Order Block Retest Strategy: How to Find, Mark and Enter an Order Block
Forextity AcademyUpdated October 2026
An order block is the last opposite candle before a big move. This guide shows how to find it, why it matters, and the rejection candle to enter on.
What it is
An order block is the last opposite-coloured candle before an impulse that breaks market structure. For a bullish order block it is the last down candle before a strong rally; for a bearish one, the last up candle before a strong drop. Its high-to-low range is the zone traders watch when price returns.
Why it can work
The idea is that large orders were placed in that candle, and not all were filled before price left. On the return, remaining orders can produce a reaction. It works best when it caused a real break of structure and the block is still untouched.
The candles to expect
The block: the last opposite candle before the impulse.
The impulse: a strong candle (or two) that closes beyond the previous swing high (bullish) or low (bearish).
Fresh: no candle has closed through the block since.
Entry candle: price returns into the block and prints a rejection — a candle with a long wick back out of the block that closes in the trade direction.
Bullish setup: Order block retest
Order block: the last down candle before the impulse
Impulse breaks structure (a close above the previous high)
Price returns into the block and rejects: green candle with a lower wick. Enter here
Bearish setup (mirror image): Order block retest
Order block: the last up candle before the impulse
Impulse breaks structure (a close below the previous low)
Price returns into the block and rejects: red candle with a higher wick. Enter here
Step-by-step entry
Mark swing highs and lows to see the trend.
Find an impulse that closed beyond the last swing (a break of structure).
Mark the last opposite candle before it: that is the block.
Check no candle has closed through the block.
Wait for price to pull back into the block, ideally in discount (longs) or premium (shorts).
Enter in the middle of the block or on the rejection candle; stop just beyond the far side.
Target the nearest liquidity pool for 2R or more; risk 1% or less.
Stop and target
Stop: just beyond the far edge of the block (about 0.25 ATR of buffer). Target: the nearest liquidity pool (previous high / low, equal highs or lows) paying at least twice the risk.
Marking every opposite candle as an order block — only the one that caused a structure break counts.
Trading a block that price has already closed through.
Chasing the impulse instead of waiting for the return.
Taking blocks against the higher-timeframe trend.
Frequently asked questions
How is an order block different from a supply and demand zone?
They overlap. An order block is one specific candle tied to a structure break, while a supply or demand zone is a base of one to three candles before a strong move.
What if price never returns?
Then there is no trade. Do not chase.
Scan for it automatically
Choose this strategy in the Forextity scanner. It looks for the pattern on real candles, marks it on the chart, shows an example entry, stop, target and reward-to-risk, scores how many conditions are met, and lists the same steps with the same candle diagrams. You can also test it on your pair in the Strategy Backtester. High reward-to-risk strategies win less than half the time, so size every trade small and see the Stress Test.
