ICT Suspension Blocks

The ICT Suspension Blocks indicator identifies a specific three-candle price action pattern that highlights brief pauses in price efficiency and marks them as potential support or resistance zones. This tool helps traders visualize areas of temporary imbalance where price often returns for a reaction or continuation.

Usage

The Usage section describes how the script can be used to identify key market levels. A Bullish Suspension Block (+SB) acts as a potential support zone, while a Bearish Suspension Block (-SB) serves as a potential resistance area. Traders can use these blocks for:

• Trend Following: Identifying blocks that form in the direction of the current trend to find continuation entries.
• Reversals: Monitoring opposite-direction blocks that may indicate trend exhaustion.
• Consequent Encroachment (CE): The 50% equilibrium level of the block is often used for precise entries, stop-loss placement, or partial profit targets.

Details

The indicator identifies a Suspension Block when three consecutive candles move in the same direction but leave a body-to-body imbalance (a gap between the bodies of consecutive candles).

• Bullish SB: Three bullish candles where Candle 1's close is below Candle 2's open, and Candle 2's close is below Candle 3's open.
• Bearish SB: Three bearish candles where Candle 1's close is above Candle 2's open, and Candle 2's close is above Candle 3's open.

The tool extends these zones forward until they are "inversed" (broken by price). Once a zone is inversed, it changes to a neutral color, signaling a potential shift in market structure.

Settings

Suspension Block

• Bullish Background Color/Border: Sets the visual appearance for bullish zones.
• Bearish Background Color/Border: Sets the visual appearance for bearish zones.
• Inversion Background Color/Border: Determines the color of the block once price closes through it.
• Extend Boxes Forward: If enabled, zones extend indefinitely until inversed.
• Forward Bars if Extension Disabled: Sets a fixed horizontal length for boxes if the extension is turned off.
• Maximum Boxes Displayed: Controls the total number of historical blocks shown on the chart for performance.

Consequent Encroachment

• Show CE Line: Toggles the visibility of the 50% equilibrium line.
• CE Line Style/Width: Adjusts the visual style (solid, dashed, dotted) and thickness of the midpoint line.

FAQ

How do I identify a valid Suspension Block?

A valid block requires three consecutive candles of the same color with specific body-to-body gaps between them, indicating an impulsive move.

What happens when price breaks through a block?

The indicator detects an "inversion." The box will change to the configured Inversion Color, signifying that the previous support/resistance level has been breached.

How can I access the ICT Suspension Blocks?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.