I have learned quite a few price analysis methods, but the Order Block is one of the most powerful tools I have ever used. Today, I want to share what an OB is and how to apply it to crypto trading.

Simply put, an Order Block is a price zone where large traders have accumulated orders previously. When the price returns to this zone, strong movements often occur. It differs from supply/demand in that OB focuses on specific candles—the last candle before a breakout.

I realize that what an OB actually is, is a way to find good entry points for two types of trades: reversal or trend continuation. The identification method isn't very complicated. A Bullish Order Block (BuOB) is the last bearish candle near the support level before a strong upward move. Conversely, a Bearish Order Block (BeOB) is the last bullish candle near resistance before the price drops.

When I trade, I usually wait for the price to return to this OB. If it's a BuOB in an uptrend, I will enter a buy order. If it's a BeOB in a downtrend, I sell. The engulfing candle that appears afterward is often a very good confirmation signal.

But an important thing is that you must understand market structure. Not every OB works effectively all the time. It’s only strong when the price is in a clear trend. If the market is consolidating, OBs may not be very reliable.

In fact, what an OB is not just a tool; it’s also a way of viewing the market. When you understand OB, you'll see that these price zones truly influence trader psychology. That’s why I always keep an eye on them.

In summary, an Order Block is a strong supply/demand zone formed by specific candles. Buy into Bullish OB during an uptrend, sell into Bearish OB during a downtrend. But remember, this is just a supporting tool, not investment advice. Every trader should find a method that suits themselves.