Order Block Pattern
The last opposing candle before a strong impulsive move—an institutional supply or demand zone where smart money orders are believed to remain.
Quick Answer
The last opposing candle before a strong impulsive move—an institutional supply or demand zone where smart money orders are believed to remain.
What Is the Order Block Pattern?
An Order Block (OB) is a core Smart Money Concepts (SMC) and ICT pattern. It marks the final bearish candle before a bullish displacement (bullish OB) or the final bullish candle before a bearish displacement (bearish OB). Price often returns to these zones for liquidity before continuing in the original direction. VaultCharts can detect order blocks automatically and use them in ICT/SMC trade signal logic.
How the Order Block Forms
- 1Identify a strong impulsive move (displacement) in one direction
- 2Mark the last opposing candle before the impulse began
- 3The body of that candle defines the order block zone
- 4Wait for price to retrace into the zone
How to Confirm the Pattern
Best Timeframes for Order Block
How to Trade the Order Block
- →Identify high-probability entry zones in SMC/ICT trading
- →Combine with fair value gaps for confluence entries
- →Set stops beyond the order block boundary
- →Filter trade signals by order block quality
Common Mistakes to Avoid
Detect Order Block Automatically
VaultCharts automatically detects Order Block patterns on your charts. No manual analysis needed - the pattern is highlighted with entry zones and targets.