ICT Bullish Order Block — How to Identify & Trade the Bullish OB Setup + Free PDF

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A bullish order block is the zone on a price chart where a large number of buy orders are executed by institutional traders, and price shows a sudden, strong move away from that area. It is the last bearish candle before a bullish impulse — and the standard ICT entry zone for trend-continuation longs.

This guide is the bullish-only sub-pillar of the ICT Order Block framework. For the full framework — both sides — see the ICT Order Block guide. For the mirror setup, see the ICT Bearish Order Block.

In this guide I walk you through the bullish order block — the meaning, the four-condition identification, the entry sequence, the stop and target placement, the common mistakes and the free PDF download.

What is an ICT Bullish Order Block?

The ICT bullish order block is the zone on a price chart where a large number of buy orders are executed by institutional traders, and the market shows a sudden, strong move from that area.

Retail traders follow institutional footprints, so they wait for these order-block zones to buy in the market and profit alongside the big institutions like banks.

A bullish order block is a bearish candle followed by a strong bullish engulfing candle.

What is an Order Block in Trading? (Quick Definition)

An order block in trading is a specific candlestick (or pair of candlesticks) that marks the area where institutional orders were placed before a strong directional move. In ICT methodology there are two types — bullish (the last down-close candle before an up-move) and bearish (the last up-close candle before a down-move). This guide focuses on the bullish variant.

How to Identify a Bullish Order Block

A bullish order block is the last bearish candle before the bullish impulse (strong sudden) move. It typically consists of two candles — the first candlestick is bearish and the second candlestick is bullish.

To identify a valid bullish order block you need to check the following four conditions.

(I) The second candle (bullish) grabs the low of the previous bearish candle. Price should go below the low of the previous bearish candle.

(II) The second candle (bullish) closes above the high of the previous bearish candle.

(III) Imbalance on the lower timeframe inside the order-block zone.

(IV) Structure shift on the lower timeframe.

To sum it up: the second candle should completely engulf the first candle — body-to-body and wick-to-wick.

How to Trade a Bullish Order Block

To trade a bullish order block, first identify the market order flow or trend.

Bullish order blocks are mostly reliable in a bullish trend. In a bearish trend they may offer only a small retracement move, so it is preferable to trade bullish order blocks in a bullish trend.

After identifying the trend, spot a valid bullish order block as explained above.

Once a bullish order block is identified, wait for price to retest the order block.

When price approaches the bullish order block you can execute a buy trade at the 50% retracement of the order block.

For extra confirmation you can look for an ICT Market Structure Shift on a lower timeframe like 15-minute or 5-minute.

In the picture above you can see the XAG/USD daily chart making higher highs and higher lows, indicating a bullish trend.

After spotting a valid bullish order block and waiting for price to test the order block, a buy trade was executed after the confirmation on the lower timeframe — targeting the old high as draw-on-liquidity.

You can see it worked perfectly, hitting the target and delivering 1:3 reward.

Step-by-Step Bullish Order Block Trade Flow

This is the exact sequence I run when trading a bullish order block.

1. Confirm bullish trend. Higher highs and higher lows on the daily and H4. The bullish OB works best in a bullish higher-timeframe context.
2. Spot the candle pair. A bearish candle followed by a strong bullish candle that fully engulfs it body-to-body and wick-to-wick.
3. Verify the four conditions. The bullish candle must (a) grab the low of the bearish candle, (b) close above its high, (c) leave an imbalance on the LTF, and (d) print a structure shift on the LTF.
4. Mark the order block zone. The body of the bearish candle defines the zone.
5. Mark the next draw on liquidity. Old high or relative equal high above the OB — this is the profit target.
6. Wait for the retest. Price must come back to the bullish order block.
7. Drop to the lower timeframe. 15-minute or 5-minute for the entry trigger.
8. Wait for the LTF MSS. A clean Market Structure Shift to the upside confirms intent at the OB retest.
9. Enter at the 50% mark. Take the buy at the 50% retracement of the bullish order block.
10. Set the stop. 10 to 20 pips below the low of the order block.
11. Take profit at the next draw on liquidity. The level identified in step 5.

Stop Loss and Take Profit

While executing a trade using a bullish order block you can set your stop loss 10 to 20 pips below the low of the order block.

For take profit you can target the next draw-on-liquidity level.

A typical 1:2 to 1:3 reward-to-risk ratio is achievable on most bullish OB setups when the higher-timeframe trend is aligned.

Best Markets for Trading Bullish Order Blocks

The bullish order block works on every market that the ICT methodology is applied to.

• NQ (NASDAQ futures) and ES (S&P 500 futures) — the bullish OB on US indices delivers some of the cleanest engulfing setups, especially during the New York AM session.
• GBP/USD and EUR/USD — bullish OB setups print frequently around the London open after a swing-low sweep.
• XAU/USD (Gold) and XAG/USD (Silver) — metals deliver large bullish OB engulfing patterns around US 08:30 ET news releases.

For traders in the United States who follow the CFTC FIFO and no-hedge rules, NQ and ES are the most natural fit for the bullish order block. The 09:50 NY-AM macro window often delivers the LTF MSS and the 50% retest of the bullish OB inside the same 20-minute window — making the setup especially time-efficient for US-based readers.

Is the ICT Bullish Order Block Reliable?

Yes — a bullish order block is reliable for trading, mostly in a bullish trend as it offers a continuation of the bullish move.

In a bearish trend, the bullish order block may act as liquidity and price may go lower, breaking the bullish order block. So always reference the higher-timeframe bias before taking a bullish OB trade.

Can I Trade Using a Bullish Order Block Alone?

Yes — you can trade solely on the basis of a bullish order block, provided the OB sits in the ICT Optimal Trade Entry zone (0.62 to 0.79 of the prior swing) inside a bullish trend, and confirmation comes from an ICT Market Structure Shift on the lower timeframe at the OB.

Common Mistakes Trading the Bullish Order Block

These are the recurring mistakes I see when traders first start trading bullish OB setups.

1. Trading bullish OB in a bearish trend. The bullish OB is a continuation pattern. Against the higher-timeframe bias, it usually fails to hold and price runs through to the next liquidity level.
2. Skipping the engulfing rule. The bullish candle must engulf the bearish candle body-to-body AND wick-to-wick. Partial engulfing is not a valid OB.
3. No LTF MSS at the retest. The retest alone is not the entry. The lower-timeframe Market Structure Shift is the trigger.
4. Stop too tight. Stops parked at the body low of the OB get hunted on the wick. The 10 to 20 pip buffer below the OB low is non-negotiable.
5. Trading every two-candle engulfing. A bearish candle followed by a bullish engulfing in the middle of a range is rarely a valid OB. The setup requires a strong impulse move away from the OB and a lower-timeframe imbalance left behind.
6. Mistaking continuation for reversal. A bullish OB inside an ongoing downtrend is liquidity for the algorithm — not a reversal signal. Price often takes out the OB low to continue down.

ICT Bullish Order Block PDF Download

You can download below ICT bullish order block in PDF for free. This PDF is sponsored by ICTPDF.COM.

To learn the complete ICT Trading strategy step by step, you can buy the ICT Trading PDF eBook on ICTPDF.COM.

FAQs about the ICT Bullish Order Block

Brief answers to the questions readers ask most often about the bullish order block.

What is a bullish order block?

A bullish order block is the last bearish candle before a strong bullish impulse move. It marks the zone where institutional buy orders were filled and acts as a high-probability buy zone on the retest.

How do I identify a bullish order block?

Look for a bearish candle immediately followed by a bullish candle that (a) grabs the low of the bearish candle, (b) closes above its high, (c) leaves a lower-timeframe imbalance, and (d) prints a lower-timeframe structure shift. The bullish candle must engulf the bearish candle body-to-body and wick-to-wick.

Where do I enter a bullish order block trade?

At the 50% retracement of the bullish order block on the retest, ideally with confirmation from a lower-timeframe Market Structure Shift on the 15-minute or 5-minute chart.

Where is the stop loss on a bullish order block trade?

10 to 20 pips below the low of the bullish order block.

Where is the take profit on a bullish order block trade?

The next draw-on-liquidity in the trend direction — typically a relative equal high or the prior session high.

Is the bullish order block reliable?

Yes — but mostly in a bullish trend. In a bearish trend, a bullish OB often acts as liquidity for the algorithm rather than as a reversal trigger.

Can I trade a bullish order block alone without other confluences?

Yes — provided the OB sits in the OTE zone (0.62 to 0.79 retracement of the prior swing) inside a bullish trend and is confirmed by a lower-timeframe MSS at the retest.

What is the difference between a bullish order block and a bearish order block?

A bullish OB is the last down-close candle before a strong up-move (used as a buy zone). A bearish OB is the last up-close candle before a strong down-move (used as a sell zone). The two are mirror opposites — see the ICT Bearish Order Block guide for the bearish variant.

What is the difference between a bullish order block and a fair value gap?

A bullish order block is a candle (the last down-close before an up-move). A fair value gap is the imbalance between the wicks of three candles. Both can occur inside the same impulse — the OB is the candle, the FVG is the gap left behind.

What timeframe is best for the bullish order block?

The 4-hour and daily produce the highest-conviction OBs. The 15-minute and 5-minute are used for the entry trigger (the LTF MSS) at the retest.

Does the bullish order block work on indices and gold?

Yes — NQ, ES, XAU/USD and XAG/USD all produce textbook bullish OB setups, especially during the New York AM session and around US economic releases.