Pivot Candle Order Blocks

The Pivot Candle Order Blocks indicator identifies potential supply and demand zones by highlighting the body of pivot reversal candles as order blocks. This tool helps traders visualize key institutional activity areas where price may find support or resistance upon a retest.

Usage

The indicator automatically detects Pivot Highs and Pivot Lows based on user-defined lookback and lookforward periods. When a pivot is confirmed, the script plots a box covering the price range between the open and close (the body) of that specific pivot candle.

• Support/Demand Zones: Bullish order blocks are formed at Pivot Lows. Traders often look for these zones to act as support where price might bounce or reverse upward.
• Resistance/Supply Zones: Bearish order blocks are formed at Pivot Highs. These zones typically act as resistance where price might stall or reverse downward.

The length of these boxes can be adjusted to project further into the future, allowing traders to see how historical order blocks align with current price action.

Details

The script uses the ta.pivothigh() and ta.pivotlow() functions to identify structural turning points. Unlike traditional order block indicators that might look for specific candle sequences or "engulfing" patterns, this script focuses specifically on the candle that forms the peak or trough of a pivot. By highlighting the body (Open to Close) of the pivot candle, it focuses on the primary area of price consolidation before a reversal occurred.

Settings

Pivots

• Pivot High: Sets the number of bars required to the left and right to confirm a Pivot High.
• Pivot Low: Sets the number of bars required to the left and right to confirm a Pivot Low.

Plots

• Box Size: Determines the horizontal length (in bars) that the order block box will extend from the pivot candle.
• Bullish Box Color: Sets the color and transparency for the boxes created at Pivot Lows.
• Bearish Box Color: Sets the color and transparency for the boxes created at Pivot Highs.

FAQ

How do I use the Pivot Candle Order Blocks?

You can use these zones as high-probability areas for entries or exits. Price returning to a previous pivot candle's body often encounters "leftover" liquidity, leading to a reaction.

Can I change the sensitivity of the detections?

Yes, by adjusting the Pivot High and Pivot Low left/right length settings. Higher values will find more significant, long-term structural points, while lower values will find more frequent, short-term pivots.

How can I access Pivot Candle Order Blocks?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.