The last opposing candle before a strong directional move — a zone where institutions likely entered.
An Order Block (OB) is the final down candle before a strong up move (bullish OB) or the final up candle before a strong down move (bearish OB). The theory: that candle represents the last moment large players accumulated or distributed before driving price, so when price returns to the zone, those same players defend it. Order blocks are primary Retrace zones in the RRR framework — after a Reveal, you look for the OB that created the move and plan your entry at its return.
Order blocks give you a specific, defensible zone for entries instead of 'somewhere around there.' Entry at the OB, stop beyond it — tight, defined risk.
Price drops hard from 5,845. The last green 5-minute candle before the drop spans 5,844–5,846. That's your bearish OB. When price retraces into it, you enter short. Stop above 5,846.50.
The order block is the zone where price should Retrace to after the Reveal. Mark it during structure, then wait for price to return and respect it before entering the Run.
The RRR Daily Trading Checklist — the exact morning routine LA Traders runs before every New York session. Free.
Open the Daily Checklist or Get the Free Checklist