OB old version by triumm

What is an Order Block?

In Smart Money Concepts (SMC), an order block (OB) is the last bullish or bearish candle before a strong impulsive move that breaks structure.

A Bullish OB → the last down candle before price moves strongly up.

A Bearish OB → the last up candle before price moves strongly down.

Order blocks represent areas where institutions or “smart money” placed large buy/sell orders.

🔹 What is a Volume Order Block?

A Volume Order Block adds a volume filter to standard order blocks.
Instead of just marking any OB, it highlights only those that are confirmed by abnormally high trading volume.

📌 Logic:

When banks/institutions create OBs, they usually inject big volume into the market.

Regular OBs may appear everywhere, but volume-based OBs filter out weak ones.

🔹 How to Identify a Volume Order Block

Find the OB normally (last opposite candle before strong move).

Check volume of that OB candle:

If volume is above average → strong OB (institutions active).

If volume is low/normal → weak OB (likely to fail).

🔹 Why Volume OB is Better

Filters fake OBs → many OBs form, but not all are institutional.

Higher probability zones → when price revisits that OB, it’s more likely to respect it.

Confluence with liquidity → strong OB + high volume often means liquidity grab + institutional entry.

🔹 Example (Bullish Volume OB)

Price is in a downtrend.

A bearish candle with unusually high volume forms.

Immediately after, price pushes up strongly, breaking structure.

That bearish candle is now a bullish volume order block.

When price returns to that level → strong buy reaction expected.

🔹 How Traders Use Volume OBs

Entries → wait for price to revisit the OB + volume support.

Stop Loss → usually below (bullish OB) or above (bearish OB).

Target → next liquidity pool, FVG, or imbalance.

Filtering → ignore OBs with low volume → less clutter on chart.

✅ In short:
A Volume Order Block = A normal OB + confirmed by unusually high volume.
It gives you higher quality supply & demand zones backed by institutional activity.