Smart Money

Order Blocks: Where Institutions Trade

7 min readTrading Reference Guide

What is an Order Block?

Order Block (SMC concept) = The area where large institutional orders were executed, creating a zone of strong buying or selling.

LargeSellBEARISH OBPrice rally UPOB ZoneSHORT ENTRY(Institutions selling again)

How Price Reacts

Institutions execute large orders → create a zone → often come back to this zone to add positions or exit → price frequently revisits these blocks