Say gold rallies from roughly 2,650 to 2,720 across several H4 candles — that's the impulse. Price then prints a large bearish engulfing candle on the H4 chart, closing back below the open of the prior long green candle: the exhaustion signal. On the M5 chart, you trace back to the exact candle where that down-move began — the order block, sitting roughly between 2,715 and 2,718. Price breaks structure lower on M5, then pulls back up into that block before you look to enter.

Price has been making higher highs and higher lows for a while — a clean uptrend. Suddenly a candle closes below the most recent higher low. That's a CHoCH — the first hint sellers may be stepping in. If price then goes on to break below the swing low before that one too, structure has now flipped, and that second break is a bearish BOS — the uptrend is officially over until proven otherwise.

Gold rips higher in three fast candles, leaving a visible gap between candle one's high and candle three's low — a fair value gap. Days later, price drifts back down and taps the edge of that gap before turning around and continuing higher. The candle that started that three-candle run is the order block traders were watching for exactly that kind of return visit.

Price grinds sideways under a well-watched resistance level for hours, quietly building up buy-stops above it. It then spikes above that level for a few minutes — sweeping those stops — before reversing hard back down. That quick spike-and-reverse is a liquidity sweep, not a genuine breakout, and it's exactly the kind of move that catches breakout traders offside.