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ICT order blocks — institutional price zones

Order blocks are an important concept within ICT-style market analysis, used to identify areas where significant buying or selling activity may have influenced price.

A bullish order block is generally associated with an area of selling that occurs before a strong upward displacement, while a bearish order block is typically associated with buying before a significant downward move. The idea is to identify the price area that may become relevant again when the market returns to it.

However, an order block should not be treated as an automatic entry signal. Its significance becomes stronger when it aligns with market structure, liquidity, displacement, Fair Value Gaps , and clear price-action confirmation.

A professional approach is to first identify the broader market structure, then locate important liquidity levels and observe how price interacts with the potential order block. Traders can wait for a liquidity sweep, strong rejection, displacement, or a break in structure before considering a setup.

The key principle is simple: identify the zone, understand the context, wait for confirmation, and manage risk.

Order blocks are best used as areas of interest rather than guaranteed reversal points. Market conditions can change quickly, so disciplined execution and proper risk management remain essential.