ArizetTHE DESKSYNDICATIONStart trading
Academy ·  Chart Pattern Library ·  Smart money concepts
Pattern 16 of 18: all patterns
Classic reversals
  1. Double top and double bottom
  2. Triple top and triple bottom
  3. Head and shoulders
Consolidation breakouts
  1. Ascending triangle
  2. Descending triangle
  3. Symmetrical triangle
  4. Rising wedge and falling wedge
  5. Rectangle
  6. Bull flag and bear flag
  7. Bull pennant and bear pennant
Harmonic patterns
  1. AB=CD
  2. Gartley
  3. Bat
  4. Butterfly
  5. Crab
Smart money concepts
  1. Order block after a break of structure
  2. Liquidity sweep and fair value gap
Session patterns
  1. Opening range breakout
Smart money concepts  ·  Pattern 16 of 18

Order block after a break of structure

Continuation (BOS) or turn (CHoCH)Also called: BOS, CHoCH, order block

A close beyond the last swing high or low is a break of structure. If it goes with the current structure it is called a BOS (continuation); if it is the first break against it, a CHoCH (change of character). The order block is the last opposite candle before the move that broke structure. A return to it is the setup.

What it shows

Market structure is the sequence of higher highs and higher lows (or lower lows and lower highs). A break shows where the sequence changed. The order block marks where the move started, and traders who follow this approach expect price to react there on a return.

How the scanner finds it
  • Swings come from the same swing engine as every other pattern, so a swing is only used once it is confirmed.
  • A close beyond the last swing high (low) is the break. The first break against the prior direction is labelled CHoCH, later ones BOS.
  • The order block is the last down candle (for a break up) from five bars before the swing low to two bars after it.
order blockswing highswing lowCHoCHTargetEntryStop134
An idealized drawing. The numbers are the alert stages; the shaded boxes are the textbook stop and target.

How the alerts work for this pattern

  1. 1
    Forming

    The break happens. The scanner marks the structure level and the order block zone.

  2. 3
    Close to signaling

    Price comes back within a third of an ATR of the block.

  3. 4
    Time to act

    Price touches the near edge of the block.

  4. x
    Cancelled

    A candle closes through the far side of the block, or 40 bars pass.

The textbook trade

Trigger
A touch of the order block.
Stop
Beyond the far edge of the block, plus a small ATR buffer.
Target
Two times the risk (2R).

Things to watch

  • Different educators define the order block candle differently. The scanner uses one fixed rule so the zone is repeatable.
  • A CHoCH is an early sign, not a confirmed reversal. Many traders wait for a BOS in the new direction.
Where it comes from

Market structure goes back to Charles H. Dow's Wall Street Journal editorials (around 1900) and Dow Theory. Order blocks, BOS and CHoCH as named here were popularised by Michael J. Huddleston (Inner Circle Trader) in free online mentorships from the 2010s, and are now widely taught as "smart money concepts".

On our charts

Real detections by the scanner on our own price data (2026-08-01 to 2026-10-19), with the alerts it sent. Times are New York time. Some worked and some did not.

US10015-minute chart2026-10-19Bullish order block after BOSReached the target
29426.729525.729624.629723.529822.410-19 04:1510-19 06:3010-19 08:4510-19 11:0010-19 13:1510-19 15:30swing lowBOST 29612.2E 29527.4S 29485.01345
The alerts it sent
  1. 1Forming2026-10-19 10:15 NYbreak of structure at 29610.8; order block 29496.2 to 29527.4
  2. 3Close to signaling2026-10-19 14:00 NYclose to the zone at 29527.4
  3. 4Time to act2026-10-19 14:30 NYtouched 29527.4: entry 29527.4, stop 29485.0, target 29612.2
  4. 5Result2026-10-19 15:30 NYtarget (+2.00R)
GBPUSD60-minute chart2026-10-19Bearish order block after CHoCHNeither in 8 hours
1.32821.32991.33151.33311.334710-18 19:0010-19 00:0010-19 05:0010-19 10:0010-19 15:0010-19 20:00swing highCHoCHT 1.3288E 1.3319S 1.33351345
The alerts it sent
  1. 1Forming2026-10-19 12:00 NYchange of character at 1.3307; order block 1.3319 to 1.3332
  2. 3Close to signaling2026-10-19 21:00 NYclose to the zone at 1.3319
  3. 4Time to act2026-10-19 23:00 NYtouched 1.3319: entry 1.3319, stop 1.3335, target 1.3288
  4. 5Result2026-10-19 23:00 NYtime (-0.44R)

Education, not advice. A pattern describes what many traders watch for; it does not predict what price will do. The textbook stop and target are reference levels, not instructions. Trading involves risk.

Put it to work

Trade your way. The Desk backs the move.

You trade; the Desk allocates its own capital behind your trade, small at first and more as the move proves itself. You keep 90% of what that capital makes. $15 a contract, or try it first on a $1,500 demo.

Start tradingAll patterns
Trading involves risk. This page is education, not advice; examples come from past data.