Beyond Basic Order Blocks
Most SMC education teaches you one type of order block. In reality, there are 7 distinct types, each forming under different conditions and carrying different probability levels.
1. Standard Order Block
The last opposing candle before a BOS. The most common type. Probability: moderate to high depending on displacement strength.
2. Breaker Block
A failed order block that gets swept then acts as a level in the opposite direction. When a bullish OB is broken to the downside, it becomes a bearish breaker block — resistance for future rallies. Breakers are powerful because they represent a level where institutions trapped traders.
3. Mitigation Block
Forms when an order block is partially mitigated (tested once) but doesn't fully fill. The remaining portion still has unfilled institutional orders. Mitigation blocks have lower probability than fresh OBs because some orders were already filled.
4. Propulsion Block
A small consolidation or inside bar that forms within an impulsive move. Represents institutional re-entry during displacement. These are smaller but form in strong trends and offer low-risk entries.
5. Rejection Block
Identified by a long wick that shows institutional rejection of a price level. The wick range becomes the zone. Useful for identifying where institutions are defending a level aggressively.
6. Vacuum Block
Forms at the origin of a Fair Value Gap. The FVG's creation point is where institutional orders initiated the imbalance. When the FVG gets filled, the vacuum block at its origin may still hold.
7. Institutional Candle
A candle with abnormally large body and minimal wicks showing pure institutional intent. Not technically an OB but marks where institutions moved price with maximum aggression. The body range becomes a strong zone.
Choosing Which Block to Trade
You will not trade all seven block types on every chart, and trying to is paralysis. Prioritise ruthlessly: the order block that sits at your higher-timeframe point of interest and was created by genuine displacement outranks every cleaner-looking block elsewhere. One well-located block with confluence beats six textbook blocks in no-man's-land.
Mitigation, Breakers, and Re-Entry
When price returns to and closes through an order block, it often converts into a breaker that flips polarity — old support becomes resistance. This gives you a structured re-entry in the new direction rather than a reason to keep fighting the broken idea. Treat a violated block not as a failure but as new information about who is now in control.