arrow_backBack to blog

Understanding Order Blocks in SMC

A two-minute walkthrough of what an order block actually is, and why retail traders keep drawing them wrong.

Understanding Order Blocks in SMC

An order block is the last bullish (or bearish) candle before a strong move in the opposite direction. Institutional desks tend to leave unfilled liquidity behind these candles — and price often comes back to take it.

SMC chart annotation
The last down-candle before a strong rally is your bullish OB.

Two things retail traders get wrong: marking the wrong candle, and trading the block without break-of-structure confirmation. Wait for the structure shift first — the entry comes after.

Share this article