---
title: 'Order Block Trading: How to Enter, Set Stop/Profit for Beginners'
source: 'https://youtube.com/watch?v=NNcDx_v2BFw'
video_id: 'NNcDx_v2BFw'
date: 2026-08-04
duration_sec: 1317
---

# Order Block Trading: How to Enter, Set Stop/Profit for Beginners

> Source: [Order Block Trading: How to Enter, Set Stop/Profit for Beginners](https://youtube.com/watch?v=NNcDx_v2BFw)

## Summary

This video explains the concept of an order block in trading, a key element of Smart Money Concepts (SMC) and ICT. The presenter, Kirill, defines what an order block is, how to identify it on a chart, and provides three essential rules for a valid order block. He also details entry points, stop-loss and take-profit placement, and introduces a bonus concept combining order blocks with imbalances (Fair Value Gaps) for higher-probability setups.

### Key Points

- **Definition of Order Block** [00:35] — An order block is the last candle of the opposite close before a strong move. It represents the accumulation of large orders by institutional players before an impulse.
- **Displacement Requirement** [02:19] — There must be a strong displacement (impulse) after the order block candle. Without displacement, it is not a valid order block.
- **Finding Bullish Order Block** [02:32] — A bullish order block is the last bearish candle that closes down before a sharp upward move. It often forms near support levels.
- **Finding Bearish Order Block** [03:16] — A bearish order block is the last bullish candle that closes up before a sharp downward move, often forming near resistance levels.
- **Relationship with Mitigation Block** [03:56] — A mitigation block will always have an order block, but not every order block will have a mitigation block.
- **Rule 1: Displacement Size** [04:34] — The displacement must be at least twice the size of the order block candle itself.
- **Rule 2: Match Your Bias** [05:14] — The order block must align with your overall market bias. For example, in a bullish bias, only take bullish order block setups.
- **Rule 3: One Candle or Series** [06:15] — If several candles close in the same direction consecutively, they can be treated as one order block. If a candle closes in the opposite direction, only the last candle is considered.
- **Entry Model** [07:24] — Entry is taken from the opening of the order block candle to 50% of its body. For bullish, from open to 50% up; for bearish, from open to 50% down.
- **Stop-Loss Placement** [08:07] — Stop-loss is placed behind the order block, beyond the nearest low (for bullish) or high (for bearish).
- **Take-Profit Strategy** [08:35] — Take-profit is set at the next logical high or low. It is advised to close 80% at the target and let 20% run with a trailing approach.
- **Avoid Moving Stops** [10:43] — Do not move stop-loss or take-profit based on emotions. If analysis is wrong, close the trade entirely.
- **Chart Example: Bullish Order Block** [12:00] — Shows a bullish order block forming after a low, with displacement twice the size, then a return to the zone and a move up.
- **Chart Example: Multiple Candles** [13:14] — Demonstrates how several consecutive bullish candles can form one order block, with displacement and subsequent move up.
- **Bonus: Order Block + Imbalance** [14:31] — Combining an order block with an imbalance (Fair Value Gap) creates a higher-probability setup. The price often returns to fill the imbalance before continuing.
- **Chart Example: Bearish Order Block** [16:35] — Shows a bearish order block forming after a local high, with price returning to the zone before moving down.
- **Practice Recommendation** [19:11] — The presenter strongly recommends practicing by finding 10 order block examples on a chart to internalize the concept.

### Conclusion

Order blocks are a powerful tool for identifying institutional trading zones, but they must be validated with displacement, bias alignment, and proper risk management. Practice is essential to master this concept and integrate it into a broader trading system.

## Transcript

the point is right, you put a stop and you don't know if it's far enough.  The price turns around and you don't understand why it's there.  Well, this is trading without a system.  Today I will tell you about Oordrblock.  It solves all three problems, and
you can find more information on trading in my Telegram channel and free trading community. I recommend subscribing, link [music] I recommend subscribing, link [music] in the description.  Well, now let's get down to business.
orderб.  The structure of today's video will be first, we will talk about what an order block is.  Next we will discuss how to find an order block on a chart.  Third, three rules without which orderrblock will not work.  Fourth, how to
enter correctly, where to set stop-loss and take- profit. Also a bonus.  Be sure to watch this video to the end.  I'll show you a connection where there will be an order block plus imbalance or Fair [music] Value Gup.  These are higher
probability setups. Briefly about me.  My name is Kirill.  I have been Dubai for the same amount of time.  [clears throat] I trade on SMC, ICT.  SMC is a smartoney concept.  ICT is a sub-field.  And I trade currency pairs.  This is Forex,
also gold and crypto.  What we will discuss today applies to all markets.  Well, let's get started.  What is an order block?  Let's start with the definition.  An order block is the last candle of the opposite close before a
strong move.  Well, actually, it's like this. Now let's start with a general theoretical understanding, so that you, uh, know what logic is behind this and what is actually happening, yes, behind these candles.  That is, these are large players; these
could be banks, hatchery funds, or institutional investors.  They place a large volume of orders.  Next, there is an accumulation of positions before the impulse The price then remains at this point while the orders are being executed.  Then
an impulse of accumulation direction occurs .  That is, this order block accumulation. We understand and remember the definition.  So. And also important, yes, there must definitely be [music] displacement, strong
movement after the candle.  If this, if this is not there, then this is not an order block.  And displacement is a strong impulse. That is, there is no displacement, [music] no setup.   Let's move
on.  In general, how to find it on a chart?  What is this?  That is, a bullish order block is the last bearish candle that closes down before a sharp upward move.  That is, ah, we have, uh, a
schedule.  Next we approach the ecological level of support aa support.  [music] We're forming Low.  And after that we have a strong Low.  And after that we have a strong impulse upwards, that is, from here to here.
After this we return back, since our order block will be the since our order block will be the reference point for the algorithm.  And after that the price goes back down. Here is a bearish order block - this is the last
bullish candle, that is, an upward close before a sharp downward move.  That is, we are in the middle of a trading day, and the price reaches
our resistance level, and a high is formed.  And after that, we have an order block.  Not always in a specific case, yes, now it is,
but then it goes down. a certain level of loyalty is reached, it returns back to our zone. After this it goes down again.  Did you remember?  And then later we'll move on to graphs.  I'll show you in detail.  Important
remark.  [music] Since we discussed in one of the previous videos what a block is, the link will be on the screen or in the comments in the description. And the mitigation block will always [music] have an order block, but not every order block
will have a mitigation block.  Let's remember this, yes, so that you know the relationship this, yes, so that you know the relationship between these two concept patterns.   Let's move between these two concept patterns.   Let's move on.  Let's move on to the next
step.  I'll tell you about the three main rules of a valid order block, so we understand that this is, indeed, an order block, and we can take it into account.  So order block, and we can take it into account.  So the first, most important thing is the first
rule of displacement, right?  Definitely, definitely it must be there.  And displacement is a strong impulse. And [music] that is, it is at least x2 from the And [music] that is, it is at least x2 from the order block itself.  Let me show you.  That
is, if in our case the order block is like this , yes, then the next movement should be at least twice as big. Remembered it, right?  That is, this is a strong
jump. If it is conditionally like this, it is no longer an order block.   Let's move
Rule number two is that it should always match your buy.  Bass match your buy.  Bass is a direction.  That is, if, is a direction.  That is, if, a, I show, then, if we have, a, a
a, I show, then, if we have, a, a bullish bass, order blocks and entering into transactions, that is, bearish.  Well, this is a general rule that is appropriate in and with order blocks, among other things .  That is, if we understand that on the
senior timeframe we are generally bullish, then there is no point in entering into any [music] bearish trades and, accordingly, vice versa.  Well, this is such an important rule in trading that you should always remember and not
forget about it.  Let's move on. And, actually, rule number three is that there should be one candle in a row .  If several candles in a row are closed, this will also be considered one mind block.  So I'm showing it,
one mind block.  So I'm showing it, right?  That is, if we have one candle, two candles, three candles and all of them
three candles and all of them are closed bearish, that is, in one direction, we can define this as one order block. If we have this candle already
closed, and, on the contrary, in the opposite direction, if we have the first and third, direction, if we have the first and third, for example, and the bearish one seems to be bullish, then, accordingly, we no longer consider it as a single whole, we take and
align only with the last closed candle.  That is, it is important to understand this, because since we know that all time frames are fractal, if we will see that it will all be the
same. And let me also tell you, it will be very useful about the entry model, that is, how to enter into transactions in general, [music] and that is, what will be the entry, and
[music] take proIT.  That is, our entry will be formed, that is, we take the order block, the body of our candle from take the order block, the body of our candle from the opening and up to 50%.  Let's.
the opening and up to 50%.  Let's. That is, for us, a bullish candle, we take from the moment of opening and up to 50%. If we have a bearish candle, then from the moment of opening from here to 50 to 50% of the
opening from here to 50 to 50% of the closing we take.  Here.  And, accordingly, closing we take.  Here.  And, accordingly, you remembered, right? Ah, [sighs] let's move on.
That is, we always set a stop-loss , and behind the order block.  That is, if we have it, if we have it bearish, then, accordingly, under, if we have it
bullish, then, accordingly, behind, and, or the nearest low or high. And, accordingly, take the profit.  And, similarly, at the next logical high, but it is
the maximum.  That is, we [music] can have the first level ha, there hi, [music] a, second, there hi third, well, and there can be a bunch of them, yes.  That
is, we consider it up to the most logical high.  There is no need to run after the very to be greedy.  The pressure buys in trading very quickly and strongly.  A lot of money is lost in this. But that is what is
important to understand, yes, if you still want to go further there, that is, let's say your deal, you have done the analysis, and your deal, and you have a the analysis, and your deal, and you have a target of one to two, and you go to
one to two, and at 1 to two you close 80%, yes, that's the main thing.  And then you can leave a partial 20% and then, if you are actively, yes, monitoring the deal in general, then let the 20% go up and then react as you go.
[music] And if, as if, for us, your deal is going well, then good, if it’s not going well, then it’s going down.  Well, what if you decide to change take profits and so on there,
let's, let's take a look.  If you have, uh, take a look.  If you have, uh, an order block came from here,
yes, you enter a deal, or somewhere here [music] you entered, mm, regardless, yes, if you are early, or later.  That [music] is you never know, yes, what might happen next, yes, it will go below here.  Or you
come in here, you're okay, you get to [music] here, and then it goes here.  You never know.  That's all.  You will, yes, be lucky.  That is, if the situation is like this , yes, it will be great, but in that case, 20% would be better, let them
[music] but the main thing is, yes, you close in the plus but the main thing is, yes, you close in the plus rather than take on a loss. Well, in general, yes, for the future in general, if you are just starting out, or in
trading in general.  That is, for me, this is an important understanding, and what was also recommended to me, I remembered and then in practice I was also convinced, yes, that there is
no need to move either the stop or the take at all.  That is, [music] you put attention, you put energy into your analysis.  So, accordingly, there is no need to analysis.  So, accordingly, there is no need to move the stop and take profit based on any emotions
after you have already made a deal.  That is, if you realize that your overall analysis is incorrect due to some factors or criteria that you might not have taken into account, then you simply remove the order entirely.  If during the
transaction you had a desire: “Well, it seems good, the deal is going well, let’s, [music] ah, let’s lower the stop, ah, let’s make more profit, take profit, you don’t have to do that, you don’t have to get carried away.”  That is, we always adhere to this [music]
relatively cold, but calculating approach. approach. Here.  And now we have sort of Here.  And now we have sort of gone through the first, second, third stages.
to the graph.  I'll show you what I prepared a couple of examples in advance, so that, uh, it would be clear enough.
so that, uh, it would be clear enough. That is, this is an example, a, bullish, a, order block.  That is, as we see, we go down, a low is reached, and then an order block is formed.  After that, the next candle, a fairly strong
impulse [snorts] occurs.  That is, displacing, displacing, and, as we can see, it is twice as much. And goes upstairs.  After that we return to the zone.  Here we went below
our previous support level, right? Here, as we see, they passed, and below. we set a stop-loss, and for profit definition, because even if we are equal to this [music] candle, here, well, we
need to take a reserve.  Here.  And after that we go further up. we go further up. Otherwise, great.  This is the first example.
[music] Let's move on. terms of what I told you, that several identical candles in a row
that are moving will also form one order block. And then [the music] is there, if we determine here, that is, as we see, determine here, that is, as we see, here comes the bullish one, here the
block returns, here the displacement, and, as you can see, it is also formed.   Ah
is, we have a Low being formed, and a HF order block is being formed.  That is, we [music] look
And then you can see how carefully we touch this area, return, and then go up again.  And here it is important to understand, that is, as I told you earlier, and here it is important to understand what I told you earlier about a fairly good, and, more
likely, setup, if we still have an imbalance zone, that is, we have [music] this range, and, that is, between the between the first and third candle we have such a
And that is, when we develop these kinds of
will return to fill this imbas will be higher.  That is, first of all, look at these options.  That is, you see, it gets here. you see, it gets here. Let's move on [music].
For example, I also highlighted it here to show you, for example, but this order block, it will not be, well, correct, because, you see, I have, correct, because, you see, I have, well, specifically highlighted, for example, there are
several candles in a row here.  That is, it will not be an one strong movement like this [music] just happens in a few candles.
Here. That is, we also considered this.   Let's
see that this is not wrong.  It is important, yes, to understand and see, that is, incorrect cases too, in order to be able to distinguish them.  Let's move on. And here is another option.  Here,
on the contrary, we have a bearish order block forming.  That is, we have a order block forming.  That is, we have a local high that is developing and forming. That is, here you can even take it with two candles .  [music]
Well, they're essentially an unnoticeable little candle. And then we go down. And regardless of this, as you can see, the algorithm still returns, carefully touches this price, and then
carefully touches this price, and then moves on.   I mean,
Oh, and I also gave you an example in terms of, uh, the option with [music] imbalance Firevga.  That is, such options are more
occur.  That is, we consider them [music] first and foremost.  We looked at everything on the graphs to see what it looks like.  Accordingly, if we, [music] a, want to enter into a position, then we will enter without any problems
position, then we will enter without any problems .  If in our case it is a .  If in our case it is a bearish one, then here we get [music]
and our candle opens up to 50%. And, accordingly, well, that's how we do it. We have a little [music] higher, right?  That is, we are looking at this as an example.  Well, and then, depending on [music], we set it to one to two.
next time we will go into more detail, that is, now I will not waste time, but, that is, in the following videos I will tell how to more correctly determine the levels [music] and what is the correct stop in general
[music] and what is the correct stop in general LOS, or more precisely, what is the correct Risk to revo to set, that is, so that there is no feeling of underestimation there, if there is potential, ah, that is, here, well, it is clear,
we will not catch the entire movement. About eight, yes, but conditionally, if one to four, then we can easily capture the potential .  And, [music] of course, such cases need to be examined in more detail.  And here, without any problems, I will be able to
dedicate it to you in the future, but not in today’s [music] video.  The goal of today's video is a little different.  That is, we are only covering the basics for now.  So, for today we have finished with the analysis of the order block. And what do I strongly recommend to you now
?  That is, ah, watching a video is , [music] of course, good for understanding, that’s wonderful, but the most important thing is practice.  That is, open the chart, and sit down calmly at the computer, and at the graphs and
try to find 10 such options. Here.  Practice this until it becomes automatic, because what you looked at today, and in a forgotten.  And so, it’s like, by watching you’re just wasting your time if
you [music] don’t do any practice.  Here's also [music] and in case you want me, for example, to be able to validate, to say whether you selected everything correctly or incorrectly, then go to my Telegram channel, I join the
trading community there. I can help members of the trading community without any problems , answering questions and assisting them in trading matters.  Something like that .  That is, let's not forget that the order block is part of the system.  It is
quite an important, ah, important component, but there are also other elements.  Ah, [music] so we briefly touched on Imbalance Firevue up.   In my next video I plan to record a
Balance.  And what is this, so that you understand the logic better.  Here.  And for the current moment, for the current day, that’s all.  Ah, so I recommend, yes, go to the Telegram channel, where I publish more, ah, content related to trading,
and I generally talk about how my everyday life goes in the context of trading, how it can all be combined in terms of, ah, personal life, that is, how to best build a schedule, how to adjust your mentality there, ah,
work with psychology, that is, it is quite useful.  Also, ah, there is a trading community where I publish my trading setups, ah, I talk [music] in more detail about trading, I share strategies that you can
adopt.  There's also a beginner's guide if you're just starting out, plus I have personal support, and it's all free [music]. That is, go to the Telegram channel, there will be all the information, and all the answers to
your questions, if you have any. Thank you for watching this video until the end.  And now the only thing I ask you to do is subscribe to the channel, like it, and leave a comment about how much you liked this video or
[music] case, feedback will be useful so that I can make the next video better.  I also recommend watching my other previous video to fully formulate the concept, that is, so that you can gradually assemble the entire
so that you can gradually assemble the entire [music] picture.  Yeah.