20/03/2026
Finding the best, high-probability order blocks (OB) involves identifying institutional footprints rather than just any opposite-colored candle. The best order blocks are generally found in the direction of the higher timeframe trend, following a significant structural break, and are unmitigated.
Here is the 3-step process to finding the best order blocks:
1. Identify Structure and Displacement
Establish Trend: Look at higher timeframes (4-hour or Daily) to determine the overall market direction (bullish or bearish).
Locate Break of Structure (BOS): Find where the price made a strong, impulsive move (displacement) that broke a previous high or low.
Identify the Origin: The "best" order block is the last opposing candle before this strong, impulsive move began.
Bullish OB: The last bearish candle before a strong move up that breaks structure.
Bearish OB: The last bullish candle before a strong move down that breaks structure.
2. Refine the Zone and Check Confluence
Refine the Zone: Drop to a lower timeframe (1-hour or 15-minute) to narrow down the zone. Instead of taking the whole candle, look for the specific area where the liquidity sweep or the start of the impulsive move occurred.
Check for Fair Value Gap (FVG): High-probability order blocks often have a "gap" or imbalance (FVG) immediately following them, indicating aggressive imbalance.
Check for Liquidity Sweep: The best blocks often swept liquidity (grabbed stop losses) just before the impulsive move.
3. Verify and Validate the OB (Unmitigated)
Unmitigated Status: Ensure the order block has not been touched or "mitigated" yet. A "fresh" or unmitigated block is much more likely to produce a strong reaction.
Wait for Retest: Do not trade the block until the price returns to it.
Lower Timeframe Confirmation (Entry): When the price returns to the zone, drop to the 1-minute or 5-minute chart (M1/M5) and wait for a change of character (CHoCH) or a small structure shift in your favor before executing the trade.
