What information does an Order Block provide in this approach?

What information does an Order Block provide in this approach?

• A. A price range where orders were filled previously
• B. A sign of immediate profit
• C. A zone with no liquidity
• D. A trigger for stop losses

Answer: (A)

An order block shows the price range where institutional orders were filled in the past. It marks a zone where heavy buying or selling activity occurred, leaving behind resting liquidity and a footprint of demand or supply. Because those orders were executed there, that price area often becomes a place where the market reacts again if price revisits, making it a useful reference for potential support or resistance. So the information an order block provides is the price range that previously absorbed orders. It’s not a guarantee of immediate profit, nor a zone with no liquidity, and it’s not specifically a trigger for stop losses. Those are separate ideas; the block’s value lies in indicating where significant past order activity and liquidity existed.

An order block shows the price range where institutional orders were filled in the past. It marks a zone where heavy buying or selling activity occurred, leaving behind resting liquidity and a footprint of demand or supply. Because those orders were executed there, that price area often becomes a place where the market reacts again if price revisits, making it a useful reference for potential support or resistance.

So the information an order block provides is the price range that previously absorbed orders. It’s not a guarantee of immediate profit, nor a zone with no liquidity, and it’s not specifically a trigger for stop losses. Those are separate ideas; the block’s value lies in indicating where significant past order activity and liquidity existed.