Wick

Bullish vs bearish order blocks

Order Blocks & Premium/Discount

Support below, resistance above

A bullish order block sits below price and marks potential support, the last down candle before an up move. A bearish order block sits above price and marks potential resistance, the last up candle before a down move.

It's a zone, not a price

Traders mark the order block's full range, from its high to its low, as the zone of interest, not just a single price. Price returning anywhere inside that range can react.

Traded through means weaker

Just like a fair value gap, an order block that already got fully traded through and closed beyond usually loses its power to act the same way twice.

Check yourself

A bearish order block is…

  1. The last up-close candle right before a strong drop correct
  2. The last down-close candle right before a strong drop
  3. Any candle after the drop already happened

It's the final up candle before sellers take clear control and price drops hard.

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