Weekly commentary 4

Question 1

What is an order block?

Answer 1

An order block is the last down candle before the upward change in market structure, or the last up candle before the downward change in market structure.

Question 2

What’s significant about an order block?

Answer 2

Price will generally respect the opening of an order block, or price will trade into 50% of the order block.

So expect price to react to the opening of the order block candle, or the 50% point.