Points of Interest (POI)/
Order Block (OB)
TL;DR
An Order Block (OB) is the last opposing candle before a strong institutional displacement move. It marks the price range where Smart Money placed their orders — and where they are most likely to re-enter when price retests that zone.
How It Works
- 1
In a bullish scenario, the Order Block is the last bearish (red) candle before a strong upward displacement. Its body range (open-to-close) defines the OB zone.
- 2
In a bearish scenario, the Order Block is the last bullish (green) candle before a strong downward displacement.
- 3
The OB zone represents an area of unfilled institutional orders. When price returns to this zone, Smart Money absorbs the opposing pressure and relaunches the original move.
- 4
A valid OB requires a clear, impulsive displacement away from the candle — ideally creating a Fair Value Gap (FVG) in the process.
- 5
The OB is considered mitigated (invalidated) once price closes fully beyond the far side of its body range.
- 6
Higher-timeframe OBs carry more weight: a 4H or Daily OB providing confluence with a structural POI is significantly more powerful than a 5m OB in isolation.
In LiquidMind, standalone Order Blocks are not tracked as first-class POIs. Instead, the engine focuses on their high-conviction variants: the Extreme Fair Value Gap (EFVG) — which is precisely the zone where an OB and an FVG spatially overlap — and the Breaker Block, which is an OB that has been invalidated and flipped. This design ensures the algorithm only acts on OB zones that carry both an imbalance signature and institutional displacement confirmation, filtering out low-quality retests.