ICT BLOCK TYPES

GUIDE

by lucius
 ORDER BLOCKS

DEFINITION VALIDATION DISPLACEMENT ENTRY AND RISK

BULLISH

the orderblock is validated price may run away from the when price impulsively moves
when the high of the lowest order block if it ’s valid, often away from the bullish/bearish
the lowest candle with a down down close candle or the low of there is a strong reaction so you orderblock, it may retrace after
close that has the most range the highest up close candle is need to be patient for it to the displacement which can offer
between open-close and is near traded through by a more retrace its move and retest the a buying or selling oppor tunity as
a “suppor t ” level

recently formed candle

order block

price returns to the open of the

bullish/bearish orderblock candle

BEARISH

ideally the best bullish this is an indication that there is

orderblocks will not see price displacement in the marketplace

target the buy stops above/sell

the highest candle with an up trade below the mid-point stops below the marketplace as
close that has the most range (mean threshold) of the candle, this is also the evidence in price your first TP or full TP

between open-close and is near or trade above the mean action that there is institutional
a “resistance” level

threshold if bearish.

sponsorship behind the move

the low of the bullish orderblock

wait for price to give an
indication that larger orders
are coming into the market,
use the fibonacci tool to
measure the open and close of
the candle, the mean threshold
is 50%
or high of the bearish orderblock
displacements may also leave is a relatively safe stop loss
behind another POI, the “fair placement
value gap”

there should be a strong

reaction towards the opposite
side once price reaches an
impor tant “resistance” or
“suppor t ” level
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
 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

+
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

IF 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

+ 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

IF 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

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 3
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 t ra p p e d l o n g s b e i n g
fo r m e d 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
market structure break breaker block

BULLISH BREAKER BLOCK

price trades lower and

creates a shor t term
low
price meets slight
resistance at the old
shor t term low is shor t term low
violated

price runs the sell stops

SUPPORT LEVEL
higher timeframe
indicating sellers are trapped
shor t

A BEARISH BREAKER BLOCK IS A DOWN CLOSE CANDLE A BULLISH BREAKER BLOCK IS AN UP CLOSE CANDLE
IN THE MOST RECENT SWING LOW PRIOR TO AN OLD IN THE MOST RECENT SWING HIGH PRIOR TO AN OLD
HIGH BEING VIOLATED LOW BEING VIOLATED

HIGH VIOLATED L AST UP CANDLE BETWEEN THE

TWO LOWER LOWS
(SHORT TERM HIGH)

BEARISH BREAKER STRUCTURE SHIFT

BLOCK
BULLISH
STRUCTURE SHIFT BREAKER BLOCK

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

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 ( S E L L I N G B LO C K )
t re a t a s a b e a r i s h
o rd e r b l o c k

DISTRIBUTION 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
p r i c e p u s h e s a b ove 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
highest candles body i s t h e s e l l t r i g g e r

clearing out buyside

liquidity 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 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 H I G H ( S ) O F T H E 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 T I C K ( S )

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 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
RUN OUT BUYSIDE LIQUIDITY BEFORE DECLINING 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
I N S T I T U T I O N S

S CA L I N G I N 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
RECLAIMED
B LO C KS B LO C KS

THIS SIDE REPRESENTS THE DROP THIS SIDE REPRESENTS THE

I N TO T H E “ S U P P O R T L E V E L” 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
“OLD” ORDER O R D E R B LO C KS
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 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
I N TO T H E “ R E S I S TA N C E L E V E L” F R O M T H E “ R E S I S TA N C E L E V E L”

O L D
RECLAIMED
B LO C KS 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 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
T H E L AS T S I G N I F I CA N T U P CA N D L E D I S P L AC E M E N T S I N TO T H E O L D U P CA N D L E S
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

RECLAIMED BULLISH
“OLD” ORDER O R D E R B LO C KS
B LO C KS l owe r l ow s
D I S P L AC E M E N T S

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

price drops back down into a

multiple bullish order blocks bullish order block which is
are created indicating already predisposed to go higher
bullish order flow

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

bullish order block 50%

/LUCIUSTHE3RD
 PROPULSION
BLOCKS

price forms multiple bearish

order blocks giving an
indication for continuation t he underlying context
should be bearish

ORDER BLOCK when price trades back up into t he low of

t he propulsion 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
per fect
no trades in treat as a 100% deliver y
t his range candle filled of price
potential

buy
low bullish order
block potential

buy

shor t term low

t here is an absence of liquidity as t he market if bullish, look for a bullish order block/ t he entire range has been filled (a full return
opens trading at a higher price but it can be down candle which could stop t he gap from on a vacuum block) which means it has been
defined as t he “high” and “low ” of t he gap

filling entirely

completely balanced out

(using parameters as if it were a candle/range) t he order block can present a buying t his can present a different buying
oppor tunity oppor tunity

if price rallies you do not want it to trade

back down to t he fully filled vacuum block
again

CORRECTIVE MOVE POTENTIAL

IN UPWARD TREND 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 bearish order potential

block sell per fect

no trades in treat as a 100% deliver y
t his range candle filled of price

low

t here is an absence of liquidity as t he market if bearish, look for a bearish order block/ t he entire range has been filled (a full return
opens trading at a lower price but it can be up candle which could stop t he gap from on a vacuum block) which means it has been
defined as t he “high” and “low ” of t he gap

filling entirely

completely balanced out

(using parameters as if it were a candle/range) t he order block can present a selling t his can present a different selling
oppor tunity 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 POTENTIAL

DOWNWARD TREND EXHAUSTION GAP
MORE PROBABLE LESS PROBABLE

/LUCIUSTHE3RD