Trading Models⏱️ 15 min

Model Order Flow: Following the Trend via Order Block & FVG Flow

Model Order Flow is the most powerful trend following model in the ICT system. When the market enters a state of one-way distribution (Institutional Order Flow), the IPDA algorithm will continuously use Order Block (OB) or Fair Value Gap (FVG) in the same direction as a platform to push the price forward without needing to retreat deeply into the Discount/Premium areas.

Two Main Types of Order Flow

Order Flow has two common operating forms: using Order Block (OB) or Fair Value Gap (FVG). Identifying the correct Order Flow type helps traders set up Limit orders correctly right at these price buffer zones.

1. OB Order Flow (Order Flow Through Order Block)

In OB Order Flow, every time the price breaks the structure and creates a new high/low, the short-term correction will end as soon as it hits the block Order Block (OB) nearest. The opposition was completely overwhelmed and could not push the price to close through this OB block.

Order Flow với Order Block (Bullish)

📷 Bullish OB Order Flow: Price continuously creates new highs and perfectly retraces to bullish OB blocks before continuing to push up to Buyside Liquidity.

2. FVG Order Flow (FVG / CISD)

In FVG Order Flow, the trend is extremely strong and decisive. Price rarely retraces deeply to OB but only touches the upper (or lower) edge of the gaps Fair Value Gap (FVG) or CISD (Change in State of Delivery) area and then immediately turn it on.

Order Flow với FVG / CISD (Bearish)

📷 Bearish FVG Order Flow: Extremely strong downtrend. Price broke the structure (CISD), leaving FVG and continuously using FVG as a platform to push prices lower.

How to Set Up Orders According to Order Flow

  • Identifying consensus: Observe price behavior during regression. If the price respects OB or FVG 2 times in a row, the Order Flow has been confirmed.
  • Enter the command (Entry): Place a Limit order at the nearest edge of the next OB or FVG (for example, open a Buy at the upper edge of the Bullish FVG).
  • Stop Loss: Place just below the bottom edge of the OB or FVG. If the price closes through this zone, the Order Flow has been broken and we must exit the order immediately.

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