Order Block

Definition

An order block is a specific candle (typically the last bullish candle before a strong bearish impulse, or vice versa) interpreted in ICT / Smart Money Concepts methodology as the price zone where institutional traders accumulated positions before driving price aggressively in the opposite direction. ICT practitioners use order blocks as anticipated reversal zones — if price returns to the order block after the impulse, they expect resumption of the impulse direction. Detection is rules-based (specific candle structure + impulse threshold), making order blocks one of the more codable ICT concepts for EA automation.