🎯 STRATEGY
Order Blocks (SMC)
Smart Money Concepts tool that marks the last opposing candle before a strong displacement move as an institutional order block — a zone likely to act as future support or resistance.
310KUses
29800Likes
0Comments
Live Demo — Order Blocks (SMC) applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is Order Blocks (SMC)?
A Smart Money Concepts (SMC) tool highlighting candles believed to represent large institutional orders — the last candle moving against the direction of an impending strong move, on the theory it marks where big players accumulated before price displaced sharply away.
How It Works
- Scans for displacement moves: a run of candles with unusually large range/momentum in one direction.
- Looks back to the candle immediately preceding that displacement moving in the opposite direction.
- That candle's range is marked as the order block zone — bullish blocks below price, bearish blocks above.
- The zone persists until price returns and either respects it or closes through it (mitigation).
Parameters
Uses the chart's default displacement-detection settings; no user-configurable lookback beyond the chart's timeframe/history range.
Signal Interpretation
- Price returning to a bullish order block and reacting upward suggests active buy-side interest.
- Price returning to a bearish order block and reacting downward suggests active sell-side interest.
- A decisive close through a block signals it has been mitigated.
- Fresh blocks on high-volume displacement moves are generally more reliable.
- Blocks aligning with Fair Value Gaps or AI S/R levels represent higher-confluence zones.
Tips & Best Practices
- Treat blocks as zones, not exact lines.
- Prioritize the most recent, unmitigated blocks.
- Combine with Market Structure to confirm the broader trend context.