Comparison
Order Block vs Supply and Demand Zones
Both mark the place a strong move started, on the idea that unfilled orders may remain there. An order block is precise: the last opposite-coloured candle before the move. A supply or demand zone is usually wider: the whole small consolidation, or base, before the move.
Order block
An order block is the last opposite-coloured candle before a strong move, treated as a zone where large orders may have been placed.
Supply and demand zones
Supply and demand zones are price areas where a strong move started, which traders watch for a reaction when price returns.
Side by side
| Aspect | Order block | Supply and demand zones |
|---|---|---|
| Drawn around | One candle | A base of one or more candles |
| Width | Narrower | Wider |
| Origin of the term | Smart money concepts | Classic supply and demand trading |
| Common extra condition | The move away broke market structure | The move away was strong and fast |
How to tell them apart on a chart
- If you are marking a single candle, you are drawing an order block.
- If you are marking a short sideways base, you are drawing a zone.
- Both weaken each time price returns and absorbs orders there.
Frequently asked questions
Is an order block just a demand zone?
A bullish order block usually sits inside a demand zone. It is a narrower way of marking the same area.
Which should I use?
Whichever you can draw consistently. The level matters less than how price reacts when it returns.
Glossary entries
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Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.