Understanding Block Orders and Order Blocks in Trading

Got confused about block orders disappearing from your charts? Here's what you need to know. Block orders—those substantial limit orders placed at key price levels—often get hidden from standard order book displays. Exchanges use this feature to prevent market manipulation and reduce front-running risks.

But here's where order blocks come in. In technical analysis, order blocks refer to price zones where significant institutional buying or selling previously occurred. These areas act as support or resistance levels, and smart traders use them to predict future price action.

The trick? Learn to identify where these blocks form during market moves, especially on higher timeframes. When price returns to these zones, you'll often see rejection or breakthrough patterns. Track accumulation areas after sharp sell-offs, and distribution zones after strong rallies—that's where the real opportunities hide.

Start mapping order blocks on your 4H or daily charts. You'll spot patterns others miss.