LiquidityLevels
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Glossary

Order Block

LiquidityLevels Glossary

An order block is the last opposing candle before a strong, impulsive price move away from it — the last down-close candle before price rallies hard, or the last up-close candle before it drops hard. The logic: a move sharp enough to leave that candle behind suggests real size traded through the level, and that concentration of orders is treated as a spot worth watching if price ever comes back.

It's a narrower, more mechanical cousin of a supply/demand zone — one specific candle's range instead of a broader consolidation area. Traders who use precise, candle-based definitions reach for "order block"; traders thinking in wider areas reach for "zone." Both are pointing at the same underlying idea: where did the move actually originate.

Breaker block

A breaker block is what traders call an order block that fails — price returns to it and closes straight through instead of reacting. Same flip logic as an inverse fair value gap: the zone didn't hold in its original direction, so some traders relabel it and watch it as a level in the opposite direction going forward.

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