Mean Threshold
Also: midpoint, 50% level, halfway point
The mean threshold is the 50% midpoint of an order block's body range, measured from the open to the close of the order block candle — wicks are excluded. It is identified using the Fibonacci 50% level applied to the open-to-close span. The best order blocks will not see price trade below (bullish) or above (bearish) the mean threshold at all; a breach of the mean threshold is a warning sign and the stop loss may be moved to just below (bullish) / above (bearish) this level once price has run away from the order block.
Identification2
- Apply Fibonacci 50% level from the open to the close of the {direction} order block candle — do not include wick highs or lows.
- The mean threshold level is the midpoint of that open-to-close range.
Entry1
- Not a primary entry trigger — used for stop management only.
Stop1
- After price runs away from the {direction} order block, raise the stop loss to just below (bullish) / above (bearish) the mean threshold to reduce risk when applicable.
Target1
- Not applicable — the mean threshold is a risk management reference, not a target.
Invalidation2
- Price trading convincingly through the mean threshold (not just piercing it slightly) is a degraded order block — the setup still exists but quality is reduced.
- Price closing beyond the full order block body (past the open, not just the mean threshold) invalidates the order block entirely.
ICT Quotes
"Ideally, the best order blocks will not see price trade down below the midway point of the entire body of the candle, you're going to measure the open to the close on the down candle to measure where the middle of it is do not use the wicks don't use the very high or the very low."
"just pierces it just a little bit but does not go down below the body of the down candle"
"If we break the mean threshold, that type of candle where it's already traded down into a previous order block, it's bullish. If this loses its mean threshold, chances are, it's probably not a good trade. So it means you can have a really ultra tight stop loss on your long entry. Or you can have immediate feedback that you're on the wrong side of the marketplace, and you probably are better off either go into the sidelines, or many times looking for a reversal to go short."
Timeframes
Version History7 versions
27-ICT Mentorship Core Content - Month 4 - Orderblocks.srt
"Measure your Fibonacci level 50% Level or halfway point is the mean threshold on a bullish order block. And same thing said with a bearish order block but you just don't want to see price drive down d…"
32-ICT Mentorship Core Content - Month 4 - ICT Propulsion Block.srt
"It should never see the mean threshold, break half of the body's height or the middle of the range of their candles body. That That means thresholds should not give way this sensitivity is going to be…"
Reinforces definition in context of propulsion blocks — mean threshold violation explicitly signals setup failure and warrants considering a reversal.
ICT YT - 2022-05-27 - ICT Mentorship 2022 Episode 35.srt
""this is what I call the mean threshold mean threshold was taken today. And that to me, bodes well for a continuation to take out this short term high""
2022 application to ES/NQ: when the mean threshold of a bearish order block is reached, ICT interprets this as a signal that price will likely continue to take out the high above the order block. This extends the 2016 definition (mean threshold as stop-raise reference) with a new use: a REACHED mean threshold on a bearish OB is a CONTINUATION signal for the opposing direction — bullish continuation is expected to clear the OB's high.
ICT YT - 2023-01-18 - ICT 2023 Mentorship - ES Live Execution and Mean Threshold Risk Management.srt
"My stop loss is below the mean threshold mean threshold of the down close candle the most closest to the 940 below okay, so the middle of that candle."
Live ES execution confirms the 2016 definition — stop placed at mean threshold (midpoint) of the closest down-close candle to the target level. No change to definition; confirms active use in 2023.
ICT YT - 2024-08-20 - ICT 2024 Mentorship - Lecture 13.srt
"Mean threshold is a middle of a order block, the equilibrium price point or midpoint of a gap, whether it's a buy side imbalance, outside efficiency or a sell side imbalance, buy side efficiency... th…"
Explicit on-camera correction of terminology: mean threshold = midpoint of an ORDER BLOCK body only. Consequent encroachment = midpoint of a GAP, FVG, or wick. ICT gives this correction explicitly in a live session, indicating students were conflating the two terms. No material change to definition — this is a naming precision clarification consistent with 2016/2022 usage. Predates the Lecture 29 formal restatement; both entries confirm the same rule.
ICT YT - 2024-09-16 - ICT 2024 Mentorship - Lecture 28.srt
"it rolls through this consequent, or, I'm sorry, mean threshold, this down closed candle, that's this, if it's bullish, it shouldn't trade and go below on a closing basis. No candlestick should close …"
2024 live-session refinement: mean threshold of a single down-closed candle (not an order block stack) is used as the same invalidation signal. The rule is explicit: no *closing* basis below the mean threshold for a bullish context. Wicks through it are tolerated. This extends the concept from formal order blocks to any individual reference candle in real-time intraday analysis.
ICT YT - 2024-09-17 - ICT 2024 Mentorship - Lecture 29.srt
"working towards the low end of that breaker, spiking through mean threshold, which is the midpoint whenever there's an order block, half of that range is always mean threshold. If it's a gap or a wick…"
Terminological clarification: "mean threshold" applies when the PD array is an order block (body). When the PD array is a gap or a wick, the midpoint is called "consequent encroachment" — a distinct label for the same 50% level. No material conflict; this is a naming precision refinement that was implicit in prior teaching.
Notes
Sub-concept extracted from the order block file per instructions. The mean threshold is used in two ways: (1) as a quality filter at identification — better OBs never reach it; (2) as a stop-raise trigger after the trade is in profit. ICT also references the mean threshold of a liquidity void in the mitigation block file (file 28) in the same sense — a 50% equilibrium of the void. File 32 (Propulsion Block) adds a third usage: mean threshold as a hard invalidation line — if a propulsion candle loses its mean threshold, the trade is considered wrong-sided and a reversal should be considered. 2024 refinement (Lectures 28 & 29): ICT extends mean threshold from order blocks specifically to *any* down-closed (bearish) or up-closed (bullish) candle used as a reference. For an individual candle, mean threshold = midpoint of the body (open to close). Critical rule: no candle should *close* beyond the mean threshold of a reference candle if the bias is intact — wicks through it are tolerated but body closes are not. Lecture 29 also clarifies the naming distinction: when the PD array is a gap or a wick (not an order block body), the midpoint is called "consequent encroachment" — "always mean threshold [for order blocks]. If it's a gap or a wick, the midpoint is consequent encroachment."