What is an order block?

An order block is the last down candle before a strong up move (a bullish order block), or the last up candle before a strong down move (a bearish order block). It marks the zone where institutions accumulated orders before pushing price.

How to identify it

Look for a strong, impulsive move (a displacement). The opposite candle immediately before that impulse is usually the order block. The cleaner and more impulsive the following move, the more reliable the zone.

How to trade it in binary options

When price returns to the order block, wait for a reaction (a rejection or candle pattern) and enter in the direction of the original impulse: CALL on a bullish order block, PUT on a bearish one.

💡 Tip

Combine order blocks with nearby fair value gaps for higher-probability entry zones.