Order Block

The Order Block identifies zones where institutional orders were likely placed before a strong move. These zones act as supply (resistance) or demand (support) areas where price often returns for a reaction.

Why It Matters

Order blocks represent areas where large players accumulated positions. When price returns to these zones, there's often remaining institutional interest, making them high-probability areas for entries. They're one of the most widely used concepts in Smart Money trading.

How to Use It

1. 1Drag the Order Block onto your canvas
2. 2Set the direction — bullish (demand zone) or bearish (supply zone)
3. 3Configure mitigation status and zone type
4. 4Connect it to a Wait block or Logic block

Settings Explained

Direction — Whether to detect bullish order blocks (demand zones below current price) or bearish order blocks (supply zones above current price). Bullish blocks suggest buying opportunities. Bearish blocks suggest selling opportunities.

Mitigation Status — Whether the zone has already been 'mitigated' (tested by price). 'Unmitigated' zones haven't been revisited yet and are considered fresher and more likely to produce a reaction. 'Mitigated' zones have been tested at least once.

Zone Type — Defines how the order block zone is calculated. Different zone types affect the size and precision of the area marked as the order block.

Look Back Mode — How far back the block searches for order blocks. A shorter lookback finds recent zones. A longer lookback finds historical zones that may still be relevant.

Example Use Case

You build a strategy that identifies unmitigated bullish order blocks on the H1 chart. When price returns to these demand zones, the strategy enters a long position with a tight stop loss just below the zone. The expectation is that institutional buyers will defend the level.