Learn Price delivery Order Block (OB) & Mean Threshold
Order Block (OB) & Mean Threshold
The last opposite-direction candle before a displacement move — a footprint of institutional orders.
A bullish order block is the last down-close candle (or cluster) immediately before an energetic move higher; a bearish OB is the last up-close candle before a drop. ICT reads it as the place where institutions built their positions before revealing intent.
A valid OB needs proof of intent: the move away should body-close beyond the candle, break structure, leave an FVG, or begin with a liquidity sweep of a prior swing — the highest grade combines several.
The zone is drawn over the candle’s range (or just its body in the strict version), and its 50% level — the Mean Threshold — is the most sensitive entry price inside it.
How to trade it
- Wait for price to return to the OB (mitigation) and look for entries at the edge or the Mean Threshold, stop beyond the far side of the zone.
- Only trust OBs whose displacement leg broke structure or took liquidity — a random down candle in a chop is not an order block.
- Keep only fresh, unmitigated OBs inside the current dealing range; stale zones lose their edge.
Pitfalls
- Marking every opposite-colored candle as an OB — without displacement and a structure break it is noise.
- Ignoring invalidation: a body close through the far side of the zone kills it.
- Entering at the first touch with no plan for the Mean Threshold — price often digs to 50% before reacting.
See Order Block (OB) & Mean Threshold detected live.
The workstation marks it on the chart the moment it prints.
More in Price delivery