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High Probability Order Blocks

The document explains the concept of Order Blocks, which are price levels where institutional traders buy or sell to establish positions without significantly impacting prices. It categorizes Order Blocks into bullish and bearish types and outlines criteria for identifying high probability Order Blocks using tools like premium/discount zones, liquidity sweeps, and displacement. Additionally, it emphasizes the importance of combining Fair Value Gaps with Order Blocks to enhance trading setups.

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ANISH P
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209 views9 pages

High Probability Order Blocks

The document explains the concept of Order Blocks, which are price levels where institutional traders buy or sell to establish positions without significantly impacting prices. It categorizes Order Blocks into bullish and bearish types and outlines criteria for identifying high probability Order Blocks using tools like premium/discount zones, liquidity sweeps, and displacement. Additionally, it emphasizes the importance of combining Fair Value Gaps with Order Blocks to enhance trading setups.

Uploaded by

ANISH P
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

FREE PDF

The Secret Behind


High Probability Order Blocks
Stop guessing every OB on your chart. Learn the hidden structure that
makes only a few order blocks truly high probability
1 of 7

What is an Order Block?


OrderBlocks are levels of price where Smart Money,
institutional traders and banks, buy or sell to
establish their positions.
They do this at key levels that allow them to
accumulate or distribute orders without having a big
impact in price.
Orderblocks also serve as institutional reference
points that price is likely to revisit before continuing
its intended direction.

OB
2 of 7

Types of Order Blocks


As you know market has two price moves bullish & bearish.
So on the basis of price moves, Order Blocks is divided into
two types.

Bullish Order Block Bearish Order Block


A bullish orderblock is validated when we get a A bearish orderblock is validated when we get a
close above the Open of the lowest down close close below the Open of the highest down close
candle/(s). candle/(s)

OB
OB
3 of 7

High Probability Order Block


I’m looking for a High Probability Order Block by combining
multiple ICT tools with the Order Block.

1
Premium and Discount

High probability bullish OB


forms inside discount,
bearish OB forms inside
premium.

2 sweep

A sweep of buy-side or sell-side


High Probability liquidity, indicating institutional
activity
Order Block
Displacement

3 A displacement and close below (or


above) the series of candles,
validating the level as an order
block

Combining FVG with OB


4 An FVG aligned with an Order Block
gives us two PD arrays to hold price.
4 of 7

Premium and Discount


A high probability bullish Order Block usually forms inside the discount zone of
price, where smart money looks for long entries. On the other hand, a high
probability bearish Order Block forms inside the premium zone, where
institutions look for short entries.

Premium

Discount
5 of 7

sweep
Sweeping liquidity is key in identifying high probability Order Blocks. By
pushing price beyond recent highs or lows, the market clears out orders,
marking levels where smart money may reverse or continue the trend.
This sweep validates the Order Block and highlights significant areas for
future price action.

sweep
6 of 7

Displacement
Displacement acts as confirmation that the market has aggressively moved away
from a level, often after taking liquidity (like sweeping a previous high or low).
This strong move signals that smart money or the algorithm is actively re-pricing
the market, which increases the likelihood that the order block left behind (the
last up or down candle before the move) will be respected as support or
resistance

Displacement
(Fast move)
7 of 7

Combining FVG with OB


When a Fair Value Gap (FVG) aligns with an Order Block (OB), you
get two powerful PD arrays working together. The OB marks where
smart money entered the market, while the FVG shows price
imbalance that needs to be delivered.
Together, they form a high probability zone where price is more
likely to react, giving you stronger setups and clearer trade
execution.

FVG OB

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