Mean Threshold

The rules

1. The level: 50% of the block's body, open to close. Wicks are not part of it.
2. Bearish block: the last up candle before a strong drop (bullish: last down candle before a rally).
3. Wicks are fine: price can trade into the threshold and still respect the block.
4. Closes decide: a body close beyond the threshold means the block failed; stop trading it.
5. Invalidation: your stop goes just beyond the threshold, not somewhere random.
6. Quality first: the block still needs displacement, a gap and a break of structure.

How to mark it

1. Find a valid order block: displacement away, structure broken.
2. Mark the block's body and draw a line at its 50%.
3. Wait for price to return to the block.
4. Watch the closes: wicks into the 50% are fine, a body close through it is not.
5. On a rejection close, enter with the stop just beyond the 50%.

The 1:3 trade

Entry at the close of the rejection candle. Stop just above the mean threshold, because a close above it would mean the block failed. Target the low the displacement left. Reward is exactly three times the risk.

Before you enter

• The block came from displacement that broke structure
• The 50% of the body is marked
• Price only wicked into the 50%
• The candle closed back on the block's side
• Stop just beyond the 50%, target the next liquidity

Common mistakes

• Measuring the 50% from wick to wick instead of the body
• Treating a wick through the threshold as a failure
• Holding a block after a body close beyond its 50%
• Placing the stop far beyond the block for no reason
• Entering before the rejection candle closes

Key terms

• Mean threshold: 50% of the order block's body
• Order block: last opposite candle before displacement
• Bearish OB: last up candle before a strong move down
• Invalidation: the price where the idea is proven wrong
• Rejection: a wick into a level with the body closing away
• R:R: reward divided by risk; 1:3 means 3R for 1R risked

Wicks are fine. Closes decide.