Order blocks are commonly used by price-action traders to mark areas associated with strong directional movement and potential institutional activity. Like every chart concept, they need context.
What is an order block?
Definitions vary between strategies, but an order block generally refers to a candle or price area that traders associate with the origin of a meaningful move. Traders may watch that area if price returns later.
Why location matters
An order block in the middle of random price action is different from one that aligns with higher-timeframe direction, liquidity and a clear structural shift.
Why order blocks fail
Price is never required to respect a marked zone. Areas can be traded through, invalidated or ignored. That is why stop-loss placement and confirmation remain important.
Order blocks inside NGF Gold
NGF Gold includes order blocks as one factor alongside 4H and 1H alignment, Silver alignment, liquidity, Break of Structure, Fair Value Gap overlap, Market Structure Shift and volume.
Related: Fair Value Gaps Explained and Liquidity Sweeps Explained.
Trading involves risk. Order blocks are analytical zones, not guaranteed reversal levels.