When traders miss the initial entry point and aim to enter in the middle of a trend, the ICT approach recommends re-entry only if confirmation is received.
In such situations, using Order Blocks (OB) and Fair Value Gaps (FVG) as retracement zones, provides valid entry opportunities.
How to Trade Using Order Block in Trend Following with ICT
To enter the middle of a trend using the ICT style, follow the steps below:
#1 Higher Time Frame Price Analysis
When a low price is collected using Smart Money Tactics (SMT) and candlesticks form Order Blocks in the same region, the next step is to shift to a lower time frame to identify a bullish structure.
#2 Switching to a Lower Time Frame to Find a Higher Low
At this stage, you should look for the formation of a Higher Low (HL) or a reaction to an FVG. There may be several FVGs in this path, and it’s unnecessary to predict which one is valid in advance.
Instead, we wait for the price to react to one of them, form a low, and then confirm the entry scenario by forming a Single Order Block with a shadowed candle.
#3 Confirmation for Trade Entry
By Trading with Order Block in Trend Following with ICT, there are two main confirmations depending on the timing and entry zone:
- At the beginning of a trend, confirmation occurs when there's a Change in the State of Delivery (CISD), a pullback to the Fair Value Gap (FVG) on a lower time frame, and a candle closes above the open of the initial bearish candles.
- Midway through the trend, once the top is confirmed and the price continues upward, entry is triggered after a candle closes above the open of the candle that started the downward move during the correction and Fair Value Gap (FVG) return.
Advantages and Limitations of Trading with Order Block in Trend Following with ICT
Using Order Blocks in the ICT style is a high-precision tool for entering trades in the direction of the trend. This approach is more suitable for experienced traders who apply multi-layered confirmation. Below are the pros and cons:
Limitations | Advantages |
Requires precise synchronization across time frames to confirm structure | Precise entry during trend correction using Order Block (OB) and Fair Value Gap (FVG) |
A misidentified OB can quickly trigger stop loss | Small stop loss placed behind OB or FVG with a favorable risk-reward ratio |
High mastery of advanced ICT and price behavior required | Full alignment with SMT, CISD, and Break of Structure (BOS) |
Misleading in sideways or low-liquidity markets | Effective in lower time frames (M1 to M15) with step-by-step confirmation |
Potential misanalysis of liquidity structure across different time frames | Utilizes liquidity draw zones for powerful entries |
Common Mistakes of Trade Using Order Block in Trend Following with ICT
In this mid-trend entry strategy, traders often make errors that result in failed entries, early stop-outs, or missed real opportunities. Common mistakes include:
- Misidentifying Single Order Blocks for confirmation;
- Focusing solely on OB while ignoring FVG;
- Entering without structural confirmation;
- Ignoring the higher time frame context;
- Overlooking SMT divergence;
- Setting a stop loss without technical reasoning.
Risk Management Parameters for Trading with Order Block in Trend Following
To define Stop Loss (SL) and Take Profit (TP) levels in this ICT strategy, the following criteria should be considered:
- Stop Loss: Positioned behind the Order Block (OB) or the low formed in reaction to the Fair Value Gap (FVG);
- Take Profit: Set at the previous structural high or based on a 1:2 risk-to-reward ratio.
Key Notes on Trading with Order Block in Trend Following
Accurate execution of Trade Using Order Block in Trend Following with ICT depends on several critical principles:
- Mid-trend re-entry is only valid upon receiving structural confirmation from the market;
- The combined use of Order Block (OB) and Fair Value Gap (FVG) reduces trade risk;
- Alignment between higher and lower time frames filters false signals and validates price structure across levels;
- Tools like SMT and CISD are essential in identifying the beginning of new waves;
Note: All scenarios mentioned for bullish trend entries apply in reverse for bearish setups.
Conclusion
Using structural concepts like Order Block and Fair Value Gap during a trend allows re-entry even after the initial price move, but only if clear confirmations are received.
In the ICT framework, such entries rely on price action in lower time frames, confirmed by CISD, long-wick candles, and validated high/low structures.
Multi-timeframe analysis, correct placement of stop loss, take profit, and deep understanding of price behavior around liquidity areas make this method one of the most advanced continuation entry strategies in trading.
