A Reclaimed Order Block in the ICT trading style initially functions as an Order Block but guides the subsequent price movement after a price break and returns to it.
Market Makers accumulate liquidity in this area, and the price reacts to the return, setting a new direction.
What is a Reclaimed Order Block?
Reclaimed Order Blocks are key market zones where professional and
Institutional traders accumulate buy or sell orders.
These areas often experience minor price movements (Displacements) and regain importance as they act as support or resistance, driving prices upward or downward.
Reclaimed Order Block in the Market Maker Buy Model
In the Market Maker Buy Model, Reclaimed Order Blocks are positioned on the sell side of the market. Institutional traders accumulate buy orders in these areas, initiating an upward price movement.
These blocks represent the starting point of a bullish price trend.
Reclaimed Order Block in the Market Maker Sell Model
In the Market maker-sell model, Reclaimed Order Blocks are positioned on the buy side of the market. Institutional traders gather sell orders in these areas, initiating a downward price movement.
Bullish Reclaimed Order Block
A Bullish Reclaimed Order Block is a candlestick previously used for price accumulation. In this case, a minor price retracement reflects a small market displacement.
These blocks are observed in bullish markets. Before the upward movement begins, the price often dips slightly to collect liquidity and reach a key higher time frame level.
At this stage, Smart Money (large institutional traders like banks) starts buying in these zones. This gradual buying occurs due to the substantial volume of their orders, which cannot be executed simultaneously.
These buy positions are accumulated on the sell side of the market using strategic methods.
How to Trade with Bullish Reclaimed Order Blocks
On the 5-minute Bitcoin chart, when the last bearish candle closes before a small move, the price moves up on the sell side of the market.
These blocks act as a support level, helping the price to continue its bullish trend.
Bearish Reclaimed Order Block
A Bearish Reclaimed Order Block is a candlestick previously used for price distribution. A short-term price increase indicates a small market displacement.
These blocks are seen in the Market Maker Sell Model. Before the downward price movement begins, the price usually rises slightly to reach a higher time frame key level—the buy side of the curve.
Large institutions (e.g., banks) initiate sell positions at this stage. Due to the size of their orders, this process creates a temporary price increase, causing a minor displacement in the market.
How to Trade Bearish Reclaimed Order Blocks
A Bearish Reclaimed Order Block is the last bullish candlestick that closes before a minor displacement, followed by a price decline on the buy side of the curve.
Smart Money uses these blocks on the sell side of the curve to increase their sell positions. As shown below, old blocks act as resistance, driving the price downward.
Conclusion
Reclaimed Order Blocks allow traders to identify key market zones and predict price behavior. These blocks often act as support or resistance, determining the next price direction.
For optimal execution, ICT-based time frame alignment, liquidity confirmations, and institutional-grade risk manegment are crucial in validating trade setups.
