Smart Money’s Favorite Hide-and-Seek Spot
Introduction: Ever Wonder Where the Big Players Buy?
You might think trading is just about support, resistance, and whether your favorite influencer says “bullish.” But behind the scenes, there’s a game of chess going on—played by institutional traders with deep pockets and smarter entries.
That’s where order blocks come in. They’re the subtle footprints left behind by banks, hedge funds, and other institutional players who aren’t just randomly entering trades. They’re executing large orders—quietly, methodically—and leaving clues.
This is one of the concepts that SilverBullsFX focuses on with their students. They specialize in teaching everyday traders how to think like smart money—not trade against it. Order blocks are a key part of that puzzle, and if you learn how to spot them, you’ll stop chasing trades and start anticipating them.
Let’s break it down step by step.
What Is an Order Block?
The Simple Definition
An order block is a zone on the chart where institutional traders have placed large buy or sell orders. These blocks often mark areas where the market reverses or pauses—because big money is active there.
Think of it as a “last stop” before a major move. Institutions often make one final push against the direction they want, to trap retail traders and collect liquidity—then they drive the market the other way.
In Plain English
Imagine you’re a big bank trying to buy a ton of Euros. If you buy all at once, you move the market and get a bad price. So instead, you:
- Sell a little to create bearish pressure
- Wait for retail traders to jump in short
- Then buy everything at a better price while the market drops
- Once you’re filled, reverse the move and push the price up
That initial sell zone? That’s the order block.
Where to Find Order Blocks on the Chart
Order blocks usually form right before a strong move in the opposite direction. There are two main types:
1. Bullish Order Block
- Appears at the bottom of a downtrend
- Last bearish candle before a big bullish move
- Signals possible buy zone for future retests
2. Bearish Order Block
- Appears at the top of an uptrend
- Last bullish candle before a big bearish move
- Signals possible sell zone for future retests
The idea is: if price returns to that zone later, the market may react again. Why? Because institutions often re-enter or defend their previous positions.
How to Spot Order Blocks (Without Drawing Random Boxes)
Here’s a simple 3-step process:
- Identify a strong move
Look for a sharp shift in direction—especially with large candles or volume. - Mark the last opposite candle before the move
This is your potential order block zone. - Refine it using wicks and structure
Use the open and close of the candle—or the wick, depending on the timeframe—for precision.
Of course, it’s not always that easy. There’s nuance. That’s why the team at SilverBullsFX has an entire free video guide dedicated to order blocks. It’s beginner-friendly and walks through real charts, how to draw the zones, and how to filter out the junk ones. If you want to go from “kind of seeing it” to “actually using it,” it’s a great place to start.
Example: Bullish Order Block in Action
Let’s say EUR/USD was dropping, then suddenly shoots up 100 pips.
- You zoom in and find the last bearish candle before that big bullish move.
- Price later retraces to that candle’s zone and stalls.
- A bullish engulfing candle forms inside the block.
- Boom—you’ve got an entry with context, structure, and a logical stop-loss just below the zone.
That’s not prediction. That’s probability—and structure-based trading.
How to Trade Using Order Blocks
Here’s a simple method:
- Wait for price to return to the block
Don’t chase the move. Let price come to you. - Look for confirmation
Use a candlestick pattern (like a pin bar or engulfing) to confirm the reaction. - Place your stop below (or above) the block
This keeps your risk defined. - Set a realistic target
Aim for 1:2 or better. Structure-based take profits work well (next support/resistance).
Pro tip: Combine order blocks with market structure and liquidity zones to improve your accuracy. Institutions love hunting for stops—don’t let yours be the bait.
Common Mistakes Beginners Make
❌ Drawing Every Candle as an Order Block
Not every reversal candle is an order block. Focus on significant moves, not every swing.
❌ Entering on First Touch, No Confirmation
You’re not a bank. Wait for signs of reaction before jumping in.
❌ Using the Concept Without Understanding Context
Order blocks work best when combined with trend, structure, and smart risk.
Conclusion: Stop Following, Start Anticipating
Order blocks are one of the cleanest ways to understand how the “smart money” operates. They help you shift from emotional, reactive trading to structured, patient entries based on logic.
They won’t win every time—but they’ll give you a serious edge once you understand how to use them properly.
And if you want to take it further, SilverBullsFX offers a free beginner course that covers this exact topic in more depth, plus free trading signals and 1:1 beginner coaching. It’s a solid way to fast-track your understanding without drowning in conflicting strategies.
So stop guessing where the market might go. Learn to follow the footprints of those who already know.
