Analysis of Price Reversal Before Bullish Order Block: Community Insights & Trading Implications

The analysis addresses a Reddit user’s query about price reversal before a marked bullish order block [1]. Community responses highlighted core themes: over-reliance on order block indicators (favoring price action instead), price reacting to stronger support levels like Point of Control (POC), and limitations of ICT concepts [1]. External research confirms these observations: valid order blocks require liquidity sweeps and alignment with market structure [2], while POC (highest volume level) acts as a stronger support/resistance zone [3][4]. Supply/demand imbalances at POC often trigger reversals before order blocks are reached [5].

1. POC Priority
   : Volume-based support (POC) frequently overrides order blocks as a reversal trigger, given it represents the fairest price agreement between buyers and sellers [3][4].
2. Order Block Validity
   : Invalid blocks (lacking liquidity sweeps or market structure alignment) fail to attract price action [2][7].
3. Strategy Integration
   : Traders who combine order blocks with volume profile and price action reduce false signals [3][6].
4. Community-Research Alignment
   : Reddit feedback on over-reliance on order blocks aligns with data-driven research on indicator limitations [1][6].

• Risks
  : Exclusive reliance on order blocks leads to false signals and missed reversal points [6]; subjective order block marking increases trading errors [6].
• Opportunities
  : Integrating volume profile (POC) into trading strategies improves entry/exit accuracy [3][4]; validating order block criteria (liquidity sweeps) enhances reliability [2].

Critical takeaways for traders:

• POC is a volume-based support/resistance level that often takes priority over order blocks [3][4].
• Valid order blocks require liquidity sweeps and alignment with market structure [2].
• Avoid over-relying on single indicators; combine order blocks with price action and volume data [6][8].
• Supply/demand imbalances at key levels drive price reversals [5].