Order Blocks Explained: A Strict, Testable Definition
The order block (OB) is among the most subjective ICT ideas, because tutorials mark it after the fact. A rule-based version has to be strict.
The strict definition
- Bullish order block: the last bearish candle before a bullish displacement candle that causes a structure break (a BOS, CHoCH or MSS) within two candles.
- Bearish order block: the last bullish candle before a bearish displacement with the same conditions.
The zone is the high–low range of that candle.
The logic
The candle before an aggressive move is where the last opposing orders were absorbed. Price may return to that zone before continuing — similar in spirit to a retrace into a fair value gap.
Mitigation and invalidation
- Mitigated: price trades back into the block.
- Invalidated: a candle closes through the far side (for a bullish OB, below its low).
Blocks are never deleted, only their status changes.
Not mandatory
Order blocks are optional in BlessedForex. They can be used as an entry mode (order block touch) or in confluence with a fair value gap, or ignored entirely.
Practical tips
- Prefer blocks created by a real displacement that swept liquidity.
- Prefer the first return to the zone; repeated tests weaken it.
- Keep the block inside a favourable premium/discount area.
Honest limits
Different educators draw OBs differently (body only, full candle, last two candles). There is no consensus, so the only fair way to judge an OB rule is to backtest it against alternatives — see how to backtest properly.
Questions & answers
Is the order block the whole candle or just the body?
Definitions vary. BlessedForex uses the full high-low range of the candle for a strict, reproducible zone. Test body-only variants if you prefer them.
How far back do I look for the opposing candle?
A few candles before the displacement. BlessedForex searches up to five candles back and takes the nearest opposing one.
Do I need an order block for a valid setup?
No. It is optional and disabled as a requirement by default; fair value gaps drive the default entry.
When is an order block invalid?
When a candle closes through its far side, for example below the low of a bullish order block.