Institutional Order Block

An institutional order block is a specific price range where large institutional investors have placed significant buy or sell orders. These blocks are often visible as clusters of volume or areas where price reacted strongly in the past.

When price returns to these zones, it often encounters support or resistance because the institutional players may still have remaining orders to fill or are defending their original position. Identifying these blocks helps retail traders align their strategies with the "smart money." By analyzing order flow and volume, traders can attempt to map out where these large entities are active.

This concept is fundamental to supply and demand trading and provides a deeper understanding of the structural forces that drive long-term price trends.