I want to share something pretty interesting that many new traders haven't paid much attention to — that's the order block. It's actually a different way of looking at supply and demand, but it’s extremely useful if you know how to use it.

So, what is an order block? Simply put, it’s a price zone where you can find a good entry point for reversal or continuation trades. An order block is the last candle before a strong price move — it’s located near support or resistance. The concept isn’t complicated, but how it works is very important.

There are two types of order blocks you need to know. The first is the Bullish Order Block — this is a bearish candle that appears near support, just before a strong upward move. The strong candle after it is usually a Bullish Engulfing. The second is the Bearish Order Block — this is a bullish candle near resistance, followed by a sharp decline, often a Bearish Engulfing.

The trading approach is quite straightforward. When you identify an order block in an uptrend, wait for the price to return to that zone to enter a buy. Conversely, in a downtrend, wait for the price to touch the order block to sell. Your entry, stop loss, and take profit are set according to the structure of the candle.

But it’s not always possible to trade every time. You need to understand the market structure clearly — that’s the key to knowing when an order block is reliable and when it’s not. Dow Theory also helps a lot here.

In summary, an order block is a strong supply/demand zone that you can leverage. It helps improve your trading skills by pointing out effective entry opportunities and price zones that significantly influence trader psychology. Buy at Bullish Order Blocks in an uptrend, sell at Bearish Order Blocks in a downtrend — that’s the simplest way.

This is just a knowledge sharing, not investment advice. Everyone should do their own research and develop their own method.