SMC
ICT ORDER BLOCKS
VS
INSTITUTIONAL ORDER BVLOCKS
WHAT IS AN ORDER BLOCK
✓Order blocks in forex refer to the collection of
orders of big banks and institutions in forex
trading.
✓The big banks do not just open a buy/sell
order, but they distribute a single order into a
check of blocks to maximize the profit
potential.
✓These chunks of orders are called order blocks
in trading
TYPES OF ORDER BLOCKS
ICT ORDER BLOCK INSTITUTIONAL ORDER BLOCK
✓ ICT order block are orders by
institutions and big banks in the forex ✓ Institutional order block
market, these order create market are major zones where big
consolidations and form structures banks and institutions get
that determine the dominant trend in and out of the market.
of the forex market.
✓ These order block structures are best ✓ These institutional order
seen on higher timeframes, when blocks were created by
done correctly order block trading these banks in the first
can be a major backbone to any place, these zones become
trading strategy. strong potential areas
✓ Because ICT order block are better where these institutions
formed on higher time frames, it look out for the big moves.
helps you as a trader to focus only on
the big move's setup alone; building
discipline and patience
ICT ORDER BLOCKS
This is an order block that is created by the last candle before the start of the current
liquidity void
If we having a bullish liquidity void then it will be the last red candle from where the void
started.
It is believed that the price might run away with a liquidity void but it will have to come for a
refill then it continues with its move.
Check illustrations below
ICT Bu OB
(last red candle)
ICT Bu OB
(last red candle)
INSTITUTIONAL ORDER BLOCK
This is an order block that is created by the by a consolidation during a liquidity void before
the market continue moving on its current trend.
If we having a bullish trend and a bullish liquidity void then it will be the consolidation during
the bullish trend.
It is believed that the price might run away with a liquidity void in a bullish trend but it will
have to come for a refill then it continues with its trend.
Check illustrations below
Bu OB
(Consolidation)
Bu OB
(Consolidation)
TIPS DURING ORDER BLOCK ACTIVATION
✓The market will start rejecting in the zone
✓The market will create short bodies of the candles
that are running to activate the order block
✓The market is likely to break out from the zone when
activating an order block(Liquidity injection) thus wait
for the market to come above from the zone in case if
it’s a bullish order block.
✓Set stop more pips away from the zone because it
might come after two candles to violate and inject
liquidity.
LIQUIDITY INJECTION ON ORDER BLOCKS
OFFICIAL ORDER BLOCK ICT ORDER BLOCK
RETAILERS STOP LOSSES/SELL STOPS
RETAILERS STOP LOSSES/SELL STOPS
LIQUIDITY INJECTION LIQUIDITY INJECTION
Set stop more pips away from the zone because it might come after
two candles to violate and inject liquidity.
ORDER BLOCK ACTIVATION
The market can be playing on a certain
level then it can be able to retest the
BANKS LIQUIDITY LEVEL level several times, but you find out that
there’s an inactivated bullish order block
below the level so before it starts moving
there are 98% chances of it running
below to activate it then resume the
trend
BULLISH UNACTIVATED ORDER BLOCK
The market can be playing on a certain
activated order block then it can be able
to retest the order block several times,
but you find out that there’s an
BULLISH ACTIVATED ORDER BLOCK unobeyed sensitive level below the
activated order block so before it starts
moving there are 98% chances of it
running below to obey it then resume
the trend
BANKS LIQUIDITY LEVEL
ORDER BLOCK ACTIVATION
When we can check the setup, you will see that
initially we had two levels as our bullish order block
and our recent swing low
We were expecting the market to activate the order
block then continue with the trend
Unfortunately, the market decided to activate the
order block first but failed continue with the trend
before it managed to run below to create/obey the
previous swing low whereby it became our banks
liquidity level
Always expect two possible moves and do not set
stop loss on either of the two levels
If you clearly check how this setup was made you will
see that the market managed to continue with the
trend after a creation of a banks liquidity level
Only patience is needed because sometimes not all
our prediction will go according at the exact level but
at the end, we win what we predicted
