@cryptotrading_insights: Valid vs Invalid Order Blocks (ICT SMC) | Avoid Fake Order Blocks | Smart Money Concepts Order Block in ICT SMC (Simple & Clear) What is an Order Block? An Order Block (OB) is the last opposite candle before a major market move. It represents the area where smart money (institutions) placed large buy/sell orders. Bullish OB = last down candle before price moves strongly up. Bearish OB = last up candle before price moves strongly down. Order blocks act like supply & demand zones, and price usually returns to them to rebalance, accumulate, or mitigate positions. Valid Order Block (ICT Rules) A valid OB must show smart-money behavior. Requirements: ✅ 1. Must cause a Market Structure Shift (MSS/BOS) Price must break a significant high/low after leaving the OB. ✅ 2. Price leaves the OB with displacement Strong, clean imbalance or FVG confirms institutional activity. ✅ 3. Liquidity must be taken first Before the move, price should sweep: Equal highs/lows Buyside/Sellside Liquidity (BSL/SSL) Liquidity → OB → Displacement. ✅ 4. OB must be respected on return (mitigation) When price revisits the OB: It should react Show rejection wicks Or form an entry pattern (CHoCH, shift, FVG, etc.) Valid Example Narrative: Price sweeps sell-side liquidity → forms a bullish OB → strong displacement → breaks structure → price returns → mitigates OB → rally continues. Invalid Order Block An OB is invalid if it does NOT show institutional confirmation. ❌ 1. No market structure shift If price didn’t break any high/low after the candle → invalid. ❌ 2. Weak or no displacement If the move away is slow, choppy, or without imbalance → retail move, not smart money. ❌ 3. Price violates the OB completely If price closes below (bullish) or above (bearish) the OB body → invalid or mitigated already. ❌ 4. No liquidity grab before forming the OB A good OB must form after liquidity is taken. ❌ 5. OB is not fresh Used or tapped multiple times → loses power. ❌ 6. OB forms in the wrong narrative Examples: In premium when looking for longs In discount when looking for shorts Against higher timeframe bias Quick Identification Checklist Bullish Valid OB Sweep SSL Last down candle Big displacement up + FVG BOS/MSS Return to discount → mitigation Bullish continuation Bearish Valid OB Sweep BSL Last up candle Strong displacement down Break of structure Return to premium → mitigation Bearish continuation #ictsmc #marketstructure #liquidity #validorderblock #invalidorderblock

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Thursday 27 November 2025 15:31:08 GMT