Order Blocks & Breaker Blocks Signals + Alerts

The Order Blocks & Breaker Blocks Signals + Alerts tool identifies key institutional supply and demand zones based on pivot-point price action and volume characteristics. It aims to highlight areas of market reversal or continuation by detecting significant structure breaks and subsequent mitigation.

Usage

The indicator automatically plots Supply and Demand Order Blocks when a high or low pivot is breached. If these zones are subsequently broken by price, they flip roles to become Breaker Blocks (support turning to resistance or vice versa).

• Order Blocks: Use these zones to identify potential entry points for reversals. Demand zones suggest buying opportunities, while Supply zones suggest selling opportunities.
• Breaker Blocks: When an Order Block fails and price closes through it, the zone transforms into a Breaker Block. These are used to trade the "retest" of the failed structure.
• Refinement: Users can toggle between "Aggressive" and "Defensive" refinement modes. Aggressive mode uses wider zones for traders seeking more frequent entries, while Defensive mode provides tighter zones for higher risk-to-reward ratios.

Details

The script utilizes historical price action and pivot analysis to determine market structure.

• Demand Order Block: Formed when price breaks a previous high pivot, indicating bullish momentum originating from that base.
• Supply Order Block: Formed when price breaks a previous low pivot, indicating bearish momentum.
• Mitigation: The indicator tracks when price returns to these zones. You can customize the "Mitigation Level" (Proximal, 50%, or Distal) to define exactly when a zone is considered tested or "filled."

Settings

Global Setting

• Pivot Period of Order Blocks Detector: Sets the lookback period for identifying high and low pivots.
• Order Block Validity Period (Bar): Defines how many bars a zone remains visible before being removed.
• Mitigation Level OB/BB: Determines the specific price point (edge, midpoint, or far end) required to trigger a mitigation event.
• Switching Colors Theme Mode: Adjusts the visual palette for Light or Dark chart themes.

Display Settings

• Show All OB/BB: Toggles between showing all active zones or only the most recent one.
• Demand/Supply Main & Sub Blocks: Individual toggles and color pickers for various types of structure origins (Main vs. Propulsion/BoS).

Order Block Refinement

• Refine Settings: Enable or disable the refinement of specific block types and select the calculation method (Defensive or Aggressive).

Alert

• Alert Mitigation: Toggles for receiving notifications when price hits Demand/Supply OBs or BBs.
• Message Frequency: Controls how often alerts trigger (All, Once Per Bar, or Per Bar Close).
• Show Alert Time by Time Zone: Adjusts the timestamp in alert messages to your local time zone.

FAQ

How do I identify a valid Order Block? A valid Order Block is identified by the indicator when price breaks a major structure point (pivot). The zone is then drawn from the candle that initiated that move.

What is the difference between an Order Block and a Breaker Block? An Order Block is a fresh zone of supply or demand. A Breaker Block is a formerly valid Order Block that has been broken and is now acting as the opposite polarity (support flipped to resistance).

How can I access Order Blocks & Breaker Blocks Signals + Alerts? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.