StO Price Action - Orderblock

The StO Price Action - Orderblock indicator identifies and visualizes bullish and bearish Order Blocks based on pivot-based market structure. It provides traders with a clear view of significant price zones where institutional buying or selling pressure originated, helping to pinpoint areas of interest for potential reversals or continuations.

Usage

The indicator can be used to identify key supply and demand zones across multiple timeframes. By visualizing these blocks, traders can look for price interactions such as "taps" or "mitigations" to confirm trade setups. The tool highlights active zones and can optionally keep historical (mitigated) zones on the chart for context.

• Bullish Order Blocks: Formed from down candles before an impulsive move upward.
• Bearish Order Blocks: Formed from up candles before an impulsive move downward.
• Consequent Encroachment (CE): Use the 50% level of the block as a secondary level of support or resistance within the zone.
• Filters: Apply ATR displacement or body percentage filters to isolate high-probability blocks and reduce market noise.

Details

Order Blocks are detected using a pivot-based logic where the high or low of a specific candle is identified as a point of origin for a market shift.

• Non-Repainting: Once an Order Block is identified and confirmed by the lookback period, it remains static.
• Multi-Timeframe (MTF): The indicator can process data from higher timeframes and display those zones on your current chart.
• Killzones: Integration with session timings allows users to filter for Order Blocks that only form during specific liquid sessions like London or New York.

Settings

Orderblock

• TF: Sets the timeframe used for Order Block detection.
• Colors (Bullish/Bearish): Customizes the visual appearance of active zones.
• Fill: Toggles the background fill for the Order Block boxes.
• Mitigated OBs: When enabled, keeps past Order Blocks visible as historical context after they have been breached.
• Highlight on Touch: Briefly changes the color of the zone when price first interacts with it.
• Consequent Encroachment: Displays the 50% midline of the identified Order Block.

Filter

• Pivot LB: Adjusts the pivot lookback to control the sensitivity of detection (higher values result in fewer, stronger blocks).
• Max Pips: Limits the maximum vertical height allowed for a zone to be considered valid.
• Min Body %: Filters for candles with a minimum body-to-wick ratio.
• Filter by ATR: Requires a minimum displacement (move away from the zone) relative to the ATR.
• Trend EMA: Only displays Order Blocks that align with the direction of a specified Exponential Moving Average.

Killzone

• OB Starts In Killzone: Filters zones so only those originating during specific sessions (Asia, London, NY) are displayed.

FAQ

How do I interpret a mitigated Order Block? A mitigated Order Block is one that has been revisited by price. While no longer "fresh," these areas often serve as historical support/resistance or context for overall market structure.

What is Consequent Encroachment? Consequent Encroachment refers to the 50% level of a candle or zone. In price action trading, this level is often viewed as a significant magnet or a point where price may find a reaction within the larger Order Block.

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