Supply And Demand Zones Vs Order Blocks

Supply and demand zones and order blocks are drawn in similar places on a chart and often get treated as interchangeable, but they come from different reasoning and are not always identical.

Where They Overlap And Differ

A demand zone is generally defined by a strong rally away from a price area, regardless of the specific candle it started on — the whole base of consolidation before the rally can count. An order block, by contrast, is usually defined more narrowly as the last specific opposing candle before an aggressive, structure-breaking move. Every order block is arguably a form of demand or supply zone, but not every supply or demand zone would qualify as an order block under stricter smart money criteria.