Order-block and imbalance: what is really happening behind the scenes of the chart

Most beginners look at charts without understanding what exactly is depicted on them. Meanwhile, big players leave traces behind — and these traces can be read.

Order block: where the “whales” sit

Order block is an area where banks and large funds have opened positions. When you see the price suddenly reverse, it often means that something was entering here. And correctly so — it was them.

How it looks:

• A few candles are going in one direction
• Then suddenly a turn
• The place where the turn began is the order-block.

Two main types:

• Bullish — buying zone before the rise
• Bearish — a selling zone before a decline

Imbalance: “gaps” on the chart

Imbalance is where demand or supply has outweighed to such an extent that a gap has emerged. The market does not like gaps — it always returns to fill them.

It's like if pages fell out of a book: the reader will want to read them. The same goes for prices — they will return to these gaps.

How to use this for beginners

1. We enter together with the “whales”

• Find the order block
• Wait for the price to return to it.
• Enter there

2. Attention to Disbalance

• If the imbalance matches the order block — the signal is strengthened.
• This means that big players are going there too.

3. Stop-loss and profit

• Stop below the order block
• Profit at the next resistance level

To not mess up

• Study historical charts — they are full of examples.
• Combine with volume, Fibonacci, trend lines
• On small timeframes (1M, 5M) blocks form frequently, but the signals are weak — beginners are better off with 1H, 4H, 1D.
• First, practice on the demo

The essence is simple: order blocks and imbalances are the footprints of large players on the chart. Learn to read them, and you will enter not blindly, but alongside those who truly have money.