Forex glossary
Order Block
An SMC order block is a zone selected from a candle or group of candles before a notable move, often the last opposite-direction candle. Zone boundaries and invalidation rules vary by method. It is an interpretation of price data rather than a direct measurement of pending orders or institutional positions.
Illustrative example
How does it work in practice?
Assume a bearish candle ranges from 100 to 102 before price rises to 108. A method marks 100–102 as a bullish order block; that label reveals neither who bought nor the actual quantity.
A case to work through
Body or complete range
A hypothetical candle has body=100–102 and full range=98–103.
- A body-based method marks 100–102; a full-range method marks 98–103.
- Price=99 is outside the first zone but inside the second.
What follows? State the method whenever assessing a retest or invalidation.
Example boundary: Implementer documentation describes its own convention; an OHLC zone does not reveal actual bank orders.
Implementer-specific boundaries
Text description of the diagram
- Body: A zone from the selected candle's open and close.
- Full range: A zone from that candle's high and low.
- Retest or breach: Classification depends on boundaries and the chosen rule.
A useful distinction
Order Block / Breaker Block
An order block is the initially marked zone; a breaker requires a later break under the chosen methodology.
Check your understanding
Compare two boundary conventions for the same candle.
Show the answer and explanation
Only inside the full-range zone
39 lies in 38–43 but not 40–42.
Market data and interpretation limits
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Related terms
Sources and documentation
- LuxAlgo – order blocks and breakers
This implementer's zone and breaker conventions, not evidence of participant identity.
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The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.