Order Block Finder
Free Order block Calculator for ict & smc tools. Enter your numbers to see returns, costs, and optimized scenarios instantly.
Formula
Bullish OB: Zone = Open to Low | Bearish OB: Zone = High to Close | Midpoint = (Top + Bottom) / 2
For a bullish order block, the zone extends from the candle's open (or close, whichever is higher) down to its low. For a bearish order block, the zone extends from the candle's high down to its close (or open, whichever is lower). The midpoint is the average of the zone's top and bottom, serving as a precision entry level.
Worked Examples
Example 1: Bullish Order Block on EUR/USD
Problem: Last down candle before up move: Open 1.0880, Close 1.0870, High 1.0885, Low 1.0865. Calculate the OB zone.
Solution: OB Top = Open (higher of open/close) = 1.0880\nOB Bottom = Low = 1.0865\nMidpoint = (1.0880 + 1.0865) / 2 = 1.08725\nOB Size = 1.0880 - 1.0865 = 15 pips\nInvalidation = Below 1.0865
Result: Bullish OB: 1.0865–1.0880 | Midpoint: 1.08725 | Invalidation: 1.0865
Example 2: Bearish Order Block on GBP/USD
Problem: Last up candle before down move: Open 1.2740, Close 1.2760, High 1.2770, Low 1.2735. Calculate the OB zone.
Solution: OB Top = High = 1.2770\nOB Bottom = Close (lower of open/close) = 1.2740\nMidpoint = (1.2770 + 1.2740) / 2 = 1.2755\nOB Size = 1.2770 - 1.2740 = 30 pips\nInvalidation = Above 1.2770
Result: Bearish OB: 1.2740–1.2770 | Midpoint: 1.2755 | Invalidation: 1.2770
Frequently Asked Questions
What is an Order Block in ICT trading?
An Order Block (OB) is a specific price zone identified in ICT (Inner Circle Trader) methodology that represents the last opposing candle before a significant price movement. For a bullish order block, it is the last bearish (down) candle before a strong bullish impulse move that breaks market structure to the upside. For a bearish order block, it is the last bullish (up) candle before a strong bearish impulse move that breaks structure to the downside. Order blocks represent areas where institutional traders and market makers placed large orders, creating a supply or demand zone that price is likely to revisit. They serve as high-probability entry zones when price returns to them.
How do you identify a valid Order Block?
A valid order block must meet several criteria in ICT methodology. First, the candle must be the last opposing candle before an impulsive move. Second, the impulse move following the OB must cause a break of market structure, meaning it takes out a significant swing high or swing low. Third, the order block should ideally contain a fair value gap within or near it for added confluence. Fourth, volume analysis should show increased activity around the OB candle. An order block that does not lead to a structure break is not considered valid. Higher timeframe order blocks carry more significance than lower timeframe ones, and order blocks aligned with the overall trend direction have higher success rates.
What is the Order Block midpoint and why does it matter?
The Order Block midpoint, also known as the mean threshold or 50% level of the OB, is calculated by averaging the top and bottom of the order block zone. This level is significant because institutional algorithms often target the midpoint for order fills rather than the extreme edges. When price returns to an order block, it may only reach the midpoint before reversing, especially in strong trending markets. Traders who place entries at the midpoint get a better fill compared to those waiting at the extreme edge, though the probability of getting filled is slightly lower. Using the midpoint allows for tighter stop losses and improved risk-to-reward ratios on OB trades.
When is an Order Block considered invalidated?
An order block is considered invalidated when price closes through the entire zone on the opposite side. For a bullish order block, invalidation occurs when price closes below the low of the OB candle, indicating that the demand zone has been broken and the institutional orders have been absorbed. For a bearish order block, invalidation happens when price closes above the high of the OB candle. It is important to note that a wick through the OB extreme does not necessarily invalidate it — only a candle close beyond the level confirms invalidation. Once an OB is invalidated, the zone may flip from support to resistance or vice versa, creating a potential trap for traders still holding positions.
How do you trade Order Blocks with proper risk management?
To trade an order block effectively, first identify a valid OB on a higher timeframe that aligns with your bias. Drop to a lower timeframe to refine your entry within the OB zone. Place your entry at the OB midpoint or at the extreme edge depending on your risk tolerance. For bullish OBs, set your stop loss 1-3 pips below the OB low (the invalidation level). For bearish OBs, place it 1-3 pips above the OB high. Target the opposing liquidity pool, the next order block, or use a minimum 1:3 risk-reward ratio. Never risk more than 1-2% of your account per OB trade. Use additional confluence like fair value gaps, OTE levels, and killzone timing to increase the probability of success.
What is the difference between a market order and a limit order in forex?
A market order executes immediately at the current price. A limit order sets a specific price at which you want to enter or exit. Buy limits are placed below the current price; sell limits are placed above. Limit orders help you enter at more favorable prices but may not fill.