# How to Identify and Journal Order Blocks

> Learn how to identify valid order blocks in MT4/MT5 and what to record in your trading journal to track order block hit rate and performance.

**URL:** https://traderjournal.app/smc-ict/how-to-identify-and-journal-order-blocks

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# How to Identify and Journal Order Blocks

An order block is the last bullish or bearish candle before a strong impulsive move away from a price zone. It represents an area where institutional orders were placed — and where price tends to return for a reaction.

## Identifying a Valid Order Block

**Bullish order block:** The last bearish candle before a strong bullish move. Price should move away with momentum (large candles, minimal wicks).

**Bearish order block:** The last bullish candle before a strong bearish move. The move away should be impulsive.

### Validation Criteria

Not every candle before a move is a valid order block. Look for:

1. **Strong displacement away** — at least 2-3 large candles moving away from the zone
2. **Break of Structure** — the move creates a new high/low, confirming institutional activity
3. **Clean zone** — price has not returned to the order block yet (unmitigated)
4. **Higher timeframe confluence** — order block aligns with HTF trend direction

## What to Record in Your Journal

For every order block trade, log:

| Field | What to Record |
|---|---|
| Order block timeframe | M15, H1, H4, D1 |
| Entry timeframe | Smaller TF used for entry trigger |
| Order block type | Bullish OB / Bearish OB |
| Mitigated before? | Yes (used) / No (fresh) |
| Liquidity sweep before entry | Yes / No |
| FVG present in OB | Yes / No |
| Confluences | HTF trend, key level, session |
| Result | Win / Loss / BE |

In Trader Journal, put this in the **Pre-trade plan** or **Notes** field. Tag the trade `OB` plus the timeframe (e.g., `OB-H1`).

## Tracking Order Block Performance

After 30+ order block trades, analyze:

- **Hit rate by timeframe** — do H4 OBs work better than M15 OBs for you?
- **Swept vs unswept entries** — does waiting for a liquidity sweep improve results?
- **Fresh vs mitigated OBs** — first tap vs second tap win rate difference

Filter by tag in Trader Journal's Reports to see these breakdowns.

## Common Mistakes

**Marking every candle as an order block:** Discipline is required. Only mark candles before impulsive, structure-breaking moves.

**Entering before price reaches the OB:** Let price come to you. Entering early reduces the risk/reward significantly.

**Ignoring the HTF trend:** A bullish OB in a bearish HTF market has lower probability. Always check at least two timeframes above your entry timeframe.

## Summary

Order blocks are high-probability entry zones when identified correctly. The journal is what separates traders who think order blocks work from those who *know* they work — because they have the data.