Ultimate ICT Order Block Strategy (Full Course)

Introduction

This tutorial is designed to provide a comprehensive overview of the ICT Order Block Strategy as outlined in the video by Mulham Trading. The strategy is based on five years of trading experience, focusing on understanding order blocks, their types, and how to effectively manage trades using this approach. Whether you're a beginner or an advanced trader, this guide will help you grasp the essential concepts and practical applications of the ICT Order Block Strategy.

Step 1: Understand What an Order Block Is

• An order block is a specific price range where significant buying or selling occurred, indicating strong market sentiment.
• Identifying order blocks helps traders anticipate potential price reversals or continuations.
• Look for areas on the chart where price consolidated before a sharp move, as these often represent order blocks.

Step 2: Learn the Continuation vs Rejection Rule

• Continuation Rule: A price movement that continues in the same direction following an order block.
• Rejection Rule: A price movement that reverses after encountering an order block.
• Use these rules to determine how to enter trades when price approaches an order block.

Step 3: Identify High Probability Order Blocks

• Focus on order blocks that have:
  • Significant volume of trades.
  • Clear price action leading into the block.
  • Confluence with other technical indicators (e.g., moving averages, trend lines).
• These high probability order blocks provide better trading opportunities.

Step 4: Recognize the Top 2 Order Block Types

1. Bullish Order Blocks: Formed before a price increase, indicating strong buying interest.
2. Bearish Order Blocks: Formed before a price decrease, indicating strong selling interest.

• Recognizing these types helps in anticipating market movements and making informed trading decisions.

Step 5: Confirm Order Block Entries

• Use confirmation signals to validate your entry into a trade based on order blocks:
  • Look for candlestick patterns (e.g., pin bars, engulfing candles) at the order block level.
  • Monitor volume spikes that accompany price action.
  • Use additional indicators (e.g., RSI, MACD) to confirm entry points.

Step 6: Manage Your Trades

• Implement effective trade management strategies:
  • Set stop-loss orders just beyond the order block to limit potential losses.
  • Decide on profit targets using previous support and resistance levels.
  • Adjust stop-loss and take-profit levels as the trade progresses to secure gains.

Step 7: Apply the Order Block Strategy Step by Step

1. Identify the market context (trend or range).
2. Locate potential order blocks on the chart.
3. Wait for price to revisit these blocks.
4. Confirm entry signals before executing trades.
5. Manage the trade according to your plan.

Step 8: Review Strategy Examples

• Analyze past trades where the ICT Order Block Strategy was successfully implemented.
• Consider both winning and losing trades to understand the strategy's strengths and weaknesses.
• Learn from example scenarios to refine your trading approach.

Conclusion

The ICT Order Block Strategy is a powerful tool for traders looking to enhance their market analysis and decision-making skills. By understanding order blocks, applying continuation and rejection rules, and managing trades effectively, you can improve your trading outcomes. As you practice this strategy, consider backtesting it on historical data to build confidence and refine your approach. Happy trading!