How do you spot an OB?

How do you spot an OB?

• A. The order block is the move prior to the expansionary move that broke structure.
• B. The order block is the move before the expansion that preceded the break of structure and is identified on lower timeframes.
• C. OBs are only seen on weekly charts.
• D. OBs are identified by volume spikes alone.

Answer: (B)

Spotting an order block comes from recognizing the move that sits just before a sharp expansion that breaks the current price structure. The key idea is that institutions often place orders in the last smaller move, and then when liquidity hits, a strong expansion follows that breaks the prior highs or lows. That block is best identified on a lower timeframe because it pinpoints the exact price range where those orders were likely placed, giving you a precise zone to watch for retracements or entries. This is why the correct description is that the order block is the move before the expansion that preceded the break of structure and is identified on lower timeframes. It captures the sequence: small move builds liquidity, a larger move expands and breaks structure, and the OB helps you anticipate where price may return. Common misconceptions to avoid: OBs aren’t restricted to weekly charts; they can appear on multiple timeframes, and they aren’t determined by volume spikes alone—theimmediate price structure and the prior move matter more for locating the block.

Spotting an order block comes from recognizing the move that sits just before a sharp expansion that breaks the current price structure. The key idea is that institutions often place orders in the last smaller move, and then when liquidity hits, a strong expansion follows that breaks the prior highs or lows. That block is best identified on a lower timeframe because it pinpoints the exact price range where those orders were likely placed, giving you a precise zone to watch for retracements or entries.

This is why the correct description is that the order block is the move before the expansion that preceded the break of structure and is identified on lower timeframes. It captures the sequence: small move builds liquidity, a larger move expands and breaks structure, and the OB helps you anticipate where price may return.

Common misconceptions to avoid: OBs aren’t restricted to weekly charts; they can appear on multiple timeframes, and they aren’t determined by volume spikes alone—theimmediate price structure and the prior move matter more for locating the block.