ICT
BLOCK
TYPES
GUIDE
by
lucius
ORDER BLOCKS
DEFINITION
BULLISH
the lowest candle with a down
close that has the most range
between open-close and is near
a “suppor t ” level
BEARISH
the highest candle with an up
close that has the most range
between open-close and is near
a “resistance” level
wait for price to give an
indication that larger orders
are coming into the market,
there should be a strong
reaction towards the opposite
side once price reaches an
impor tant “resistance” or
“suppor t ” level
VALIDATION
DISPLACEMENT
ENTRY AND RISK
the orderblock is validated
when the high of the lowest
down close candle or the low of
the highest up close candle is
traded through by a more
recently formed candle
price may run away from the
order block if it ’s valid, often
there is a strong reaction so you
need to be patient for it to
retrace its move and retest the
order block
ideally the best bullish
orderblocks will not see price
trade below the mid-point
(mean threshold) of the candle,
or trade above the mean
threshold if bearish.
this is an indication that there is
displacement in the marketplace
when price impulsively moves
away from the bullish/bearish
orderblock, it may retrace after
the displacement which can offer
a buying or selling oppor tunity as
price returns to the open of the
bullish/bearish orderblock candle
use the fibonacci tool to
measure the open and close of
the candle, the mean threshold
is 50%
displacements may also leave
behind another POI, the “fair
value gap”
this is also the evidence in price
action that there is institutional
sponsorship behind the move
it is recommended to use only
the bodies of the candles and
not the wicks because it
contains the pure data, as
everyone uses different brokers
& exchanges this can make
wicks unreliable at times but
it ’s discretionary - wicks can
be used
/LUCIUSTHE3RD
target the buy stops above/sell
stops below the marketplace as
your first TP or full TP
the low of the bullish orderblock
or high of the bearish orderblock
is a relatively safe stop loss
placement
O R D E R B LO C K S
L I Q U I D I T Y B AS E D B I AS
+
IF
WA I T F O R I N T R A DAY C H A R T S ( 4 - H O U R
T I M E F R A M E A N D LOW E R ) TO B E G I N R E T R AC I N G
BULLISH
A N T I C I PAT E T H E M A R K E T TO E N T E R I N TO A
D I S C O U N T A N D S E E K S E L L S I D E L I Q U I D I T Y TO
B U Y F R O M
+
p r i c e r u n n i n g i n t o d i s c o u n t a r r ay a n d
re s p e c t i n g t h e b u l l i s h o rd e r b l o c k
fo l l owe d by a n i m p u l s i ve m ove t o t h e u p s i d e
B U L L I S H O R D E R B LO C K
+
IF
WA I T F O R I N T R A DAY C H A R T S ( 4 - H O U R
T I M E F R A M E A N D LOW E R ) TO S TA R T C O R R E C T I N G
TO T H E U P S I D E
BEARISH
A N T I C I PAT E T H E M A R K E T TO E N T E R I N TO A
P R E M I U M A N D S E E K B U Y S I D E L I Q U I D I T Y TO S E L L
TO
+
B E A R I S H O R D E R B LO C K
p r i c e r u n n i n g i n t o p re m i u m a r r ay b e fo re
re s p e c t i n g t h e b e a r i s h o rd e r b l o c k
a s a re s u l t t h e re i s a s t ro n g re a c t i o n t o t h e
d ow n s i d e
/LUCIUSTHE3RD
M I T I GAT I O N
B LO C KS
p r i c e p u s h e s i n to a
“ re s i s t a n c e ” l eve l
R E S I S TA N C E L E V E L
s h o r t te r m ra l l y
2
short opportunity
1
MSB
m a r ke t s t r u c t u re
b re a k
p r i c e b re a k s s t r u c t u re a n d
s h i f ts l owe r
3
i n s i d e t h i s l ow o f p r i c e a c t i o n
fo c u s o n t h e l a s t d ow n c a n d l e
a s t h i s w i l l b e t h e b e a r i s h l eve l
to s e l l i n to
i f yo u b e l i eve p r i c e i s m ov i n g
l owe r l o n g e r te r m (d ra w o n
l i q u i d i t y b e l ow ) , t h i s s h o r t te r m
ra l l y c o u l d b e s e e n a s a n o t h e r
selling opportunity
SUPPORT LEVEL
h i g h e r t i m e f ra m e
W H E N P R I C E AC T I O N B R E A KS D OW N A N D R E T U R N S TO R E F E R E N C E P O I N T ‘ 1 ’ , T H E LO N G P O S I T I O N S
F R O M T H E ‘ 1 ’ TO ‘ 2 ’ P R I C E S W I N G W I L L H AV E A N O P P O R T U N I T Y TO M I T I GAT E T H E I R LO S S T H AT
O C C U R R E D W H E N P R I C E F E L L F R O M ‘ 2 ’ TO ‘ 3 ’
T H I S CA N L E A D TO N E W LOW E R P R I C E S W I N G S TO R E T E S T ‘ 3 ’ O R E V E N LOW E R TOWA R D S T H E H T F
SUPPORT LEVEL UNDER MARKET PRICE
l owe r h i g h
fo r m e d
t ra p p e d l o n g s b e i n g
m i t i g a te d
B E A R I S H M I T I GAT I O N B LO C K
s t r u c t u re s h i f t
s t r u c t u re s h i f t
B U L L I S H M I T I GAT I O N B LO C K
u n d e r w a te r s h o r ts
closing positions
h i g h e r l ow
fo r m e d
/LUCIUSTHE3RD
BREAKER BLOCKS
RESISTANCE LEVEL
price runs through the old high
and reprices lower, retracing
back into the old high
orders inside this high
(shor ts) looking to be
mitigated
price respects this zone and
continues to the upside
MSB
confirming that the bearish order
block has flipped into a bullish
breaker block
market structure break
BULLISH BREAKER BLOCK
price trades lower and
creates a shor t term
low
price meets slight
resistance at the old
shor t term low
shor t term low is
violated
SUPPORT LEVEL
price runs the sell stops
higher timeframe
indicating sellers are trapped
shor t
A BEARISH BREAKER BLOCK IS A DOWN CLOSE CANDLE
IN THE MOST RECENT SWING LOW PRIOR TO AN OLD
HIGH BEING VIOLATED
A BULLISH BREAKER BLOCK IS AN UP CLOSE CANDLE
IN THE MOST RECENT SWING HIGH PRIOR TO AN OLD
LOW BEING VIOLATED
HIGH VIOLATED
L AST UP CANDLE BETWEEN THE
TWO LOWER LOWS
(SHORT TERM HIGH)
STRUCTURE SHIFT
BEARISH BREAKER
BLOCK
BULLISH
BREAKER BLOCK
STRUCTURE SHIFT
LOW VIOLATED
/LUCIUSTHE3RD
REJECTION
B LO C KS
R E J E C T I O N B LO C K R A N G E
( S E L L I N G B LO C K )
a p r i c e h i g h fo r m s w i t h t wo l o n g
wicks on the highs of the candles
t re a t a s a b e a r i s h
o rd e r b l o c k
DISTRIBUTION
p r i c e p u s h e s a b ove t h e
highest candles body
clearing out buyside
liquidity
w h e n p r i c e t ra d e s b a c k d ow n to t h e
l ow o f t h e re j e c t i o n b l o c k ra n g e , t h a t
i s t h e s e l l t r i g g e r
s to p s c a n b e p l a c e d s l i g h t l y a b ove
the highest wick
p r i c e re s p e c ts t h e re j e c t i o n b l o c k
a n d s e e k s re s t i n g l i q u i d i t y o n t h e
opposing side
A B E A R I S H R E J E C T I O N B LO C K I S W H E N A P R I C E H I G H H AS
F O R M E D W I T H LO N G W I C KS O N T H E H I G H ( S ) O F T H E
CA N D L E S T I C K ( S )
A B U L L I S H R E J E C T I O N B LO C K I S W H E N A P R I C E LOW H AS
F O R M E D W I T H LO N G W I C KS O N T H E LOW ( S ) O F T H E
CA N D L E ( S )
P R I C E R E AC H E S U P A B OV E T H E B O DY O F T H E CA N D L E ( S ) TO
RUN OUT BUYSIDE LIQUIDITY BEFORE DECLINING
P R I C E R E AC H E S B E LOW T H E B O DY O F T H E CA N D L E ( S ) TO
R U N O U T S E L L S I D E L I Q U I D I T Y B E F O R E R E P R I C I N G TO T H E
UPSIDE
/LUCIUSTHE3RD
RECLAIMED
O R D E R B LO C KS
MARKET MAKER BUY MODEL
I N S T I T U T I O N S S CA L I N G I N
I N S T I T U T I O N S S CA L I N G O U T
S E L L S I D E O F C U RV E
B U Y S I D E O F C U RV E
O L D B LO C KS
RECLAIMED
B LO C KS
THIS SIDE REPRESENTS THE DROP
I N TO T H E “ S U P P O R T L E V E L”
THIS SIDE REPRESENTS THE
B O U N C E O F F T H E “ S U P P O R T L E V E L”
A R E C L A I M E D B U L L I S H O R D E R B LO C K I S A CA N D L E T H AT WAS P R E V I O U S LY U S E D TO
B U Y P R I C E W H I C H CA U S E D A M I N O R D I S P L AC E M E N T TO T H E U P S I D E - I N T H E B U Y
S I D E O F C U RV E , P R I C E S H O U L D B E M A K I N G N E W H I G H E R H I G H S A N D T H E O L D
O R D E R B LO C KS F R O M T H E S E L L S I D E O F C U RV E W I L L B E C O M E R E C L A I M E D LO N G S
D I S P L AC E M E N T S
RECLAIMED BULLISH
O R D E R B LO C KS
“OLD” ORDER
B LO C KS
P R I C E B R E A KS D OW N A N D TA P S A
KEY LEVEL BEFORE BOUNCING
S E L L S I D E O F C U RV E
B U Y S I D E O F C U RV E
/LUCIUSTHE3RD
RECLAIMED
O R D E R B LO C KS
MARKET MAKER SELL MODEL
T H I S S I D E R E P R E S E N T S T H E R A L LY
I N TO T H E “ R E S I S TA N C E L E V E L”
T H I S S I D E R E P R E S E N T S T H E R E T R AC E M E N T
F R O M T H E “ R E S I S TA N C E L E V E L”
O L D B LO C KS
RECLAIMED
B LO C KS
B U Y S I D E O F C U RV E
S E L L S I D E O F C U RV E
A R E C L A I M E D B E A R I S H O R D E R B LO C K I S A CA N D L E T H AT WAS P R E V I O U S LY U S E D TO S E L L P R I C E W H I C H CA U S E D A
M I N O R D I S P L AC E M E N T TO T H E D OW N S I D E - I N T H E S E L L S I D E O F C U RV E , P R I C E S H O U L D B E M A K I N G N E W LOW E R
LOWS A N D T H E O L D O R D E R B LO C KS F R O M T H E B U Y S I D E O F C U RV E W I L L B E C O M E R E C L A I M E D S H O R T S
B U Y S I D E O F C U RV E
S E L L S I D E O F C U RV E
key l eve l t a p
then decline
T H E L AS T S I G N I F I CA N T U P CA N D L E
W H I C H S H OW E D W I L L I N G N E S S TO S E E
PRICE DROP ON THE BUY SIDE OF
C U RV E
“OLD” ORDER
B LO C KS
O L D B E A R I S H O R D E R B LO C KS A R E
R E C L A I M E D AS P R I C E R U N S B AC K
I N TO T H E O L D U P CA N D L E S
D I S P L AC E M E N T S
D I S P L AC E M E N T S
l owe r l ow s
RECLAIMED BULLISH
O R D E R B LO C KS
P R I C E B R E A KS D OW N A N D TA P S A
KEY LEVEL BEFORE BOUNCING
S E L L S I D E O F C U RV E
B U Y S I D E O F C U RV E
/LUCIUSTHE3RD
PROPULSION
BLOCKS
BULLISH
PROPULSION BLOCK
ORDER BLOCK
ideally price shouldn’ t fall below t he mean
t hreshold (50%) of t he propulsion candle
a reliable propulsion candle should give a
strong reaction when price trades back down
into it
multiple bullish order blocks
are created indicating
bullish order flow
price drops back down into a
bullish order block which is
already predisposed to go higher
A BULLISH PROPULSION BLOCK IS A CANDLE THAT HAS PREVIOUSLY TRADED DOWN INTO A BULLISH
ORDER BLOCK AND TAKES OVER THE ROLE AS PRICE SUPPORT FOR HIGHER PRICE MOVEMENT
BULLISH
PROPULSION BLOCK
price fails to trade below
t he mean t hreshold of t he
bullish propulsion candle/
block
50%
bullish order block
/LUCIUSTHE3RD
PROPULSION
BLOCKS
price forms multiple bearish
order blocks giving an
indication for continuation
t he underlying context
should be bearish
when price trades back up into t he low of
t he propulsion block
ORDER BLOCK
t hat is t he sell trigger
BEARISH
PROPULSION BLOCK
price pulls back into t he bearish order block
and adopts t he role of resistance
A BEARISH PROPULSION BLOCK IS A CANDLE THAT HAS PREVIOUSLY TRADED UP INTO AN UP CANDLE/
BEARISH ORDER BLOCK AND TAKES OVER THE ROLE AS PRICE RESISTANCE FOR LOWER PRICE MOVEMENT
price trades into t he bearish
propulsion block and closes under t he
mean t hreshold
50%
bearish order block
BEARISH
PROPULSION BLOCK
/LUCIUSTHE3RD
VACUUM BLOCKS
A BULLISH VACUUM BLOCK IS A GAP CREATED IN PRICE ACTION AS A RESULT
OF A VOL ATILITY EVENT
THE GAP FORMS BY A “ VACUUM ” OF LI Q UIDITY DIRECTLY REL ATED TO THE EVENT
e v e n t e x a m p les :
NF
P
(n
o n f a rm
pay
roll ) or
a
sessio n o p e n i n g i n
fu
t u res
high
no trades in
t his range
treat as a
candle
low
bullish order
block
per fect
deliver y
of price
100%
filled
potential
buy
potential
buy
shor t term low
t here is an absence of liquidity as t he market
opens trading at a higher price but it can be
defined as t he “high” and “low ” of t he gap if bullish, look for a bullish order block/
down candle which could stop t he gap from
filling entirely
t he entire range has been filled (a full return
on a vacuum block) which means it has been
completely balanced out
(using parameters as if it were a candle/range)
t he order block can present a buying
oppor tunity
t his can present a different buying
oppor tunity
if price rallies you do not want it to trade
back down to t he fully filled vacuum block
again
CORRECTIVE MOVE
IN UPWARD TREND
POTENTIAL
EXHAUSTION GAP
MORE PROBABLE
LESS PROBABLE
/LUCIUSTHE3RD
VACUUM BLOCKS
A BEARISH VACUUM BLOCK IS A GAP CREATED IN PRICE ACTION AS A RESULT
OF A VOL ATILITY EVENT
THE GAP FORMS BY A “ VACUUM ” OF LI Q UIDITY DIRECTLY REL ATED TO THE EVENT
e v e n t e x a m p les :
NF
P
(n
o n f a rm
pay
roll ) or
a
sessio n o p e n i n g i n
fu
t u res
shor t term high
potential
sell
high
no trades in
t his range
bearish order
block
potential
sell
100%
filled
treat as a
candle
per fect
deliver y
of price
low
t here is an absence of liquidity as t he market
opens trading at a lower price but it can be
defined as t he “high” and “low ” of t he gap if bearish, look for a bearish order block/
up candle which could stop t he gap from
filling entirely
t he entire range has been filled (a full return
on a vacuum block) which means it has been
completely balanced out
(using parameters as if it were a candle/range)
t he order block can present a selling
oppor tunity
t his can present a different selling
oppor tunity
if price declines you do not want it to trade
back up into t he fully filled vacuum block
again
CORRECTIVE MOVE IN
DOWNWARD TREND
POTENTIAL
EXHAUSTION GAP
MORE PROBABLE
LESS PROBABLE
/LUCIUSTHE3RD