ICT Propulsion Block (PB): What It Is and How It Works

What Is a Propulsion Block

To understand a propulsion block, you first need the base: an order block (OB). This block is a zone on the chart where large orders entered, causing a strong move, often after consolidation.

A ICT Propulsion Block (PB) is formed when price revisits such an order block, a single candle closes inside that zone, and then price reacts impulsively, giving a strong directional move away from that zone.

In summary, a propulsion block is like the market saying “we revisited the zone, we accepted it now we push.” That push often leads to momentum, and for traders, that means an opportunity.

What “Propulsion” Means in This Context

But in the end, what does the word propulsion mean? The word “propulsion” literally means “to push forward.”

It refers to that candle pushing price away from the block, a decisive move that may indicate institutional activity or liquidity re-activation.

Because of that push, propulsion blocks have a different role than classic order blocks: they don’t just mark areas of interest , they signal activated zones, often with stronger conviction.

Types of Propulsion Blocks

Like order blocks, propulsion blocks come in two main types, depending on the direction the market takes after the block forms. Here are they:

• Bullish Propulsion Block: Occurs when a bearish candle closes inside a bullish order block, and price then goes fast upward. That propulsion candle tends to act as support on future retracements.
• Bearish Propulsion Block: Happens when a bullish candle closes inside a bearish order block, followed by a strong downward move. On retracement, that candle can serve as resistance.

How to Identify and Trade a Propulsion Block

If you want to spot and use a propulsion block trading, here’s a practical workflow many experienced traders follow:

Identification Steps

1. Mark a valid order block (OB): Look for consolidation or a corrective move, followed by a strong directional candle.
2. Wait for price to revisit the OB: Ideally, the price returns to that zone, liquidity zones often get tested more than once.
3. Find a candle closing inside the OB: That candle becomes a candidate Propulsion Candle.
4. Observe for a strong impulsive move away: The reaction should be sharp, with decent volume or momentum, that validates the block as a PB.
5. Mark the Mean Threshold (≈ 50% of candle body): Many traders apply Fibonacci retracement to candle’s high-low to define the midpoint. A valid PB generally shouldn’t let price retrace past that midpoint if it remains valid.

Trading Setup Example (Bullish PB)

Once a bullish propulsion block forms:

• Wait for a retracement toward the body of the propulsion candle, ideally above the 50 % mean threshold.
• Enter a long trade when price reaches that zone (and possibly shows confluence signals, like liquidity zone, market structure shift, etc.).
• Place a stop-loss a few pips below the low of the propulsion candle.
• Target profit zones could be the next liquidity area, previous high, or use Fibonacci extensions / order blocks above.

For bearish PB, you should invert logic accordingly: wait for retracement toward the propulsion candle zone, enter short near the body (below threshold), stop-loss above high, target next demand/liquidity zones.

Role of Liquidity in the Formation of the ICT Propulsion Block

Liquidity is one of the main drivers behind the formation of an ICT Propulsion Block because the block only forms when price interacts with an order block that contains enough resting orders to generate a strong reaction.

When a price returns to an order block, it often sweeps nearby highs or lows, collects stop-losses, or absorbs liquidity within that zone.

This liquidity interaction is what allows institutions to execute large positions, which then produces the impulsive move that defines the propulsion candle.

If liquidity is present and gets absorbed correctly, the block reacts with strength and the propulsion block becomes meaningful.

When liquidity is weak or the sweep doesn’t occur, the reaction tends to be shallow or inconsistent, increasing the chance of failure. This is why ICT and other sources emphasize watching how liquidity behaves before and during the retest.

Risks and Common Mistakes using Propulsion Blocks

Using propulsion blocks isn’t foolproof. Here are risks and common errors that must be avoided:

• False signals: Not every candle inside an OB followed by a move is a valid PB. If volume is weak, or momentum is poor, the setup is less reliable.
• Ignoring broader context: If the market structure / liquidity doesn’t align, even a valid PB may fail. You need to always check macro-structure.
• Skipping retest: Entering immediately after the propulsion candle without waiting for retracement often leads to reversals or fake-outs.
• Poor risk management: Without a clear stop-loss order and defined target, reward-to-risk ratio suffers, since one of the main value-propositions of PB setups is a tight stop-loss.
• Using the wrong timeframe or ignoring volume/liquidity context: On low-volume sessions or choppy markets, PBs can form but lack strength. Always confirm with confluence (volume, market structure, liquidity zones).

How the Mean Threshold Validates a Propulsion Block

The mean threshold, basically the 50% mark of the propulsion candle, is one of the simplest ways to confirm whether a propulsion block is actually valid.

Keep in mind that if the price comes back to the block but stays above (in a bullish PB) or below (in a bearish PB) that midpoint, the level is still respected.

When price breaks through that 50% line, the block usually loses its strength. The mean threshold is where institutions “defend” the zone. If they don’t, the block probably wasn’t meaningful in the first place.

In practice, traders use the mean threshold to avoid weak setups. If a pullback respects the 50% level, the PB usually remains a solid entry zone. If it doesn’t, it's better to skip it. Simple, clear, and effective.

Propulsion Blocks vs Displacement Blocks: Key Differences

Even though both appear in smart money concepts, propulsion blocks and displacement blocks do different jobs. Here’s the compact breakdown:

Propulsion Blocks

• Form when price re-enters a previous order block and reacts strongly.
• Validate or refine an existing zone.
• Depend on mean threshold protection to stay valid.
• Used mainly for precise entries after a retest.

Displacement Blocks

• Form after a strong push or imbalance, no prior OB needed.
• Highlight where aggressive institutional movement started.
• Used to understand direction or find areas for future pullbacks.
• More about context than precision.

In simple words, Propulsion blocks help you enter, displacement blocks help you understand where price is going.

Why Traders use Propulsion Blocks

Here’s what makes propulsion blocks attractive, especially for those following the smart-money / order flow trading / ICT style:

• They offer precision in entries. Instead of entering randomly on order blocks, propulsion blocks act as refined zones with more structure.
• They often represent zones of real institutional order flow or liquidity absorption, not just retail-level supply/demand zones.
• Because the stop-loss and entry are closer (tight), they improve risk-to-reward ratio, which is critical for consistent trading performance.
• Versatility: PBs can be used across multiple timeframes, from scalping setups (short timeframes) to swing trading (higher timeframes) depending on trader preference.

Conclusion

If you use a trading style aligned with order flow, liquidity, or smart-money concepts, the propulsion blocks are a powerful addition to your toolkit. They add structure, clarity, and precision to your entries.

But like any tool, they work best when used with discipline, context and risk management. Ignore broader market bias or skip confirmations, and the “high-probability” tag quickly vanishes.