ICT Suspension Blocks

ICT Suspension Block (SB) Indicator

The ICT Suspension Block (SB) is a three-candle price action pattern that often act as support or resistance zones. A Suspension Block is a three-candle pattern showing a brief pause in price efficiency before continuation. These zones frequently serve as areas where price may later return, offering traders potential trading opportunities.

Pattern Definition
A Suspension Block forms when three consecutive candles move in the same direction but leave behind a specific body-to-body imbalance. (a gap between the bodies of consecutive candles).

Bullish Suspension Block (+SB):

• All three candles are bullish (close > open).
  
• Candle 1 close < Candle 2 open.
  
• Candle 2 close < Candle 3 open.
  
• Zone = from Candle 1 close to Candle 3 open.
  

Bearish Suspension Block (-SB):

• All three candles are bearish (close < open).
  
• Candle 1 close > Candle 2 open.
  
• Candle 2 close > Candle 3 open.
  
• Zone = from Candle 1 close to Candle 3 open.
  

These zones mark areas where price was temporarily imbalanced. Price often “respects” these levels later, either bouncing from them or breaking through them, which can provide valuable trade context.

Application

• Suspension Blocks are used to mark areas where price may later react:
  
• A Bullish SB can act as potential support.
  
• A Bearish SB can act as potential resistance.
  

The significance of a block depends on market context. Blocks formed during strong, impulsive moves tend to be more meaningful than those in consolidation.

How the Indicator Works

• Identifies bullish and bearish suspension blocks using body gap imbalances.
  
• Draws colored zones (green = bullish, red = bearish) directly on the chart.
  
• Extends zones forward until they are inversed by price action.
  
• Once inversed, zones switch to a neutral color, allowing traders to annotate/extend them manually if desired.
  
• Includes Consequent Encroachment (CE) lines (the 50% equilibrium of the block), which many traders use as reaction levels.
  

Features

• Customizable colors for bullish, bearish, and inversed zones
  
• Extend blocks indefinitely forward or limit them to a set number of bars
  
• Adjustable maximum number of displayed blocks for performance control
  
• Consequent Encroachment (CE) (Middle Point, 50%, Equilibrium) line feature
  
• Configurable CE line style, color, and width
  

How to Use It

• Trend Following: Blocks forming in the direction of trend can act as continuation zones.
  
• Reversals: Opposite-direction blocks may signal exhaustion and potential turning points.
  
• Liquidity Levels: CE lines (50% of block) often serve as reaction levels for entries, partials, or stop placement.
  
• Context is Key: Suspension Blocks should not be used in isolation. Combine them with market structure, liquidity pools, or other confluence factors for best results.
  

Notes

• This indicator is intended for technical analysis and research.
  
• It should always be combined with proper risk management and a complete trading plan.
  
• Past market behavior does not guarantee future results.