@franklin.trading: Order blocks are specific price zones where large institutions execute heavy buying or selling before a major market move. Rather than acting like traditional retail support and resistance, these zones represent institutional footprints where price is likely to return to fill remaining orders or rebalance inefficiencies. Understanding the different variations helps traders read market structure, spot liquidity traps, and time high-probability entries. The Original Order Block is the foundational setup in the ICT framework. A bullish order block is the last down-close (bearish) candle right before a strong upward impulse move, while a bearish order block is the last up-close (bullish) candle before a sharp drop. For an original order block to be valid, the move away from it must show aggressive displacement that often leaves behind a Fair Value Gap. When price eventually pulls back to this candle, institutional orders sitting at the open or the 50% midpoint (mean threshold) typically push price away in the original trend direction. A Breaker Block occurs when an original order block fails to hold and price slices right through it. This happens after price sweeps an old high or low to grab liquidity, then aggressively reverses to break market structure in the opposite direction. Because traders who entered on the initial order block are now trapped in losing positions, that failed zone flips its role. When price returns to retest the breaker block, institutions use the bounce to close out old losing trades and fuel the new trend, turning broken support into resistance or broken resistance into support. The Mitigation Block looks similar to a breaker block, as both involve a failed order block and a shift in market structure. However, a mitigation block forms when price fails to sweep a prior swing high or low before reversing. Instead of taking out external liquidity, price makes a weaker swing—such as a lower high in a downtrend—and then breaks structure downward. When price pulls back into this failed block, institutions are primarily mitigating, or clearing, their drawdown from earlier positions before continuing the new directional move. A Rejection Block focuses on long candlestick wicks rather than the candle bodies. It forms at swing highs or swing lows when price spikes aggressively to sweep liquidity, only to be sharply refused before the candle closes. The rejection block is defined by the price range between the tip of the wick and the open or close of the candle body. Traders watch this wick area because price often returns to test the highest or lowest candle body within that swing before reversing strongly away. The Propulsion Block is a continuation pattern that builds directly on an existing order block. It forms when price pulls back into a previously established order block, respects its 50% mean threshold, and immediately launches away with strong momentum. A Reclaimed Order Block is an older zone that gets used twice during a broader Market Maker Buy or Sell Model. On the first pass of a market cycle, institutions briefly use the candle to hedge or accumulate positions, causing a minor bounce before price temporarily moves past it. Once the market hits its major liquidity target and reverses onto the other side of the price curve, price returns to "reclaim" that exact same block. It then acts as a reliable support or resistance level to propel price toward the final profit target. Finally Order Blocks usually appear during high-impact news releases, weekend market opens or sudden liquidity voids where price jumps instantaneously from one level to another without trading in between. Because the market hates unfilled pricing inefficiencies, the algorithm frequently drives price back into the vacuum block later to rebalance the missing orders before resuming its primary trend. #forextrading #tradingstrategy #forex #forextrader #tradingeducation

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Wednesday 11 November 2026 21:26:52 GMT