The ICT Propulsion Block is a key ICT trading concept that helps identify precise price movements.
This concept focuses on candles interacting with order blocks and generating strong price movements.
What is an ICT Propulsion Block?
In general, the term "Propulsion" means "to propel forward." In trading, this concept refers to a single candle that pushes the price away from itself.
The ICT Propulsion Block (PB) is a candle that trades within an order block and then drives the price away from it.
A sharp and sudden reaction occurs when the price returns to the Propulsion Candle, allowing traders to capitalize on it.
Bullish ICT Propulsion Block
A Bullish ICT Propulsion Block (PB+) is the last bearish candle that enters a bullish order block and then pushes the price upward.
When the price returns, the Propulsion Candle acts as support and rises again.
How to Trade a Bullish ICT Propulsion Block?
Follow these steps to trade an ICT Bullish Propulsion Block:
- Identify the Mean Threshold Level (MT)
- Use Fibonacci to measure from the high to the low of the Propulsion Candle and find the 50% retracement level
- Assess the Block's Quality
- The price should not move below the block's Mean Threshold (MT)
- Wait for the Price to Return
- Allow the price to return to the Propulsion Candle and retest it.
- Enter a Buy Trade
- Once the price nears the Mean Threshold, enter a buy trade
- Stop-Loss: Place a few pips below the low of the Propulsion Candle
- Take-Profit: Look for the next liquidity level on the buy side or use Fibonacci levels to determine take-profit targets
Bearish ICT Propulsion Block
A Bearish ICT Propulsion Block (PB-) is the last bullish candle that enters a bearish order block and then pushes the price downward.
When the price returns, the Propulsion Candle acts as resistance, and the price declines again.
How to Trade a Bearish ICT Propulsion Block?
Follow these steps to trade an ICT Bearish Propulsion Block:
- Identify the Mean Threshold Level (MT)
- Use Fibonacci to measure from the high to the low of the Propulsion Candle and find the 50% retracement level
- Assess the Block's Quality
- The price should not exceed the block's Mean Threshold (MT)
- Wait for the Price to Return
- Allow the price to return to the Propulsion Candle and retest it
- Enter a Sell Trade
- Once the price nears the Mean Threshold, enter a sell trade
- Stop-Loss: Place a few pips above the high of the Propulsion Candle
- Take-Profit: Look for the next liquidity level on the sell side or use Fibonacci levels to determine take-profit targets
You can also use the ICT Propulsion Block Indicator designed by the TFLab team to identify propulsion blocks more effectively:
- Download ICT Propulsion Block Indicator for MetaTrader 4
- Download ICT Propulsion Block Indicator for MetaTrader 5
- Download ICT Propulsion Block Indicator for TradingView
Conclusion
The ICT Propulsion Block helps traders identify precise entry points. This concept is helpful for scalping, day trading, and swing trading.
Bullish PBs form with the last bearish candle inside a bullish order block. Bearish PBs form with the previous bullish candle inside a bearish order block.
Use Fibonacci tools to locate the Mean Threshold (MT) and wait for the price to return.
