$npx -y skills add SKE-Labs/agent-trading-skills --skill order-blocksDefine and test ICT-style order-block candle zones. Use when labeling the last opposite candle before an objective displacement and structure break, without inferring hidden institutional orders.
| 1 | # Order Blocks Trading |
| 2 | |
| 3 | A candle-zone heuristic conventionally defined before a displacement and structure break. OHLC data cannot establish that institutional orders remain there or caused a later reaction. |
| 4 | |
| 5 | ## Identification |
| 6 | |
| 7 | ### Bullish Order Block |
| 8 | |
| 9 | 1. Find the **last bearish candle** before a strong upward move |
| 10 | 2. The move must break previous structure (higher high) |
| 11 | 3. Zone = open to low of that bearish candle |
| 12 | |
| 13 | ### Bearish Order Block |
| 14 | |
| 15 | 1. Find the **last bullish candle** before a strong downward move |
| 16 | 2. The move must break previous structure (lower low) |
| 17 | 3. Zone = open to high of that bullish candle |
| 18 | |
| 19 | ### Validation |
| 20 | |
| 21 | - **Displacement**: normalize return/range by ATR and elapsed bars |
| 22 | - **Break of Structure**: use an objective pivot and closed-bar buffer |
| 23 | - **Retest count/age**: record continuously and test first versus later returns |
| 24 | - **Context state**: define higher timeframe objectively and test its incremental value |
| 25 | |
| 26 | ## Workflow |
| 27 | |
| 28 | 1. **Identify** the zone with fixed timeframe, OHLC boundary, pivot, and displacement rules |
| 29 | 2. **Get candle data** around the zone: |
| 30 | ``` |
| 31 | get_candles_around_date(symbol=<symbol>, exchange=<exchange>, interval=<interval>, date=<date>) |
| 32 | ``` |
| 33 | 3. **Mark the zone** using `draw_chart_analysis` with type `demand` (bullish) or `supply` (bearish) |
| 34 | 4. **Wait for price to return** to the order block zone |
| 35 | 5. **Confirm entry** with LTF structure shift, rejection wicks, or volume increase |
| 36 | 6. **Stop loss** below/above the order block |
| 37 | 7. **Target** next opposing order block or liquidity level |
| 38 | |
| 39 | ## Evidence and Validation |
| 40 | |
| 41 | - Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes. |
| 42 | - Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried. |
| 43 | - Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter. |
| 44 | - Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status. |
| 45 | - Research basis: Treat an order block as a reproducible candle-zone heuristic, not proof of unfilled institutional orders. [Order-flow research](https://arxiv.org/abs/1011.6402) relates price impact to observable imbalance and market depth. |
| 46 | |
| 47 | ## Key Rules |
| 48 | |
| 49 | - Do not describe the zone as unfilled institutional inventory without order-level evidence. |
| 50 | - Test first and later retests with an expiry rule; keep failures in the sample. |
| 51 | - Define context and entry confirmation before evaluation and use closed bars. |
| 52 | - Quantify displacement in normalized units rather than a universal candle count. |
| 53 | |
| 54 | ## Related Skills |
| 55 | |
| 56 | - **fair-value-gaps** — test overlap between two explicitly defined candle-zone conventions |
| 57 | - **market-structure-shift** — BOS/CHoCH confirms the displacement that validates an OB |