Advanced Order Blocks with Volume

An order block is the last opposing candle or zone before an impulsive move away from a level. The reasoning is that institutions accumulate positions in that area before driving price, so the block marks a price region where significant orders were likely placed. When price later returns to that zone, some of those resting orders may still be active, which is why order blocks are watched as potential reaction points.

Adding volume to the picture helps gauge how meaningful a block is. A block that formed on notably heavy participation is treated as more significant than one that formed on thin activity, because heavier volume suggests genuine institutional interest rather than a random candle. This lets you rank blocks instead of treating them all the same.

The concept of mitigation tracks whether price has already returned to and reacted at a block. An unmitigated block has not yet been retested and is often considered more likely to produce a reaction; once price trades back through it, the block is considered mitigated and usually loses its edge. Watching mitigation keeps you focused on the zones that still have unfinished business.