Consequent encroachment and mean threshold

What it is

Consequent encroachment (CE) is the midpoint of a fair value gap. ICT also uses it for the midpoint of a single long wick. Mean threshold (MT) is the same idea for an order block: its 50% level.

The reasoning is that a gap or block that is still valid should hold around its middle. A candle body closing through the CE or mean threshold is read as a sign the zone is weakening.

Sources disagree on two details: whether the mean threshold is measured on the order block's body or its whole range, and whether a touch of the CE counts or a close is needed. Pick one rule and keep it.

How to spot it

• Mark the fair value gap or order block.
• Halve it: that line is the CE (gap) or mean threshold (block).
• Some traders also mark the 25% and 75% levels (quadrants).

How to use it

• Use the CE as a limit-order entry inside the gap, and the far edge of the gap or the swing as the stop.
• Treat a close through the CE or mean threshold as a reason to cut or skip the trade.

Common mistakes

• Treating the 50% line as exact; it's a reference, not a wall.
• Mixing body-based and range-based measurements from one trade to the next.

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