Extreme vs decisional order blocks

What it is

Structure-mapping SMC schools sort the order blocks in one leg. The extreme order block is the one at the very origin of the move, the last line of defence. The decisional order block is the nearest one behind the current inducement, partway through the leg. If price respects the decisional block, the extreme one may never be reached; if the decisional block fails, the extreme one is the next place to look.

Two related words: a point of interest (POI) is any zone you expect a reaction from (an order block, FVG, supply or demand zone), the SMC equivalent of ICT's PD arrays. A zone is 'mitigated' once price has traded back into it and is usually no longer used; an 'unmitigated' zone hasn't been revisited yet. This is not the same thing as ICT's mitigation block.

How to spot it

• Extreme OB: the last opposite candle at the very start of the leg.
• Decisional OB: the order block nearest to price, behind the latest inducement.

How to use it

• Wait for the inducement in front of the decisional block to be swept before trading it.
• If the decisional block breaks, look to the extreme block, with a wider stop.
• Prefer unmitigated zones.

Common mistakes

• Trading every order block in a leg.
• Confusing 'mitigated zone' with ICT's 'mitigation block'.

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