Last opposing candle before displacement
An order block (OB) is often defined as the final down-candle before a strong up-move (bullish OB), or final up-candle before a strong down-move (bearish OB). Traders watch these zones for potential reactions — not guaranteed bounces.
Checklist
- Was there displacement (fast move) away from the zone?
- Did structure break in the direction of the move?
- Is price returning in a discount (for longs) or premium (for shorts)?
Combine with risk-to-reward rules — OB entries still need stops beyond the block.
Further reading on Trading Bite
Related partner resources
- DigitZero1 digital studio — websites, apps, AI platforms, graphics & SEO for trading brands
External partner links open in a new tab. Independent sites — not financial advice. Trading Bite does not control partner content.