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ICT Order Blocks (OBs)

How to build the ICT Order Blocks (OB) concept

Updated over 2 weeks ago

Mastering ICT OBs with Profectus.AI

This guide walks you through the Order Blocks (OB) concept as they are traded in the ICT community, built in Profectus.AI.

An Order Block is the last opposing candle before an impulsive move that leads to a market structure shift or displacement. There is often some uncertainty about what exactly a displacement is, but we’ve established a clear rule to make this completely mechanical. From an ICT perspective, this last opposing candle represents institutional order flow entering the market.
In the case of a Bullish Order Block, we are looking to identify the last Bearish candle before a bullish impulsive move happens.

Order Blocks are significant because they often act as:

  • Areas of accumulation or distribution

  • High-probability reaction zones

  • Structural support or resistance

Step 0: Access the Strategy Concept Template [1 Min]

Click the button to load the trading bot directly onto your canvas:

Your canvas should display 14 blocks. Check? Let's continue!

Step 1: Export the Trading Bot [1 Min]

Before diving into customization, export the bot with the upper right export button to download the file.

Step 2: Upload to MetaTrader 5 [4 Min]

Don’t know how? Refer to our help article "Exporting Your First Strategy".

Step 3: Understand the Logic [1 Min]

The Order Block should be used as a strategy component rather than a complete standalone strategy. It can be used on every candle, and it will check the following market conditions on every new candle:

  • Liquidity is being taken before the impulsive move

  • A clear impulsive move in 2 candles

  • Identify the last opposing candle before the impulsive move

To build the complete Bullish OB module, we used the following rules:

  • Run per candle block. Start with this block to make sure that every new candle that is formed on the chart, the EA runs through the whole process of finding an OB, again and again.

  • Defining the OB using Trade Rule blocks. The 6 blocks that follow house the criteria for the OB. We already established that the OB is a 3-candle pattern with:
    2.1. Liquidity grab
    2.2. Candles 1 and 2 showing impulsive strength
    2.3 The new rule here is the Liquidity grab. The low of candle ID 3 needs to be lower than the low of candle ID 4 to indicate a grab of liquidity on previous lows.

  • Store the OB price levels. Once an OB is found, we store it in a variable so that we can use this variable later to identify if the price comes back to it.

  • Define a break of the OB to invalidate and remove it. A candle closing below the low of the Bullish OB invalidates the OB and deletes the OB price levels from the system.

These characteristics make Order Blocks objective zones of interest rather than subjective trade entries. However, on lower timeframes, when stacked with other confluences, Order Blocks can be used to place trade orders directly.

Step 4: Make It Your Own [10 Min]

You can adjust and experiment:

  • Add more strategy rules or include the OB component in your own strategies

    • EXPORT and see the differences.

  • Add the Bearish OB side to take selling opportunities as well

    • EXPORT and see the differences

  • Play around with timeframes and assets

    • EXPORT and see the differences.

  • Refine the rules to fit your own interpretation of the ICT Order Block concept

    • EXPORT and see the differences.

Conclusion

The Order Block is a popular ICT or Smart Money component: simple rules and universal application. Now it’s your turn — backtest it, tweak it, and evolve it into your own winning system.

👉 Try the PRO version today

Templates are for educational purposes only.

Now it's your turn—apply the template, tweak the logic, and make it yours. 🚀

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