What the chart shows
The rule found a bullish order block: the down bar starting Mon 12:00 UTC (open $3,910.7, close $3,910.4), range $3,907.8–$3,916.3. Within 3 bars price closed $58.5 above its high (3.5 times the average hourly range).
Price had not returned to the block by the end of the chart.
What is an order block?
An order block is the last candle against the trend before a strong move: the last down candle before a sharp rally, or the last up candle before a sharp drop. The idea is that large orders were placed there, and price often reacts when it returns to it.
The rule that found it
A bullish order block is a down bar (close below open) where the next bar closes above its high and the best close of the next 3 bars is at least one average hourly range above that high. A bearish one is the mirror image. The block with the largest move away from it is shown, from its low to its high, and later bars are checked for a return into it.
How traders use it
- Treat the block as a zone and wait for price to return to it.
- A common plan: enter on a reaction inside the block in the direction of the move that left it, place the stop just beyond the block, and aim for the high (or low) of that move.
- A block that price closes through is invalid; the best ones also line up with a gap, a swing level or a higher-timeframe trend.
Education only: this explains a pattern that already happened on a past chart. It is not a signal or a level to trade today, and not personal advice.