Backtestd / Concepts

Zones · Intermediate · 3 min read

Order blocks: the last candle before the move

The last opposite candle before a break of structure, and why SMC traders wait for price to return to it.

An order block is the last candle that went the other way before a strong move broke structure. For a bullish order block: the last red candle before price broke a swing high.

The SMC story: big players placed orders there, not all were filled, so when price comes back, the remaining orders push it again.

Interactive chart BTC/USDT · 4h
  1. 90 real 4h candles of BTC/USDT · Crypto (perpetual futures) · 2026-06-16 → 2026-07-01. The code found this example, not us: it is the most recent one in our data.
  2. First, a break of structure: a close above the swing at 64 560.
  3. The move started from here: the last red (down) candle before the break. Its range, 63 228 to 64 238, is the order block.
  4. 3 candles after the break, price returns to the block. SMC traders expect orders left there to push price up again.
  5. What happened next: 10 candles later, price was −5.8 % from the close of the marked candle. One example proves nothing; the test below counts thousands.

The checklist

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Quick check

Price breaks a swing high. Which candle is the bullish order block?

One example on a chart is not evidence. The box below is: it counts every trade our code took on years of data.

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Education about how markets and tests work. Not financial advice.