Order block (SMC-OB)

How the setup is identified

Identifies the order block a strong directional move originated from, and trades price returning to that zone.

Status and evidence

Carries the trend regime almost single-handedly. In out-of-sample 2025 testing it produced +$179.64 while everything else in that regime was noise. Trades institutional order blocks — zones where large orders previously moved price — rather than indicator crossovers.

What we learned

The mechanical definition — the last opposing candle before an impulsive move — is what makes the idea testable rather than merely believable. There is no discretion in drawing the zone, so it can be evaluated the same way every time.

This is the strategy that carried the trend regime almost single-handedly in out-of-sample 2025 testing, producing +$179.64 while everything else in that regime was noise. Several other smart-money strategies in the same family, including FVG and structure shift, did not survive the same test.