ICT Order Block (OB) Explained

What is Order Block in ICT?

A candle or price range associated with the origin of a meaningful displacement move that breaks structure or changes delivery.

Definition of Order Block

Common ICT convention: bullish OB is the last down-close candle before bullish displacement; bearish OB is the last up-close candle before bearish displacement.

How to identify Order Block

Find displacement first, identify the relevant final opposing candle before it, mark its range using a consistent body/wick convention, and check structure/context.

Bullish Order Block example

last bearish candle before an impulsive break above a swing high; price retraces into its range and reacts.

Bearish Order Block example

last bullish candle before a strong break lower; retest may reject.

Order Block chart examples

Practical trading example

After SSL is swept, price rallies through an internal high leaving an FVG; mark the last down-close candle before the rally as a candidate bullish OB.

Common mistakes and important notes

Not every opposite-colour candle is an OB. Candle selection, range boundaries and mitigation rules vary; the zone can fail.

Related ICT concepts

Part of Order Blocks and PD Arrays. New to ICT? Start with the beginner guide.