Propulsion Block Calculator
Identify propulsion blocks (order blocks within FVGs) for high-probability ICT trade entries. Enter values for instant results with step-by-step formulas.
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer
Propulsion Block Calculator
Calculator
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Formula: Propulsion Block = Overlap(OB, FVG) where Overlap High = min(OB High, FVG High), Overlap Low = max(OB Low, FVG Low)
Worked example — Propulsion Block: 1.0880-1.0900 (20 pips) | 100% OB overlap | Entry: 1.0880 | SL: 1.0870 | TP1: 1.0920
Formula
Propulsion Block = Overlap(OB, FVG) where Overlap High = min(OB High, FVG High), Overlap Low = max(OB Low, FVG Low)
The propulsion block is the intersection zone where the Order Block and Fair Value Gap overlap. The overlap high is the lower of the two highs, and the overlap low is the higher of the two lows. This zone represents concentrated institutional interest within a price inefficiency.
Worked Examples
Example 1: Bullish Propulsion Block on EUR/USD
Problem:An Order Block spans 1.0880-1.0900 and a Fair Value Gap spans 1.0870-1.0910 on the 1-hour chart. Calculate the propulsion block and trading levels.
Solution:OB Range: 1.0880 - 1.0900 (20 pips) FVG Range: 1.0870 - 1.0910 (40 pips) Overlap (Propulsion Block): max(1.0880, 1.0870) to min(1.0900, 1.0910) = 1.0880 - 1.0900 Propulsion Block Size: 20 pips OB Overlap: 100% (entire OB within FVG) Midpoint: 1.0890 Optimal Entry: 1.0880 (block low) Stop Loss: 1.0870 (10 pips below) TP1 (2R): 1.0900 + 0.0020 = 1.0920
Result:Propulsion Block: 1.0880-1.0900 (20 pips) | 100% OB overlap | Entry: 1.0880 | SL: 1.0870 | TP1: 1.0920
Example 2: Bearish Propulsion Block on GBP/USD
Problem:A bearish OB spans 1.2740-1.2760 and an FVG spans 1.2730-1.2755. Current price is 1.2720. Calculate the propulsion block.
Solution:OB Range: 1.2740 - 1.2760 (20 pips) FVG Range: 1.2730 - 1.2755 (25 pips) Overlap: max(1.2740, 1.2730) to min(1.2760, 1.2755) = 1.2740 - 1.2755 Propulsion Block Size: 15 pips OB Overlap: 15/20 = 75% FVG Overlap: 15/25 = 60% Midpoint: 1.27475 Optimal Short Entry: 1.2755 (block high) Stop Loss: 1.27625 (7.5 pips above)
Result:Propulsion Block: 1.2740-1.2755 (15 pips) | 75% OB overlap | Short Entry: 1.2755 | SL: 1.27625
Frequently Asked Questions
What is a Propulsion Block in ICT trading methodology?
A Propulsion Block is an advanced ICT concept that occurs when an Order Block (OB) forms within a Fair Value Gap (FVG). This confluence creates a particularly powerful institutional reference point because it combines two significant market structure elements. The order block represents an area of concentrated institutional buying or selling, while the fair value gap represents a price inefficiency that algorithms tend to revisit. When these two elements overlap, the resulting propulsion block acts as a high-probability reaction zone that can propel price strongly in the anticipated direction. The term propulsion refers to the forceful price movement expected when this level is tested.
How do you identify a valid Propulsion Block on a price chart?
To identify a valid Propulsion Block, you need to find an area where an Order Block and a Fair Value Gap overlap on the same timeframe. First, locate a Fair Value Gap by finding three consecutive candles where candle one and candle three do not overlap. Second, within that same price region, identify an Order Block, which is the last opposing candle before a strong displacement move. The propulsion block is the specific price zone where the OB body intersects with the FVG range. The overlap zone is what matters most. A larger overlap percentage generally indicates a stronger propulsion block, with overlaps of 50% or more considered ideal for high-probability setups.
What makes a Propulsion Block different from a regular Order Block?
While a regular Order Block is simply the last opposing candle before a strong move, a Propulsion Block has the additional qualification of being embedded within a Fair Value Gap. This dual confluence makes propulsion blocks significantly more reliable than standalone order blocks. Regular order blocks may or may not produce reactions because they lack the additional confirmation of being within an inefficiency. Propulsion blocks, however, represent areas where institutional orders were placed within a known price imbalance, making them magnets for algorithmic price delivery. In terms of win rate, many ICT practitioners report that propulsion blocks produce reactions approximately 70-80% of the time versus 50-60% for standalone order blocks.
How should you trade a bullish Propulsion Block setup?
For a bullish Propulsion Block, you expect price to return to the overlap zone and bounce higher. The optimal entry is at or near the lower boundary of the propulsion block, which represents the most discounted price within the zone. Place your stop loss below the propulsion block low, typically 50-100% of the block size beyond the bottom edge to allow for slight wicks. The first take-profit target should be at minimum 2:1 risk-to-reward, often at the next opposing liquidity level such as a swing high or previous session high. Trail the stop to break-even once the first target is reached, and let the remaining position run toward the 3:1 and 5:1 extensions for maximum profit capture.
What timeframes work best for Propulsion Block analysis?
Propulsion Blocks are most effective on the 15-minute to 4-hour timeframes for forex trading. The 1-hour timeframe is considered the sweet spot by many ICT traders because it provides enough clarity to identify both the FVG and OB components while filtering out noise present on lower timeframes. For entry refinement, once a propulsion block is identified on the 1-hour chart, dropping to the 5-minute or 15-minute chart for precise entry timing is common practice. Higher timeframes (daily, weekly) produce propulsion blocks that carry more significance but form less frequently. For day trading, focus on 15-minute to 1-hour propulsion blocks. For swing trading, the 4-hour and daily charts provide the most reliable setups.
How does the size of the overlap zone affect the probability of the setup?
The overlap percentage between the Order Block and the Fair Value Gap directly impacts the quality and reliability of the propulsion block setup. When the OB is almost entirely contained within the FVG (overlap greater than 80%), the propulsion block is considered premium quality with the highest probability of a strong reaction. An overlap of 50-80% is considered good quality and still provides reliable setups. Overlaps below 50% are weaker because less of the institutional positioning (OB) coincides with the price inefficiency (FVG). The size in pips also matters because extremely small propulsion blocks of less than 5 pips provide little room for order placement and can be easily swept through without meaningful reactions.
Can multiple Propulsion Blocks stack at the same price level?
Yes, and when multiple propulsion blocks from different timeframes converge at the same price level, it creates an extremely high-probability reaction zone. For example, a 1-hour propulsion block that aligns with a 4-hour propulsion block at the same price area provides multi-timeframe confluence that institutional algorithms respect. Additionally, a propulsion block can form within an older propulsion block, creating a nested structure that intensifies the institutional significance of the level. Traders who identify these stacked or nested propulsion blocks should prioritize them over single-timeframe setups and consider using larger position sizes when risk management allows, as the reaction probability is substantially higher.
What invalidates a Propulsion Block setup?
A Propulsion Block is invalidated when price closes completely beyond the block with a displacement candle, meaning a large-bodied candle with strong momentum through the entire zone. A simple wick through the block is not invalidation and may actually represent the final liquidity sweep before the intended move. The block is also weakened after it has been tested twice without a significant reaction, as the institutional orders at that level may have been filled. Time decay also plays a role since propulsion blocks older than two weeks on intraday timeframes tend to lose their effectiveness as market conditions evolve. If the higher timeframe market structure changes against the propulsion block direction, the setup should be abandoned regardless.
How do Propulsion Blocks fit into a complete ICT trading plan?
Propulsion Blocks serve as precision entry tools within a complete ICT trading plan. The full workflow begins with higher timeframe analysis to determine weekly and daily bias using market structure and premium/discount arrays. Next, identify key levels including NWOG, NDOG, and dealing range extremes for directional context. Then, during killzone sessions (London or New York opens), look for propulsion blocks that align with the established bias. Enter at the propulsion block with confirmation from a lower timeframe market structure shift or displacement candle. Use the propulsion block boundaries for stop placement and opposing liquidity levels for targets. This systematic approach ensures propulsion blocks are traded within context rather than in isolation.
References
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer · Editorial policy
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