Key takeaways
- A propulsion block is a candle that trades into an existing order block and then becomes the launch point for the next leg.
- It sits above a bullish order block (or below a bearish one), so a healthy retracement is expected to be shallower.
- Traders mark its range and the mean threshold of its body, and often expect price to hold that 50% line.
- Because the zone is closer to price, stops can be tighter, but the setup also fails more easily.
- Definitions vary between educators; it is a refinement of the order block, not a separate system.
Contents
An order block marks where a strong move began. When price comes back to it and launches again, the candle that made that second launch can become a reference of its own. ICT traders call it a propulsion block. It is a refinement of the order block idea: a closer, tighter zone that traders watch when they expect the trend to keep going without a deep pullback.
This lesson explains the definition, how to mark it, and the trade-offs of using a tighter zone.
What it is
A bullish propulsion block is a candle, usually a down-close candle, that:
- trades down into an existing bullish order block, often touching or nearing its mean threshold, and
- is followed by a strong move higher, so the candle itself becomes the base of the next leg.
A bearish propulsion block is the mirror image: an up-close candle that trades into an existing bearish order block and is followed by a strong move lower.
The reasoning traders give is that the original order block was defended, and the candle that did the defending now marks where buying (or selling) re-entered. If the move is strong, the next pullback should not need to return all the way to the original block. It should find support at the propulsion block instead, which sits higher (for a bullish setup) and closer to price.
Traders mark the propulsion block's full range and the mean threshold of its body, the 50% line explained in consequent encroachment and mean threshold. A common expectation is that price holds at or above that line on the retest.
Educators describe the propulsion block in slightly different ways. Some require the candle to be an order block in its own right; others only require it to have traded into the earlier block. Treat the details as rules you define and test.
| Feature | Order block | Propulsion block |
|---|---|---|
| Position | Origin of the first displacement | Inside or on top of the order block, at the start of the next leg |
| Expected retracement | Deeper | Shallower |
| Stop distance | Wider | Tighter |
| Main risk | Block fails, becomes a breaker | Deeper pullback reaches the original block |
How to identify it
- Start with a valid order block. It should have produced displacement that broke structure.
- Wait for the first retracement. Watch price return toward the block.
- Find the candle that touches it. In a bullish setup, look for the down-close candle that trades into the block's range.
- Confirm the relaunch. The next candles should move strongly away, ideally making a new high.
- Mark the candle. Draw its high-to-low range and the mean threshold of its body.
- Plan for the next retracement. That is when the propulsion block is traded, not at the moment it forms.
Worked example: a bullish propulsion block on EUR/USD
All prices are illustrative. EUR/USD is quoted to four decimals; one pip is 0.0001.
Step 1, the order block. On the 1-hour chart, the last down-close candle before a rally opens at 1.0815, has a high of 1.0818 and a low of 1.0798, and closes at 1.0802. Price then rallies to 1.0860, breaking a swing high at 1.0848. The order block's mean threshold is (1.0815 + 1.0802) ÷ 2 = 1.08085.
Step 2, the propulsion block. Price pulls back. A down-close candle opens at 1.0830, has a high of 1.0833, dips to 1.0811 (inside the order block, which tops out at 1.0818), and closes at 1.0820. The next candles rally to a new high at 1.0884. That down-close candle is the propulsion block.
| Level | Price |
|---|---|
| New high | 1.0884 |
| Propulsion block high | 1.0833 |
| Propulsion block open (body top) | 1.0830 |
| Propulsion block mean threshold | 1.0825 |
| Propulsion block close (body bottom) | 1.0820 |
| Propulsion block low | 1.0811 |
| Order block high | 1.0818 |
| Order block mean threshold | 1.08085 |
| Order block low | 1.0798 |
Propulsion block mean threshold: (1.0830 + 1.0820) ÷ 2 = 1.0825.
Step 3, the trade. Price pulls back again. A trader expecting a shallow retracement places a buy limit at the top of the propulsion block body, 1.0830, with a stop-loss at 1.0808, three pips below the propulsion block low. Risk is 22 pips.
- Target 1: the new high at 1.0884, 54 pips away, about 2.5 times the risk.
- Target 2: buy-side liquidity at 1.0910, 80 pips away, about 3.6 times the risk.
With a $10,000 account risking 1% ($100), and about $10 per pip per standard lot, size = $100 ÷ (22 × $10) ≈ 0.45 lots.
A more aggressive version puts the stop at 1.0821, just below the propulsion block's mean threshold. Risk drops to 9 pips, but any pullback that tests the body more deeply will stop the trade out. That is the core trade-off of this tool.
Invalidation: a 1-hour body close below the propulsion block low (1.0811) suggests the shallow-retracement idea has failed. Price may then return to the original order block, which is a separate setup to judge on its own.
How traders use it
- Trend continuation. Propulsion blocks are mainly continuation tools, used after the order block has already held once.
- Reading strength. Price holding at a propulsion block, rather than going back to the order block, suggests strong institutional order flow in that direction.
- Tighter risk. The closer zone allows a smaller stop, which can improve the risk-to-reward ratio, at the cost of more stop-outs.
- Layered planning. Some traders split entries: part at the propulsion block, part at the original order block's mean threshold.
Use the Risk Reward Calculator to compare both entries before choosing. A tighter stop is not safer if it is hit more often.
Common mistakes
- No order block underneath. Without an earlier valid block, a candle is just a candle.
- Trading it too early. The propulsion block is traded on the next pullback, not when it forms.
- Stops too tight. Placing the stop inside the body leaves no room for normal noise.
- Ignoring failure. If price closes through the propulsion block, it may become a breaker or mitigation block instead of support.
- Using it against the trend. It is a continuation tool and is weak against higher-timeframe bias.
Summary
A propulsion block is a candle that trades into an existing order block and then launches the next leg. Because it sits closer to price, traders expect a shallower retracement to hold at it, often at the mean threshold of its body. It allows tighter stops but fails more often when the market pulls back deeply. Treat it as a refinement of the order block, define your rules in advance and size every trade so a loss is affordable.
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Practice worksheet
Practice worksheet
4 exercises to try on paper. Print it, save it as a PDF from the print dialog, or download a plain-text copy.
- Find five bullish order blocks on a 1-hour EUR/USD chart. For each, check whether a later candle traded into it and became the base of the next leg.
- Mark the body mean threshold of each propulsion block and record whether the next retracement held above it.
- Compare the stop distance of a propulsion block entry with an entry at the original order block for the same move.
- Note which propulsion blocks failed and whether price then reached the original order block's mean threshold.
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