What is Order Block?
Order Block is a core concept in currency trading.
In Smart Money Concepts, the last opposing candle before an aggressive displacement move, representing where institutional buy or sell liquidity was accumulated.
Understanding Order Block helps you manage your risk and spot high-probability trade setups.
Why It Matters for Forex Traders
In forex trading, Order Block helps you protect your capital. It gives you a clear rule to follow instead of guessing.
How to Identify and Apply Order Block
- 1Spot and mark Order Block on your chart during active trading hours.
- 2Check that the overall market trend agrees with your trade idea.
- 3Always place a protective stop loss before entering any position.
Practical Forex Example
For example, on a EUR/USD trade, applying Order Block allows you to set clear entry and exit points before risking real money.
PRO TRADER TIP
Always test strategies involving Order Block on a free demo account first before trading with real capital.