Reclaimed Order Block in ICT/SMC [MM Buy-Sell Model] –[TFlab]

A Reclaimed Order Block in the ICT (Inner Circle Trader) methodology is a critical price zone where institutional traders and market makers accumulate orders. Initially, it functions as a standard Order Block, but its significance is reinforced when price retests the zone after a breakout, establishing a new directional bias.
In forex education, these zones are often highlighted for their tendency to exhibit minor price displacements (small retracements or extensions) before resuming their trend. They act as support or resistance, guiding price movements based on institutional accumulation.

Reclaimed Order Blocks in Market Maker Models

1. Market Maker Buy Model (Bullish Scenario)
In the Market Maker Buy Model, Reclaimed Order Blocks appear on the sell side of the market. Here’s how they function:

1. Institutional traders accumulate buy orders in these zones.
2. Price reacts to the retest, confirming bullish continuation.
3. These blocks mark the starting point of an upward trend.

How to Trade Bullish Reclaimed Order Blocks

1. Identify the last bearish candle before a minor upward displacement.
2. The block acts as support, propelling price higher.
3. Confirmation comes when price holds the zone and resumes its uptrend.

2. Market Maker Sell Model (Bearish Scenario)
In the Market Maker Sell Model, Reclaimed Order Blocks form on the buy side of the market. Key characteristics include:

1. Institutions gather sell orders in these zones.
2. A minor upward displacement (liquidity grab) often precedes the drop.
3. The block serves as resistance, driving price downward.

How to Trade Bearish Reclaimed Order Blocks

1. Locate the last bullish candle before a small pullback.
2. The block acts as a rejection zone, leading to a downtrend.
3. Price confirms the bearish bias when it fails to break higher.

Key Trading Considerations

1. Higher Time Frame Alignment: Always align with HTF (Higher Time Frame) levels for stronger confirmation.
2. Liquidity Confirmations: Watch for liquidity sweeps before price reacts to the block.
3. Risk Management: Use institutional-grade risk techniques (e.g., stop-loss beyond recent swing points).

Conclusion
Reclaimed Order Blocks are powerful tools for identifying institutional activity and predicting price movements. By mastering their structure—whether in bullish or bearish markets—traders can enhance their entry precision and trade management.
For optimal results, combine ICT concepts with liquidity analysis and time-based confirmations to validate high-probability setups.