Master the "Institutional Entry Point." Learn to identify the specific candles where banks place their orders, creating powerful zones of support and resistance.
An Order Block is a specific area on a chart where institutions (banks/funds) have placed a large number of orders, causing the price to move aggressively away from that level. When price returns to this "block" in the future, it is highly probable that the institution will defend that zone to protect their position, often resulting in a sharp reaction.
Validation: The "Order Block" is only high-probability if the move that follows it is impulsive and breaks market structure.
Institutions often cannot fill their entire multi-million dollar position at once. When price returns to the block, they place the *remaining* part of their original order, which acts as a massive wall of demand or supply.
A high-probability Order Block is "fresh"—meaning price hasn't returned to it yet. Once price taps into the block and leaves, its validity drops significantly.