Propulsion Blocks
Identification Rules
How to spot propulsion blocks on your chart and the key criteria that define this pattern.
- First identify an existing order block
- Price must retest the original order block without crossing the 50% threshold
- Price must react strongly from the retest, creating a new order block
- The reacting candle must close above/below preceding opposite-colored candles
Entry Rules
Optimal timing and methods for entering trades when propulsion blocks form.
- Wait for price to return and retest the propulsion block
- Look for additional confluence before entering
- Enter on confirmation of reaction from the propulsion block
Stop Rules
Where to place protective stops and how to manage risk throughout the trade.
- Place stop loss beyond the propulsion block boundary
- Consider volatility when setting stop distance
Target Rules
How to set profit targets and exit strategies for propulsion block setups.
- Target next significant liquidity level or structure
- Use technical indicators for exit signals
- Aim for minimum 1:2 risk-to-reward ratio
Confluence Factors
Additional conditions that strengthen propulsion blocks and boost win rates.
- Liquidity grabs near the propulsion block
- Fair value gaps aligning with the zone
- Technical indicator confirmation (MACD, RSI)
- Multiple timeframe alignment
- Market structure support
Failure Modes
Common scenarios where propulsion blocks fail and what warning signs to watch for.
- False propulsion block formation
- Weak reaction on retest
- Market structure break
Common Mistakes
Typical errors traders make with propulsion blocks and how to avoid them.
- Trading propulsion blocks in isolation
- Entering immediately upon formation
- Ignoring the 50% threshold rule
- Using only on higher timeframes