Order block (OB)

Example

Say a stock prints a red candle that opens at $55.40 and closes at $54.80, then rallies hard to $59.00, closing above the last swing high at $57.50. That red candle is a bullish order block, and traders mark its body, $54.80 to $55.40, as a zone to watch if price comes back. Without the close above $57.50, it would be just another red candle.

Hypothetical numbers, for illustration only.