ICT Order Blocks: Mean Threshold and Propulsion Block Trading

When we leave this consolidation inside this order block, it drops down

into here. Mean threshold is half of the order block,

so half of this

range. This is what you wanna do with your fair

value gaps and what you think is an

order block. In my mind, I'm watching...

On a bullish order block, I'm watching the high to the midpoint.

I wanna see it show a willingness to support price,

preferably hit it and quit it, and run the,

the other direction real quick.

That's what I'm really looking for.

But if it starts doing this, and as long as it's respecting

that midpoint down

here, I'm okay with it. I'm more specifically gonna be watching

if it starts to

consolid- I might go in with, like, six contracts.

Like, I'm doing my typical go in, I buy six contracts,

and I'm gonna try to parlay

it up and build a bigger position. What would I do?

In this instance, using the order block, I'm going in right there at that price.

I'd be going long on the first return to it there.

So I would go long six contracts there. As it's digging down, I'm gonna watch.

Does it wanna go to the mean threshold?

Mean threshold is half of an order block, or half of a breaker, or half a

mitigation block. Then I would buy three right here on this

candle as it hits the

mean threshold. So now would be long nine contracts.

If it runs like it does here, and then one more time pumps into it one

more time,

then I'll do my one last contract, and I'd be long net 10 contracts.

Six, three, one. Hoping that I can get the little wick

through the midpoint, trusting that it isn't gonna go the other side.

How can you trust it, ICT? Experience.

Knowing that it's likely to do what I'm explaining here,

and also being comfortable

with being wrong, because I can be wrong and be profitable.

I can be right and be not as profitable as I should've been.

There's a gray area where experience dictates the outcome.

When we see this range here, the midpoint of the, the order block,

once it leaves

it, okay, once it leaves that, what's this candle right here?

This is a propulsion block. It's an order block within this order

block,

so it's a nested level. I love this formation.

I love it. Let me show you why I love it. What's the opening price?

What's the opening price on that candle right there?

Four zero two nine point two five. That price to its

high, right in here, that is one of the most sensitive bullish order

blocks.

Responsive quick, sudden, like, it's like it...

Like, you wanna see a dynamic movement, it's gonna really do it on this.

Show me the order blocks that work. Well, here's that lesson.

This opening price to its high, that is the absolute most sensitive

area in order block theory. Four thousand twenty-nine and a quarter.

It goes through it. It leaves it on this candle. Does it not?

The next candle we open here, what's the low of that candle?

Four zero two nine point two five. Wait a minute. Wait a minute. Deja vu.

Something, something different here. No, it's exactly the same.

The run in price here, you have several things you can look at.

You have the buy side relative equal highs here.

So we have buy side here, and also, what is the highest closing price?

I'm gonna walk through the PD array matrix with you, okay?

And what else do you have? What's the highest high? Right there.

So this high, what have I taught you about that?

Wicks are gaps.

What? Wicks are gaps. Midpoint of that gap is consequent encroachment.

It's four thousand thirty-six even.

What is the closing price on that candle?

Four thousand thirty-six even. Yes, there's a small little wick.

I'm caring more specifically about the bodies because the bodies

are gonna tell you

the narrative. The wicks are where the damage is done.

Does it offer from this point here, buying into the

propulsion block, from here to the first rejection block

right here?

That's the first of your premium arrays. Does it offer five handles there?

What does it leave? It's a fair value gap, isn't it?

How do you know it's gonna stay open?

The propulsion block, this shouldn't stay open.

It should stay...

I'm sorry, it should stay open. It should not fill in.

This would act as what?

A breakaway gap. So if this is breaking away, I'm gonna expect what?

Price delivery to be more bullish candles, very

little retracement, and maybe one or two down close

candles. Everything else would be what? Bullish delivery. Buy side being offered.

How many down close candles do you have from the propulsion block to the

consequent

encroachment of the wick? You have one down close candle. Why

is that important?

You need to know the difference between signatures that are going to be favorable

for you. If you start seeing a lot of consolidation

and down close candles forming

and booking in a price run that you're in, chances are you're probably gonna hit a

retracement and come back on your stop loss, or it's not gonna go in your favor

anyway. So I'm looking at how does price

continuously deliver.

Is it giving me bullish candles? Is it staying bullish each time?

With the exception of this, this candle here, every candle

was bullish.

And I'm not worrying about all the little whipsaws back and forth because I'm not

gonna ram my stop loss up there, theoretically,

because I wanna see it do what?

I wouldn't even roll my stop up until this short-term high was taken out, 'cause

above that is what? A very small pool of buy-side liquidity.

Buy stops.

Anyone that's short, they would've trailed it from here to

here, and then we move

back into consolidation, and we're entering what time of day? Noon.

That's lunch.

Most of the time you're gonna be squaring your position before noon.