ICT Propulsion Block Explained: The Order Block Upgrade Most Traders Miss

Most traders learn order blocks and stop there. They mark the last opposing candle before a break of structure, wait for a retest, and take the trade. It works often enough to keep them interested, but the win rate sits somewhere between decent and frustrating.

The propulsion block solves that problem. It is a refined order block -- one that carries a second layer of institutional confirmation baked into its structure. When you understand what it is, how to identify it, and why it behaves differently from a standard OB, your retest trades get sharper and your invalidation levels become cleaner.

What Is a Propulsion Block?

A propulsion block is the displacement candle (candle 2) within a fair value gap that caused the imbalance. It is the candle whose body created the gap between candle 1's wick and candle 3's wick. The propulsion block gives you a more precise reference point within the FVG for entries and invalidation.

Here is the distinction that matters:

• A standard order block is the last opposing candle before a significant price move that causes a break of structure
• A fair value gap is the three-candle imbalance pattern where candle 1's wick does not overlap candle 3's wick
• A propulsion block is the body of candle 2 inside that FVG -- the displacement candle that actually created the imbalance

The name comes from the force of the candle: it propelled price so aggressively that it left a gap. When price returns to the body of this candle, the reaction tends to be sharp because this is where the strongest institutional order flow occurred within the imbalance.

Bullish Propulsion Block

A bullish propulsion block forms when:

1. A bullish fair value gap appears -- candle 1's high does not reach candle 3's low
2. Candle 2 is the large bullish displacement candle that created the gap
3. The body of candle 2 (open to close) is your propulsion block
4. When price retraces into this zone, the body of candle 2 acts as a high-probability support level

The key level within the propulsion block is the mean threshold (50% of candle 2's range). Price holding above this level on a retest confirms the propulsion block is still valid.

Bearish Propulsion Block

The mirror image:

1. A bearish fair value gap appears -- candle 1's low does not reach candle 3's high
2. Candle 2 is the large bearish displacement candle that created the gap
3. The body of candle 2 (open to close) is your propulsion block
4. When price retraces into this zone, the body of candle 2 acts as a high-probability resistance level

Price closing above the mean threshold of a bearish propulsion block invalidates it.

Why Propulsion Blocks Outperform Standard Order Blocks

There are three reasons propulsion blocks are considered higher-probability than regular order blocks. None of them are theoretical -- they all show up in the price action.

Double Validation

A regular order block has one layer of institutional intent: the candle where smart money accumulated before driving price in their direction. A propulsion block has two. The original order block marks where the initial positioning occurred. The propulsion block candle marks where institutions re-engaged with the level, confirming that the original orders were still being defended.

When price returns to a propulsion block, it is hitting a zone where institutions showed interest twice. That is why the reaction tends to be faster and more aggressive.

Built-In Invalidation

Standard order blocks give you a range to work with, but invalidation can be subjective. When exactly has the OB failed -- the wick through the bottom, the body close below it, or the full candle close below the entire zone? Traders argue about this constantly.

Propulsion blocks eliminate that ambiguity with the mean threshold rule, which is covered in detail below. You have a precise 50% level that tells you whether the block is still valid or broken. There is no guesswork.

The Bodies Tell the Story

One of the most reliable signatures of a valid propulsion block is how candle bodies behave around it. When a propulsion block is being respected, you will see wicks probe through the level but bodies consistently close on the correct side. For a bullish propulsion block, bodies stay above the zone. For a bearish one, bodies remain below.

This is not unique to propulsion blocks -- ICT teaches body analysis across all PD arrays -- but the pattern is especially pronounced here because of the dual-layered institutional interest at the level.

The Mean Threshold: Your Precision Level

The mean threshold is the single most important concept when trading propulsion blocks. It is the 50% level of the propulsion block candle, and it serves as both your precision entry and your invalidation line.

How to Find It

1. Identify the propulsion block candle
2. Measure from the candle's high to its low
3. The midpoint is the mean threshold

On most charting platforms, you can use a horizontal line or a Fibonacci retracement tool set to 0.5 to mark it quickly.

How to Use It

For bullish propulsion blocks:

• Price should react at or above the mean threshold
• Candle bodies should not close below the mean threshold
• If they do, the propulsion block is no longer a strong institutional reference point

For bearish propulsion blocks:

• Price should react at or below the mean threshold
• Candle bodies should not close above the mean threshold
• A body close above it invalidates the setup

This is the rule that separates propulsion blocks from the fuzzy "zones" that most order block traders work with. You have a hard line. Respect it.

Step-by-Step: Identifying a Propulsion Block

Here is the complete identification process, from the higher timeframe context down to the entry-level confirmation.

Step 1: Establish the Trend Direction

Before you look for propulsion blocks, you need a clear directional bias from a higher timeframe. If you are working off the 15-minute chart for entries, your directional context comes from the 1-hour or 4-hour. If you are using the 5-minute for entries, the 15-minute or 1-hour frames the bias.

The goal is simple: know whether you are looking for bullish or bearish propulsion blocks before you start marking anything. This aligns with top-down analysis principles -- you never trade a lower timeframe level against higher timeframe intent.

Step 2: Identify the Origin Order Block

Find the last opposing candle before a break of structure. This is your standard order block identification:

• Bullish: The last bearish candle before a swing high is broken to the upside
• Bearish: The last bullish candle before a swing low is broken to the downside

Mark the full range of this candle (open to close, or high to low depending on your preference). This is the origin -- the order block that the propulsion block will dig into.

Step 3: Watch for the Retrace Into the Order Block

After the break of structure, price will retrace. You are watching for a candle that trades back into the origin order block. This is the critical part. The candle does not just approach the order block -- it physically enters the range.

For a bullish setup: a bearish candle retraces and its body or wick enters the bullish order block zone.

For a bearish setup: a bullish candle retraces and enters the bearish order block zone.

Step 4: Confirm the Propulsion Block

The candle that traded into the order block is now your propulsion block. Mark it separately. Draw the mean threshold at 50% of this candle's range.

Step 5: Wait for the Retest

The setup is complete when price returns to the propulsion block in the future. Your entry is at or near the propulsion block, with the mean threshold as your precision reference.

Trading the Propulsion Block Retest

Once you have identified a propulsion block and price is returning to it, the execution framework is straightforward.

Entry Options

You have two primary entry methods:

1. Aggressive entry at the tip: Enter as soon as price touches the edge of the propulsion block (the high of a bearish PB candle, or the low of a bullish PB candle). This gives you the tightest stop loss but requires confidence in the level.

2. Entry at the mean threshold: Wait for price to trade into the propulsion block and approach the 50% level. This gives you a better average price and slightly more confirmation, but you risk price reacting before reaching it.

Both are valid. If you are newer to propulsion blocks, the mean threshold entry gives you more margin for error. If you have backtested the concept and trust the level, the aggressive entry maximizes your risk-to-reward.

Stop Loss Placement

Your stop loss goes beyond the propulsion block:

• Bullish PB: Stop below the low of the propulsion block candle
• Bearish PB: Stop above the high of the propulsion block candle

If price drives through the entire propulsion block candle, the institutional thesis is broken and you want to be out. There is no reason to give it more room than the candle itself provides.

Targets

Propulsion blocks are continuation trades. Your target should reflect that:

• First target: The most recent swing high (bullish) or swing low (bearish) -- often where relative equal highs or lows create a liquidity pool
• Extended target: The draw on liquidity from the higher timeframe -- this could be a fair value gap, a higher timeframe order block, or a liquidity void that price needs to fill
• Final target: The next premium or discount array in the PD array matrix

Because propulsion blocks are high-probability levels, they often mark the beginning of aggressive displacement candles. Scaling out in thirds -- first target, extended target, runner -- is a practical approach.

Propulsion Blocks on Multiple Timeframes

One of the most powerful applications of propulsion blocks is transposing them across timeframes. A propulsion block that forms on the daily chart can be refined on the hourly chart for entries, and further refined on the 15-minute or 5-minute for precision.

The Daily-to-Hourly Workflow

Here is how this looks in practice:

1. Daily chart: Identify a down-close candle that has dug into a previous down-close candle (bullish order block). This is your daily propulsion block. Note the range and mean threshold.

2. Hourly chart: Transpose the propulsion block range onto the hourly chart. Watch how hourly candle bodies behave around the mean threshold. If bodies are respecting the upper half of the propulsion block (for a bullish setup), the institutional narrative is intact.

3. 15-minute or 5-minute chart: Once you see hourly confirmation, drop to a lower timeframe and look for a change in state of delivery or a market structure shift within the propulsion block zone. This gives you the precision entry.

This multi-timeframe approach is what separates mechanical propulsion block trading from truly institutional-grade execution. The daily level tells you where to look. The hourly tells you whether the level is being respected. The lower timeframe tells you when to pull the trigger.

Tools That Help

Manually tracking propulsion blocks across multiple timeframes is tedious. The Institutional Price Blocks indicator automates order block detection on any timeframe and highlights the zones where price is most likely to react. Pairing it with the Smarter Money Suite, which tracks break of structure and market structure shifts, gives you the contextual framework to identify propulsion blocks without manually marking every candle.

Propulsion Blocks vs. Other PD Arrays

Understanding where propulsion blocks fit relative to other ICT concepts will help you prioritize when multiple levels overlap.

Propulsion Block vs. Standard Order Block

Feature	Standard Order Block	Propulsion Block
Definition	Last opposing candle before BoS	Candle that digs into an existing OB
Validation	One layer (the BoS itself)	Two layers (original OB + retest candle)
Invalidation	Subjective -- varies by trader	Precise -- mean threshold close
Probability	Good	Higher
Frequency	Common	Less common

Propulsion blocks are a subset of order blocks. Every propulsion block contains a standard order block, but not every order block contains a propulsion block.

Propulsion Block vs. Breaker Block

Breaker blocks form when an order block fails and price trades through it. The failed OB then becomes a level that price uses as support or resistance on the other side. Breaker blocks and order blocks serve different structural purposes.

Propulsion blocks do not involve failure. They involve confirmation. The original order block holds, the propulsion candle confirms it, and price continues in the expected direction. If the original order block were to fail, you would be looking at a breaker -- not a propulsion block.

Propulsion Block vs. Mitigation Block

Mitigation blocks and propulsion blocks can look similar on a chart, but their purpose is different. A mitigation block is where institutions return to unwind previous positions (closing old trades). A propulsion block is where institutions re-engage with the original thesis (adding new trades in the same direction).

The key difference is context: mitigation blocks often appear at the beginning of a reversal, while propulsion blocks appear during trend continuation.

Real-World Example: Bullish Propulsion Block on NQ Daily

To ground this concept in practical terms, consider a scenario that appears frequently on the NASDAQ daily chart.

Price is trending higher from a weekly perspective, reaching for a weekly mitigation block overhead. On the daily chart, you see a down-close candle that marks a bullish order block -- the last bearish candle before a significant up-move. Price breaks structure to the upside, confirming the OB.

Then the retracement begins. Price pulls back, and a new down-close candle forms that digs into the body of the original bullish order block. This is your daily propulsion block. You mark its range and draw the mean threshold at 50%.

Over the next several sessions, price tests the propulsion block zone. Watch the candle bodies carefully. You will see wicks probe below the propulsion block -- this is normal and permissible. What matters is where the bodies close. If every body closes above the mean threshold, the propulsion block is intact. The institutional narrative has not changed.

When price finally lifts off the propulsion block, the move tends to be aggressive. Displacement candles appear. Fair value gaps form above. Price begins reaching for the higher timeframe target -- in this case, the weekly mitigation block.

The key lesson: the daily propulsion block gave you the precise level where institutions were defending their position. The mean threshold gave you the line in the sand. The candle bodies told you the story was still valid even as wicks created temporary drawdowns that would have shaken out less disciplined traders.

This is the same workflow whether you are trading NQ, ES, gold, or forex pairs. The structure does not change across markets because the underlying algorithm references the same principles.

Common Mistakes When Trading Propulsion Blocks

Forcing the Identification

Not every order block will produce a propulsion block. The retracement candle must physically trade into the order block zone. If it only approaches the zone without entering it, you do not have a propulsion block -- you have a standard retest of the area near the OB. Do not stretch the definition to make the pattern fit.

Ignoring the Mean Threshold

The mean threshold is not optional. If candle bodies are closing beyond the 50% level in the wrong direction, the propulsion block is compromised. Taking the trade anyway because "it looks close enough" is how you turn a high-probability concept into a coin flip.

Trading Against Higher Timeframe Flow

A propulsion block on the 5-minute chart means nothing if the 1-hour chart is showing bearish institutional order flow. Always confirm that your propulsion block aligns with the higher timeframe directional bias. The concept works because it captures institutional re-engagement with a level -- but institutions only re-engage with levels that align with their broader agenda.

Confusing Propulsion Blocks With Imbalances

Propulsion blocks and fair value gaps frequently co-exist in the same area of price action, but they are different tools. A fair value gap is a three-candle pattern measuring imbalance. A propulsion block is a single candle measuring institutional re-engagement with an order block. They can overlap, and when they do, the confluence makes the level even stronger -- but do not treat them as interchangeable concepts.

Putting It Together: A Complete Propulsion Block Trade Plan

Here is a concise checklist you can use when trading propulsion blocks in live markets:

Pre-Trade (Preparation):

1. Determine your higher timeframe bias using dealing range analysis or market structure
2. Identify the origin order block on your analysis timeframe
3. Confirm a break of structure away from the order block
4. Watch for the retracement candle that digs into the OB -- mark it as the propulsion block
5. Draw the mean threshold at 50% of the propulsion block candle

At the Level (Execution):

6. Wait for price to return to the propulsion block
7. Watch candle bodies: are they respecting the mean threshold?
8. Enter at the propulsion block edge or mean threshold
9. Place stop loss beyond the propulsion block candle
10. Set first target at the nearest liquidity pool or inefficiency

Post-Entry (Management):

11. If bodies start closing beyond the mean threshold, consider reducing or exiting
12. Scale out at pre-defined targets
13. Trail remaining position using lower timeframe structure

Final Thoughts

The propulsion block is not a new concept bolted on top of order blocks. It is a refinement that addresses the main weakness of standard OB trading: inconsistent reaction quality. By requiring an additional layer of institutional confirmation -- the candle that physically re-engages with the order block before price propels away -- you filter out weaker setups and focus only on levels where institutions have shown their hand twice.

The mean threshold rule gives you the invalidation clarity that standard order blocks lack. The multi-timeframe workflow gives you the precision to trade these levels with confidence. And the structural logic behind why propulsion blocks work -- double-validated institutional interest -- gives you the conviction to hold through the noise.

If you want to automate the detection of order blocks that could form the foundation of propulsion block analysis, the Institutional Price Blocks indicator marks these zones in real time. Combine it with the MTF Confluence Key Levels to see where multiple timeframes agree on a single level, and you have a systematic framework for identifying the highest-probability propulsion block setups.

Start simple. Identify the origin order block. Watch for the propulsion candle. Mark the mean threshold. Wait for the retest. Let price propel.