Reclaimed ICT Orderblock

Reinforcing order block theory and reclaimed blocks using Market Maker Buy and Sell Models

Definition

"we're dealing specifically with the reinforcing order block theory and reclaimed blocks"

Bullish Reclaimed Block

"what is a bullish reclaimed block is a candle or bar that was previously used to buy price and a short term bounce confirms minor displacement in the buy side of the curve these old blocks or down candles will be reclaimed for new longs"

Bearish Reclaimed Order Block

"a bearish reclaimed order block is a candle or bar that is was previously used to sell price and a short-term decline confirms minor displacement in the cell side of the curve these old blocks will be reclaimed shorts or new entries for short positions"

Market Maker Buy Model

"what this essentially is is when the market drops down and has a price swing lower reaching into a higher time frame or immediate term support level"

Support Level Types

"that support level can come in the way of an old high it can come in a way of old low it could be a bullet shoulder block it could it could be a filled void or closing in on a fair value gap any one of those things could lend well to a price support level"

The Curve Concept

"this market maker buy model the curve is basically a price swing lower that trades higher that's all market maker buy profile is or market maker buy model it's just understanding that the market is going lower to go higher"

Market Maker Buy Model Support Level Down Candle (Bullish OB) Low Reclaimed Reclaimed SELL SIDE OF CURVE BUY SIDE OF CURVE Price drops into support → Hedging creates down candles → Price rallies → Reclaims old down candles

Chart Example Quote

"we see the market dropping down from november 24th into november 29th okay so we have a market maker buy model where the market's going down to go higher see here this down candle on the buy side of the curve right here this down candle right before this movement up here this displacement shows that this was an actual hedging where they were buying early and the market drops lower okay once it makes its low here you can see the price did in fact come back down to this same down candle right to it here and was reclaimed or they recapitalized this old order block here and price started to move higher"

Market Maker Sell Model

"this is just the same thing just in reverse where we're anticipating the market to trade higher to go lower"

Recognition

"you may not see it happen before the fact you may notice that the market's making a high and you expect to see a sell-off so we can use this information just by focusing on the buy side of the curve"

Market Maker Sell Model Resistance Up Candle (Bearish OB) High Reclaimed Reclaimed BUY SIDE OF CURVE SELL SIDE OF CURVE Price rallies into resistance → Hedging creates up candles → Price declines → Reclaims old up candles

Chart Example Quote

"you see here the last beefy candle right before this drop down price trades up into it here and sells off the nest next example is this up candle here which would be a bearish order block would be reasonably seen as in the free tutorials you would think that this was probably a bearish indication to start looking for lower prices it doesn't do that here it trades through it but we see a climax high so now we see price doing what it trades up into this up candle this is a new short"

Hedging Concept

Why Market Makers Hedge

"the market makers are going to be scaling in early so they're going to have areas at which they start buying early because their positions are much larger than us as a retail trader they require a great deal of movement and time to price in their orders because they can't facilitate their entire order on one transaction one specific move from a level they have to scale that position in and that's in the form of hedging"

Hedging During Sell Side of Curve (Buy Model)

"as the price drops down into the lower level support they're going to be building in more positions and you'll see as you watch price go lower and lower they'll be small little transactions that cause the market to create short term little lows in the market so as the market moves lower every time we see a small little bounce in price action that is a minor displacement showing that there was new accumulation being taken into the marketplace in other words the smart money is actually accumulating new long positions"

Hedging During Buy Side of Curve (Sell Model)

"matching up during the buy side of the curve while price is being built up into a premium the market makers are actually going to hedge into that rally selling short they have deeper pockets than us they can do this for a longer period of time and as they do this their pricing in more short positions"

Minor Displacement as Evidence

"we understand that market makers and smart money they're the only ones that can move price around so if there is a displacement in price and we see bearishness after an up candle we can assume that this is going to be evidence that they have been hedging and selling short early"

Sell Side vs Buy Side of the Curve

Sell Side of the Curve (Buy Model)

"first we have to understand the cell side of the curve on a market maker by model that's the drop down into that support level before we see the move higher"

Buy Side of the Curve (Buy Model)

"eventually we'll see the price move higher off of a major support level and we'll start seeing the buy side of the curve come underway the market will start pricing new higher highs"

Key Observation Point

"as it does we're going to be focusing on those old down candles during the cell side of the curve every time there was a bullish order block that was created on the major price swing going lower and it saw a little bit of a minor movement higher that has indicated that there was hedging going on and that down candle is what we're going to be looking to reclaim or watch price recapitalize that old order block now that we're on the buy side of the curve"

Reclaim Process

Matching Process (Buy Model)

"every new buying opportunity is going to be matched up to the previous down candle while the price was dropping earlier on the cell side of the curve and ultimately everything will match up with the down candles on both sides of the market maker by model"

Matching Process (Sell Model)

"every single time we see the market trade back up into a up candle or bullish candle right before the down move during the buy side of the curve that bearish order block is going to be reclaimed and you can take that as a new short"

Trader Pitfall Warning

"many times traders that are looking at those as entry points they end up getting stopped out because what you're doing is they're piggybacking on an entry that is based on a hedging motive on the market maker so as the lows keep creating lower lows but every time the price makes a smaller short term move higher"

Reference Point Selection

"we're going to be referencing that last down candle because that's a bullish order block but it's occurring we're watching the bullish order blocks or the down candles right before a small little price moving higher during the sell side of the curve"

X-Ray Vision into Price Action

"we can match that up and see it like x-ray vision into price action by looking at every single up candle that has a small displacement or short-term decline that's confirming that there was hedging on the wave"

Summary of Application

"in summary we use the market maker buy and sell models to be able to match up old order blocks during the buy side and the cell side of the curve and we wait for that reclaimed mechanism that takes place where the market makers will use these same reference points and facilitate new positions"

Study & Review

Click each card to reveal the answer (from transcript quotes)

What is a bullish reclaimed block?
"a candle or bar that was previously used to buy price and a short term bounce confirms minor displacement in the buy side of the curve these old blocks or down candles will be reclaimed for new longs"
What is a bearish reclaimed order block?
"a candle or bar that is was previously used to sell price and a short-term decline confirms minor displacement in the cell side of the curve these old blocks will be reclaimed shorts or new entries for short positions"
What is the Market Maker Buy Model?
"the curve is basically a price swing lower that trades higher that's all market maker buy profile is or market maker buy model it's just understanding that the market is going lower to go higher"
Why do market makers hedge their positions?
"their positions are much larger than us as a retail trader they require a great deal of movement and time to price in their orders because they can't facilitate their entire order on one transaction one specific move from a level they have to scale that position in and that's in the form of hedging"
What does minor displacement indicate during the sell side of the curve?
"every time we see a small little bounce in price action that is a minor displacement showing that there was new accumulation being taken into the marketplace in other words the smart money is actually accumulating new long positions"
Which candle do you reference during the sell side of the curve in a buy model?
"we're going to be referencing that last down candle because that's a bullish order block but it's occurring we're watching the bullish order blocks or the down candles right before a small little price moving higher during the sell side of the curve"
What types of levels can serve as support in a Market Maker Buy Model?
"that support level can come in the way of an old high it can come in a way of old low it could be a bullet shoulder block it could it could be a filled void or closing in on a fair value gap any one of those things could lend well to a price support level"
How do you identify reclaimed order blocks in a sell model?
"every single time we see the market trade back up into a up candle or bullish candle right before the down move during the buy side of the curve that bearish order block is going to be reclaimed and you can take that as a new short"
What is the matching process in reclaimed order blocks?
"every new buying opportunity is going to be matched up to the previous down candle while the price was dropping earlier on the cell side of the curve and ultimately everything will match up with the down candles on both sides of the market maker by model"
What evidence confirms hedging during a rally in a sell model?
"if there is a displacement in price and we see bearishness after an up candle we can assume that this is going to be evidence that they have been hedging and selling short early"
Why do traders get stopped out when piggybacking on hedging entries?
"many times traders that are looking at those as entry points they end up getting stopped out because what you're doing is they're piggybacking on an entry that is based on a hedging motive on the market maker so as the lows keep creating lower lows"
How can reclaimed order blocks give you x-ray vision into price action?
"we can match that up and see it like x-ray vision into price action by looking at every single up candle that has a small displacement or short-term decline that's confirming that there was hedging on the wave"