reversal confirmation: price_in_ob_bull == 1 together with choch_up == 1 — price returned into the buyers' zone right after the first sign of a trend change.
Common pitfalls
Not every candle before a move is a valid order block — without a structure confirmation (BOS/CHoCH) the zone can turn into an arbitrary line drawn in hindsight. Like an FVG, an Order Block alone doesn't guarantee a reaction — price can blow through it without stopping, especially on news-driven moves.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.
Bullish Order Block
Block variants
Bearish Order Block
Price in Bullish OB
Price in Bearish OB