What the chart shows
The rule found a bullish order block: the down bar starting Sun 23:00 UTC (open $4,079.1, close $4,063.8), range $4,062.5–$4,082.2. Within 3 bars price closed $50.7 above its high (2.9 times the average hourly range).
Price later closed through the block at Tue 13:00 UTC, which cancels it.
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.