What it looks like
Bullish: find a move up that broke the last swing high. The last down candle before that move is the order block. A retest is price later coming back into that candle's range and holding. Bearish: find a move down that broke the last swing low; the last up candle before it is the block, and price returns to it and holds.
What it means
Price has come back to the last place one side was active before the other side took over and broke the structure. Large orders are often left waiting there, so the block can act as a floor (bullish) or ceiling (bearish) on the return.
Bullish and bearish versions
How to trade it
- 1
Find a move that broke structure (a close beyond the last swing high or low) and mark the last opposite candle before it: that is the block.
- 2
Wait for price to come back to the block. Bullish: buy at the retest. Bearish: sell at the retest.
- 3
Put the stop just below the block (bullish) or just above it (bearish).
- 4
Aim for the high (bullish) or low (bearish) the original move made.
- 5
Example: on the US30 15 minute chart a rally breaks the last swing high; the last down candle before it is 35 points tall. Price returns to it and holds, you buy with a stop just under the block and aim for the rally's high.
Bullish: a close below the block. Bearish: a close above the block.
Where it works best
On the first return to a fresh block, in the direction of the break, on 15 minute to 4 hour charts.
WickSpeak finds the order block retest automatically on any chart and names it on the candles that made it. It writes what it is, how to trade it and what proves it wrong right on the chart. Playbook can use it, or any of the 146 patterns, as a condition alongside up to 12 conditions on any of 12 timeframes, and backtest the play on past candles with your costs.
Common mistakes
- Marking any opposite candle as a block when no structure was broken.
- Trading a block that has already been tested several times.
- Placing the stop inside the block instead of just beyond it.
Related patterns
Questions traders ask
What is an order block in trading?
It is the last opposite candle before a move that broke the market's structure. A bullish order block is the last down candle before a break above a swing high.
Why do order blocks work?
They mark the last place one side was active before the other took over. Large orders are often left waiting there, so price can react when it returns. It is not guaranteed, which is why the stop sits just beyond the block.
What is the target on an order block retest?
WickSpeak aims for the high the original move made (bullish) or its low (bearish). From there you can trail or take profit.
What cancels an order block?
A close through it: below the block for a bullish one, above it for a bearish one. The waiting orders have then been used up or were never there.