How Major Players "Read" the Market: Order Blocks and Imbalances in Practice

Every day in the market, the same scene unfolds: big players — banks, hedge funds — withdraw their money, while small traders look for a “good” entry point. But what if I told you how exactly this works?

Order Block: Where the Big Money Hides

An order block is not just an area on the chart. It’s a place where hundreds of millions of dollars are waiting for their moment. When you see a sudden change in price direction — for example, the price was falling and then suddenly spiked up — there is usually a “trace” area beforehand — right where the big players placed their orders.

How to recognize:

• Bullish block: the candle drops, then the price jumps up. The block is the zone of that candle’s wick.
• Bearish block: the candle rises, then the price crashes. The block is the zone of that candle’s body.

Imbalance: “Gaps” on the Chart That the Market Fills

An imbalance is a gap on the chart where the price simply “skipped” over a level. Imagine: there were sell orders at $100, then suddenly, instead of those, buy orders appeared at $105. The price soared, leaving behind an “unfilled gap” on the chart between $100 and $105.

Imbalances form because large players quickly execute big orders, leaving behind “empty” zones. And here’s the key: the market has a natural tendency to return and fill these gaps. It’s like a law of nature in the market.

How to Combine Them for Entry

Scenario:

1. Choose a chart — preferably 4H or 1D for beginners — less noise.
2. Wait for the price to fall into an order block.
3. Check: is there an imbalance nearby? If yes — the signal is stronger.
4. Place a buy order at the edge of the block, stop-loss below, take-profit at the next resistance zone.

Why Is This Important for Beginners

For months, beginners search for the “perfect indicator,” but the point is simply understanding where the big money is already sitting. If you know where the order block is located, you know where the prices might reverse.

3 rules to start:

• Practice on a demo account. Scroll through historical charts, find 10-15 examples of order blocks. You’ll notice a pattern.
• Combine with volume. If volume spikes sharply in an order block — that’s a real signal.
• Start with higher timeframes. 1M and 5M are like a casino for beginners due to noise. 1H, 4H, 1D are the standard.

Order blocks and imbalances are not magic; they are just an understanding of what most of the market’s money is doing. Learn to see this, and your trading will change.