ICT & SMC Advanced Module

Lesson 08: Order Block (OB) & Breaker Block (BB)

Many know about it, but not exactly how to identify it. Let's learn properly now.

📌 Special Feature of This Lesson

We're going to talk about a topic that many people know about. But they don't know it exactly. That means they know the topic but don't know exactly how to identify it. Let's look at this PDF properly to understand what this is and how to identify it.

📋 Topics in This Lesson

1) Order Block (OB)
2) Breaker Block (BB)

🎯 What is an Order Block (OB)?

There are two types of order blocks in this market. They are Bullish Order Block and Bearish Order Block. Now let's talk about these separately.

1) Bullish Order Block

A Bullish order block is an order block that forms on the buy side. We can see this Bullish order block in an uptrend.

2) Bearish Order Block

A Bearish order block is an order block that forms on the sell side. We can see this Bearish order block in a downtrend.

⚡ How to Properly Identify an Order Block?

Now you've seen what an order block is. Let's now look at how an order block forms and how to properly identify an order block.

Condition 1 - FVG: After an Order Block forms, the next candle MUST be an FVG. We don't take those that form without it as order blocks. If we take them and analyze, there's a high probability that analysis will be wrong.
Condition 2 - BOS/CHOCH: The next condition is that after an Order block forms, there MUST be a BOS or CHOCH. Otherwise, we can't properly call that formation an Order block.
Condition 3 - Imbalance: The third and final condition is that after an Order Block forms, there must be an Imbalance from the OB until the BOS or CHOCH forms. This condition must also be complete for an Order Block to form properly. Here, check carefully if an imbalance has formed.

🔷 Breaker Block (BB)

If an FVG forms after an ORDER BLOCK forms, we call that a BREAKER BLOCK.

🎯 Using Order Block for Sniper Entry

So that's how we need to know about Order blocks and breaker blocks. Normally in analysis, an order block is a very important thing. Simply put, this is very important for taking a sniper entry.

📌 Practical Application

Identify the Order Block, wait for price to pullback to the OB zone. Take entry as soon as pullback arrives. Place Stop Loss below the OB (for Bullish OB) or above (for Bearish OB). Place Take Profit at the next resistance/support level.

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