What makes an order block valid

Order Blocks & Premium/Discount

Displacement is required

Not every last-opposite-candle counts. A valid order block needs real displacement right after it, a strong, fast move that leaves an imbalance or a break of structure behind.

Gap and structure break add weight

An order block with no fair value gap and no break of structure after it is a weak candidate. The strongest order blocks usually have both a gap and a structure break stamped right after them.

Filtering beats marking everything

Marking every single opposite-color candle on the chart as an order block creates dozens of low-quality zones. Filtering for real displacement keeps only the ones worth watching.