Propulsion Block: Institutional Momentum Acceleration Blocks

In the ICT method, Propulsion Block is a special form of Order Block (OB) with extremely high winning probability and extremely strong price push. It appears when an initial Order Block is tested (Retested) by a second Order Block formed immediately after.

🚀 Principle of jet launcher: When the price touches the second Order Block (OB2), the first Order Block (OB1) will act as a "propulsion launcher" that activates the algorithm to push the price extremely quickly and decisively according to the trend, not allowing the price to sink again.

1. Detailed Propulsion Block Formation Mechanism

The process of forming a Propulsion Block takes place through the following specific steps:

Formation of OB1: The market created the first Order Block (OB1) and pushed the price strongly.
Formation of OB2: The price retraces short-term, creating a second Order Block (OB2). This OB2 block moves back and retests into the price range of OB1.
Set Propulsion Block: At this time, block OB1 is officially called Propulsion Block. Block OB2 acts as the "detonator".
Price push reaction: In the future, when the price returns to retest OB2 again, the price will react extremely sensitively here and bounce off immediately.

Cơ chế bệ phóng kích đẩy Propulsion Block thực tế trên TradingView

📷 Figure 11.1: Actual Propulsion Block order on Nasdaq chart. OB1 acts as Propulsion Block when retested by OB2. The Buy position is activated when the price regresses to retest OB2 again, creating a strong upward push for the price.

2. Trading Rules & Risk Management Propulsion Block

When trading with Propulsion Block, traders are required to comply with:

Entry point: Place a Limit order at the upper boundary of block OB2 or at the opening price of OB2 when the price retests.
Stop Loss - SL: Set stop loss (SL) at point 50% (Consequent Encroachment - CE) of block OB1 (Propulsion Block). If the candle closes below the 50% CE level of OB1, this setup is completely invalidated because the push of the large money flow has weakened.
Filter Propulsion trash: Only use this setup if OB1 and OB2 are in trend phase and were generated after a large liquidity sweep on the main time frame (HTF).