Order Block

An Order block in price action or within a market makers profile, is a defined area where the buyers or sellers of smart money entered the market in a substantial way, moving price away from its price level to a new area of interest. The market is engineered by smart money by means of creating levels within the market place for them to use at a later date and time. A bearish order block low is a bullish candle prior to the move down, a bullish order block is the high of a bearish candle prior to the move up. These following charts show you the visuals of it. When you understand how market makers move the markets and where they want to get to in price, utilizing the order blocks within your range, will give you precision high confidence entry points.