Order Block (OB)

ICT · Timeframe: H1 / H4 · Sessions: Any; best in killzones

The last opposite candle before a structure-breaking displacement marks where institutional orders came in.

How it works

A bullish order block is the last bearish candle before an impulsive move that breaks a previous high (BOS). It represents the zone where 'strong hands' built positions. When price returns to that candle (especially to its open or its 50%, the 'mean threshold'), a reaction in the direction of the original impulse is expected. It is more reliable if the OB also leaves an FVG and swept liquidity before the impulse.

Step-by-step rules

1. Look for a strong displacement (body > 1.5 ATR) breaking the high/low of the last 20 candles.
2. Mark the last opposite-coloured candle before the impulse (the OB).
3. Limit entry at the proximal edge of the OB.
4. Stop: beyond the distal edge of the OB.
5. Target: 2R or the next high/low.

How Marketalyx tests it

Detector: displacement candle > 1.5 ATR breaking the 20-candle extreme; OB = last opposite candle (≤5 candles before); limit entry at the proximal edge; stop at the distal edge; 2R target.

See real cases on gold and forex →

Related strategies

Power of Three (PO3 / AMD) · Fair Value Gap (FVG) – retest · PDH/PDL liquidity sweep (Turtle Soup) · ICT Silver Bullet · ICT 2022 model (Sweep + MSS + FVG) · Optimal Trade Entry (OTE 62–79%) · Judas Swing · SMT Divergence

Educational content. No strategy guarantees profits and past performance does not guarantee future results.