ICT Order Block OB Calculator

How to Use the ICT Order Block OB Calculator

This tool helps you precisely define key levels of an identified Order Block and its context within a larger price swing. Follow these steps:

1. Identify the Order Block Candle: On your chart, find the specific candle that represents your Order Block. Enter its Open, High, Low, and Close prices into the "Order Block Candle" section.
2. Define the Contextual Swing: Identify the larger price leg (from a swing high to a swing low, or vice-versa) that this Order Block is a part of. Enter these Swing High and Swing Low prices.
3. Select OB Type: Specify whether you've identified a "Bullish OB" (the last down-candle before a move up) or a "Bearish OB" (the last up-candle before a move down).
4. Analyze the Results: The calculator provides the Mean Threshold (50% level of the OB), its range, and importantly, its status within the Premium/Discount array of the larger swing.

Key Order Block Concepts Explained

Order Blocks, as interpreted in ICT methodology, represent specific areas that can act as potential support or resistance. This calculator helps quantify several important concepts related to them:

Mean Threshold (MT)

This is the 50% level of the Order Block candle's entire range (from its high to its low). It's often a very sensitive price point where reactions can occur. Some traders look for entries at the open of the OB, while others wait for price to trade to the Mean Threshold for a more refined entry.

Premium vs. Discount

A core ICT principle is to buy at a discount and sell at a premium relative to a defined price range. This calculator checks if your Order Block's Mean Threshold falls into the premium (upper 50%) or discount (lower 50%) of the larger contextual swing you define. A Bullish OB in a Discount is generally a higher probability setup, and a Bearish OB in a Premium is likewise favored.

A Real-World Example: Analyzing a Bullish OB

Let's say a trader, Alex, identifies a potential Bullish Order Block on a chart. It's the last down-candle before a strong move up that broke market structure.

• The Order Block candle has an Open of 1.0840, a High of 1.0850, a Low of 1.0800, and a Close of 1.0810.
• This OB is part of a larger upswing that started from a Swing High of 1.0950 and reached a Swing Low of 1.0750.

Alex enters all of these values into the calculator and selects "Bullish OB".

The Result: The calculator instantly provides the key levels:

• Mean Threshold (MT): 1.0825 (the midpoint of the OB candle's High and Low).
• Swing Equilibrium (50%): 1.0850 (the midpoint of the entire swing).
• Premium/Discount Status: It reports the OB is in a Discount (Favorable) zone, because its Mean Threshold (1.0825) is below the swing's 50% Equilibrium level (1.0850).

This gives Alex the objective data to confirm that his identified Bullish Order Block is located in a favorable area of the price leg, strengthening his trade thesis.

Frequently Asked Questions (FAQ)

What is the "Mean Threshold" of an Order Block?

The Mean Threshold (MT) is the exact midpoint, or 50% level, of the Order Block candle's entire range from its high to its low. It is considered a highly sensitive price level within the OB and is often used by traders as a precise point of interest for entries or for managing trades.

How does the calculator determine if an OB is "Favorable"?

The calculator determines favorability based on classic ICT principles of buying in a discount and selling in a premium. A Bullish Order Block is marked as "Favorable" if its Mean Threshold is in the discount (lower 50%) of the larger price swing. A Bearish Order Block is marked "Favorable" if its Mean Threshold is in the premium (upper 50%) of the swing.

Does this calculator find Order Blocks for me?

No. This tool is designed to analyze a candle that you have already identified as a potential Order Block based on your own analysis of market structure, displacement, and liquidity. Its purpose is to provide precise, objective measurements for the key levels of the OB you have found, removing subjectivity from the process.