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Lesson 13 of 17 Propulsion Blocks
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ICT / SMC Concepts · Lesson 13

Propulsion Blocks

Learn how a new Order Block can form after price reacts from an earlier Order Block.

  • Intermediate
  • Interactive charts
  • Lesson 13
01

What Is a Propulsion Block?

You already know Order Blocks from Lesson 03. A Propulsion Block builds directly on that.

It is an Order Block that forms after price reacts from a previous Order Block. In the FluxCharts framework, the steps are:

  1. Identify an existing Order Block.
  2. Wait for price to retest it.
  3. The retest should respect the 50% midpoint of that Order Block.
  4. Price should then react strongly away.
  5. A new Order Block forms from that reaction.
  6. That new Order Block is the Propulsion Block.

In this framework, traders interpret the new zone as a continuation area formed from a successful reaction at the original Order Block. That is an interpretation. A chart cannot show whose orders were there.

02

Why the 50% Level Matters

The method uses the midpoint of the original Order Block: (upper price + lower price) / 2.

For a bullish Order Block, price should not move below the 50% threshold during the retest. For a bearish Order Block, price should not move above it.

Bullish OB: retest stays above 50% HIGHLOW UPPER HALFLOWER HALF 50%

A valid retest reaches into the zone but stays above the midpoint.

Bearish OB: retest stays below 50% HIGHLOW UPPER HALFLOWER HALF 50%

A valid retest reaches into the zone but stays below the midpoint.

The Original Order Block and Its 50% Level

Find the block, mark the midpoint, then watch the retest.

Educational example

Constructed teaching data, not real market data. The 50% line is calculated exactly from the zone.
03

Bullish Propulsion Block

Bullish

The source describes the retest candle as reacting sharply upward and closing above the bearish candles that approached the original Order Block. Do not treat that as an exact candle count.

Start with the original Order Block. Now wait for price to return. Mark the midpoint. Price respects the 50% level. Watch the reaction. A new Order Block forms.

Bullish propulsion block
  1. BULLISH ORDER BLOCK
  2. PRICE RETESTS
  3. RETEST STAYS ABOVE 50%
  4. STRONG BULLISH REACTION
  5. NEW BULLISH ORDER BLOCK
  6. BULLISH PROPULSION BLOCK

A Bullish Propulsion Block, Step by Step

Original OB, 50%, valid retest, then the new block.

Educational example

The dashed gold outline marks the second zone, the Propulsion Block.
04

Bearish Propulsion Block

Bearish

The mirror. The retest should not trade above the 50% threshold of the bearish Order Block. The reaction candle moves down strongly and closes below the bullish candles that approached it.

The same steps, flipped. First zone, retest below the midpoint, sharp reaction down, second zone.

Bearish propulsion block
  1. BEARISH ORDER BLOCK
  2. PRICE RETESTS
  3. RETEST STAYS BELOW 50%
  4. STRONG BEARISH REACTION
  5. NEW BEARISH ORDER BLOCK
  6. BEARISH PROPULSION BLOCK

A Bearish Propulsion Block, Step by Step

The inverse example.

Educational example

Mirrored constructed example.
05

Order Block vs Propulsion Block

Order Block
Forms before
A strong directional move

ORDER BLOCK = ORIGINAL ZONE

Propulsion Block
Forms after
A successful retest of a previous Order Block

PROPULSION BLOCK = NEW OB FROM A REACTION AT AN EARLIER OB

06

Does the Retest Respect 50%?

The rule is easy to see. Toggle between a valid retest and one that breaks the rule.

Bullish: Valid or Invalid?

Same Order Block, same approach. Two different retests.

Educational example

The candles are identical until the retest.

Bearish: Valid or Invalid?

The same idea, mirrored.

Educational example

For a bearish block the retest must stay below the midpoint.

Quick test. Does this retest qualify under the simplified Propulsion Block rule used in this lesson?

Knowledge check

Example A

A bullish OB. The retest stays above 50%, then a strong reaction follows. Does it qualify?

Knowledge check

Example B

A bullish OB. Price trades deeply below the 50% level. Does it qualify?

Knowledge check

Example C

A bearish OB. The retest stays below the midpoint, then a strong drop follows. Does it qualify?

The retest alone is not enough

Simply touching the original Order Block does not create a Propulsion Block. There should also be a respected midpoint, a strong reaction away, and a new Order Block.

Not enoughTOUCH ONLY
≠ PROPULSION BLOCK
Enough, in this frameworkVALID RETEST
+ REACTION
+ NEW OB
= PROPULSION BLOCK

Does a Propulsion Block guarantee a reaction?

No. The source says Propulsion Blocks should not be traded by themselves, and suggests extra confirmation. After the zone forms, several things can happen:

Price reacts againThe zone is respected.
Price partially reactsA weaker move.
Price trades throughThe zone is passed.
Price consolidatesIt stalls around the zone.
The zone failsIt stops mattering.
!

Common Mistakes

Calling every new Order Block a Propulsion Block

Correction: It must form after price reacts from a previous Order Block.

Ignoring the 50% midpoint

Correction: The source framework specifically uses the midpoint during the retest.

Marking the first Order Block as the Propulsion Block

Correction: The Propulsion Block is the NEW Order Block formed after the reaction.

Ignoring the reaction strength

Correction: A meaningful move away helps define the new block.

Assuming every Propulsion Block will hold

Correction: The zone can fail.

?

Knowledge Check

Knowledge check

Check 1

A bullish OB. The retest stays above 50%. A strong rally follows and a new bullish OB forms. Which zone is the Propulsion Block?

Knowledge check

Check 2

A bullish OB. Price retests and trades below the midpoint. Does this match the simplified Propulsion Block rule used in this lesson?

Knowledge check

Check 3

What comes first?

Knowledge check

Check 4

For a bearish Propulsion Block, where should the retest remain relative to the original OB midpoint?

★

Your Turn

Which Zone Is the Propulsion Block?

An original bullish OB, a retracement, a strong reaction and a second OB. Labels are hidden.

Educational example

Which lettered zone is the Propulsion Block?

Pick a letter to reveal the original OB, 50%, valid retest and the Propulsion Block.

Second practice. A bearish case.

Knowledge check

Did the Retest Respect 50%?

A bearish Order Block. Price rallies back into it and reacts down. The 50% line is marked. Did the retest respect the 50% rule?

How to find a Propulsion Block

  1. Step 1: Find an Order Block.
  2. Step 2: Wait for price to retest it.
  3. Step 3: Mark the 50% midpoint.
  4. Step 4: Check that price respects the midpoint.
  5. Step 5: Look for a strong reaction away.
  6. Step 6: Identify the new Order Block.
  7. Step 7: That new zone is the Propulsion Block.
07

Where Can Propulsion Blocks Appear?

On all timeframes. The source notes they may form more often on lower timeframes. That does not make lower timeframes best.

1mfrequent in the source 5mfrequent in the source 15m1H4HDaily

Frequent lower-timeframe examples in the source.

✓

What You Learned

  • A Propulsion Block starts with an existing Order Block.
  • Price must later retest that original Order Block.
  • The source uses the 50% midpoint as an important retest condition.
  • Bullish retests stay above the midpoint.
  • Bearish retests stay below the midpoint.
  • A strong reaction creates a new Order Block.
  • That new Order Block becomes the Propulsion Block.
  • Propulsion Blocks do not guarantee a future reaction.
Key rule

PROPULSION BLOCK = THE SECOND ORDER BLOCK, formed after price reacts from the first.

Propulsion blockORIGINAL OB
+ VALID 50% RETEST
+ STRONG REACTION
+ NEW OB
= PROPULSION BLOCK
NotGUARANTEED
REACTION

The whole lesson in one picture

First order block to propulsion block
  1. Original Order Block
  2. Retest
  3. Respect 50%
  4. Strong reaction
  5. New Order Block
  6. Propulsion Block
Remember

PROPULSION BLOCK = SECOND ORDER BLOCK, formed after price successfully reacts from the first.

All lessons

01Fair Value Gaps 02Inversion Fair Value Gaps 03Order Blocks 04Breaker Blocks 05Break of Structure 06Change of Character 07Change of Character Plus 08Equal Highs 09Equal Lows 10Liquidity 11Liquidity Grabs 12Premium & Discount Zones 13 · You are herePropulsion Blocks 14Liquidity Sweeps 15Change in State of Delivery 16Balanced Price Range 17Breakaway Gap

Further reading

Educational content only — not investment advice. Propulsion Blocks are an ICT / SMC interpretation of price, not a proven market law, and a chart cannot show whose orders are there. The source says they should not be used alone. All charts use constructed, illustrative data.