#firstdealofthenewyearFateema A valid order block in trading refers to a price zone where institutions or smart money have placed significant buy or sell orders, leading to a strong price reaction. It is a key concept in Smart Money Concepts (SMC) and price action trading. Characteristics of a Valid Order Block: 1. Strong Price Reaction – After the order block forms, the price moves away rapidly, confirming institutional activity. 2. Engulfing Candle – Often, a valid order block is preceded by a large bullish or bearish engulfing candle. 3. Break of Structure (BOS) – If the price breaks a key high or low after reacting from the order block, it strengthens its validity.