Market Structure & Liquidity · Entry 47 of 71

What Is Order Block?

The footprint of massive institutional capital positioning

Core Definition

An Order Block is a price zone where large institutional buying or selling previously occurred, often leading to a strong, impulsive move in the market.

Key Mechanics

• It represents an area where "smart money" entered massive limit orders, and some of those orders remain unfilled.
• When price eventually returns to this zone, it often reacts strongly again as unfilled orders are triggered.

In simple terms

It's a high-probability reaction area where big players placed significant orders.