Order blocks & fair value gaps
An order block is the last opposing candle before a strong impulsive move — a zone price may return to. A Fair Value Gap (FVG) is a 3-candle imbalance (a gap the middle candle leaves) that price often revisits.
Setup / entry / invalidation
Setup: HTF bias + a fresh order block or FVG in that direction. Entry: limit or confirmation on the return to the zone. Stop: beyond the zone. Target: next structure/liquidity. Invalidation: a strong close through the zone.
Good vs bad example
Good: bullish HTF, price returns to an unmitigated demand order block, LTF confirmation → long. Bad: buying every order block with no bias or confirmation.
Honest note
Order blocks/FVGs are descriptive labels for imbalance; they are not magic. Verify your win rate before trusting them, and always use risk management. SMC without discipline still blows accounts.