Smart Money Concepts
What is an order block?
5 min read · by Jérôme Le Menn
The order block is one of the most-used entry zones in SMC. The idea: the last opposite candle before a strong move would mark where large orders were placed — a zone where price could react when it returns.
Definition
A bullish order block is the last bearish candle before a marked bullish impulse. A bearish order block is the last bullish candle before a bearish impulse.
The SMC hypothesis: this zone holds unfilled institutional orders; when price returns (“mitigation”), it could set off again in the direction of the impulse.
How traders use it
You mark the order block zone, wait for price to return, then look for confirmation (a reaction, a CHoCH on a lower timeframe) before entering, with the stop on the other side of the block.
An order block is judged “stronger” if it caused a break of structure (BOS) and if it coincides with an FVG or a liquidity zone.
Limits to know
Identification is subjective: two traders will mark different blocks. This subjectivity makes the concept hard to test unless it's formalized with precise rules.
Like everything, an order block is only worth something if it produces positive expectancy over a large sample. Test it before trusting it.
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Start for freeFrequently asked questions
Order block or supply/demand zone: what's the difference?
The concepts overlap heavily. The order block emphasizes the last opposite candle before the impulse and the SMC structure/liquidity context.
Does an order block work every time?
No. No zone is 100% reliable. What matters is the combination of rules (structure, confirmation, risk management) and statistical validation.
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