advanced · TRADING LEARNING GUIDE
Order block conventions
What is this concept?
An order-block label often marks a selected candle before an impulse. Definitions vary. A price candle cannot prove institutional orders or a universal profitable zone.
Step by step
Define the impulse threshold and whether the zone uses body or full range. Confirm with data available at the time; record invalidation and expiry.
From observation to decision
Record the instrument, venue, session and timeframe. Classify the observation using the definition, then write at least one alternative interpretation. Decide what evidence would invalidate your idea before entry. Mark missing information explicitly. Examples are hypothetical. Collect paper observations, including failures. Include fees, spread, slippage and timestamp alignment when measuring outcomes. Recognizing a chart shape and establishing a profitable trading rule are separate tasks.
Worked example
A bearish candle O101 C100 H102 L99 before an impulse of at least 3 can define candidate range 99–102 or body 100–101. These are different zone rules.
Common mistakes and limits
Avoid treating a label as proof of institutional demand or switching zone definitions to fit outcomes.
Practice
Compare body and full-range zones on the same fixed sample, including invalidated and expired cases.
Resources and further reading
These sources explain definitions and underlying mechanics. Worked examples are original illustrations; a source does not establish the profitability of a custom pattern.
Further reading / foundational context. Worked examples on this page are original illustrations, not source performance claims.
Further reading / foundational context. Worked examples on this page are original illustrations, not source performance claims.