Order block refers to the market activity of collecting orders from financial institutions and banks. Major financial firms and central banks control the foreign exchange market. As a result, traders must be cognizant of their market activities. When the market forms an order block, it moves in the direction of the majority of investment decisions.

While an order block seems to be a range, not all ranges are order blocks. People also have no notion when or where the smart money is heading. As a consequence, traders will seek a suitable order block based on the best price action and location. The following is an example of an order block: