What is Order Block? How to Identify and Trade with Order Blocks in Crypto Markets

What are Order Blocks?

Order blocks offer a fresh take on supply and demand zones. They're pretty useful. Traders who get comfortable with order blocks tend to level up their game in two main ways:

• Spotting those sweet reversal entries
• Finding price zones that mess with trader psychology

An Order Block is basically a zone. Good for reversals. Good for continuations too.

• It's the final bearish or bullish candle sitting near Support/Resistance right before price makes a serious move.

Simple concept. Big impact. Easy to spot once you know what you're looking for.

How to Identify and Trade with Order Blocks?

Two flavors exist:

• Bullish Order Block (BuOB)
• Bearish Order Block (BeOB)

Bullish Order Block (BuOB)

Look for the last bearish candle near support. Price jumps up after this. Uptrends have these.

The next candle? Often a big green one. Kinda like a Bullish Engulfing thing.

Bearish Order Block (BeOB)

Find that last bullish candle near resistance. Price drops afterward. These show up in downtrends.

Next candle tends to be a nasty red one. Seems like it's usually a Bearish Engulfing pattern.

When to Trade and When Not to Trade Order Blocks?

This gets tricky. Market structure plays a huge role here.

Dig into market structure! Dow Theory too. Not entirely clear without those pieces.

Conclusion

• Order Blocks matter. A lot.
• They're supply demand zones on steroids
• See a Bullish OB in uptrend? Maybe buy.
• Notice a Bearish OB in downtrend? Think about selling.

Based on market data from September 2025, Order Block strategies have blown up in crypto trading circles. The concept stays relevant as institutions pile into crypto. These institutional footprints (Order Blocks) seem increasingly important for retail folks trying to follow "smart money" moves.