Unlike retail traders, institutions don’t throw down a market order and call it a day. Their position sizes are massive, and entering all at once would send the market skyrocketing or crashing.
So what do they do? They layer their orders in a zone—an order block—to get filled without moving price too quickly.
Demand and Supply Zones
Think of an order block as a special kind of supply or demand zone, but smarter. It’s where intentional manipulation happens to trap retail traders and fill institutional orders.