Order Blocks

Overview

The Order Blocks feature automatically identifies and displays significant price zones where institutional buying or selling has likely occurred. These zones, known as order blocks, represent key areas of supply and demand and often act as strong support or resistance levels where future price reversals may occur.

The indicator uses an advanced algorithm to analyze price action, volume, and order flow to detect these critical zones in real-time. It also includes several advanced features, such as Breaker Blocks, which identify when an order block has been invalidated and is likely to act as the opposite (e.g., a broken support level becoming resistance).

Settings

You can customize the Order Blocks detection to fit your analysis style, including setting up multiple timeframes and adjusting the visual display.

Setting	Description
Length	Sets the lookback period for the order block detection algorithm. A lower number is more responsive to recent price action, while a higher number focuses on more significant, longer-term zones.
Maximum Order Blocks	Limits the number of order blocks displayed on the chart to keep your analysis clean and focused on the most relevant zones.
Order Blocks 1 & 2	Allows you to enable and configure up to two different timeframes for order block detection, enabling multi-timeframe analysis.
Strength Visuals	When enabled, the size of the order block boxes will dynamically adjust based on their significance, with larger boxes representing stronger zones.
Volume Visuals	Displays volumetric bars and other visual cues within the order blocks to provide deeper insight into the volume and order flow that formed the zone.
Hide Overlaps	When enabled, the indicator will hide overlapping order blocks to provide a cleaner and less cluttered chart.
Breaker Blocks	When enabled, the indicator will automatically convert a mitigated (broken) order block into a "breaker block," which often acts as a reversal zone.
Quality Filter	Enables a quality filter to remove lower-probability order blocks. You can set the Quality Filter Level to control how strict the filtering is.
Key Level	Displays a key price level within each order block. You can choose between the Half (midpoint) of the block or a Volume-based level.
Adaptive Transparency	When enabled, the transparency of the order blocks will dynamically adjust based on their significance. More significant blocks will appear more solid and less transparent.
Show Text / Text Color	Controls the display, size, and color of the text labels within the order blocks.

Best Practices & Usage

• Identify Key Reversal Zones: Order blocks are powerful tools for spotting potential reversals. A bullish order block can act as a strong support level where you might look for buying opportunities. A bearish order block can act as strong resistance for selling opportunities.

• Use Multiple Timeframes: Enable both Order Blocks 1 and Order Blocks 2 to view zones from different timeframes simultaneously. A confluence of order blocks from multiple timeframes at the same price level represents a very high-confidence zone.

• Watch for Breaker Blocks: A Breaker Block is a high-probability setup. For example, when a bullish order block (support) is broken and turns into a bearish breaker, it often acts as a strong resistance level for a continued move down.

• Filter for Quality: For a cleaner and more focused analysis, it is recommended to keep the Quality Filter enabled. A level of 3 or higher is ideal for filtering out weaker zones.

• Confirm with Other Tools: Order blocks are most effective when used in conjunction with other technical analysis tools. A buy signal from the main indicator that occurs within a bullish order block is a much stronger confirmation than a signal in isolation.