Internal Market Structure + Order Blocks

The Internal Market Structure + Order Blocks indicator maps real-time structural shifts and institutional points of interest to help traders identify potential trend reversals and supply/demand zones.

Usage

The tool is designed to provide visual confirmation of market direction and key price levels. It can be used to identify high-probability entry or exit zones by combining internal shifts with the formation of order blocks.

• Bullish & Bearish Order Blocks: Represented by green and red shaded boxes, these zones are formed when price action creates a specific engulfing condition. These boxes extend into the future to highlight potential support or resistance levels.
• Internal Structure Shifts: Indicated by small neutral-colored (black/white) triangles. These signals represent early changes in market momentum before a major trend shift occurs, serving as a lead indicator for price action traders.
• Engulfing Breakouts: Marked with colored triangles, these identify when price breaks a previous opposing structure, confirming a shift in directional intent.
• Mitigation Logic: By default, order blocks are removed once price revisits the zone (mitigation), ensuring the chart remains focused on fresh, unmitigated levels.

Details

The indicator calculates order blocks based on the last candle of the opposing move prior to an engulfing breakout. For example, a bullish order block is identified at the last bearish candle's range before a bullish breakout. Internal shifts are calculated by monitoring consecutive candle sequences and price closes relative to the opening of the initial candle in a sequence. This provides a more granular view of market structure compared to standard swing high/low analysis.

Settings

Order Blocks

• Show Bullish Order Blocks (Green): Toggles the visibility of bullish institutional zones.
• Show Bearish Order Blocks (Red): Toggles the visibility of bearish institutional zones.
• Order Block Extension (Bars): Determines how many bars into the future the order block box will extend.
• Delete Mitigated Boxes: When enabled, automatically removes order blocks once price enters the zone, keeping the chart clean.

FAQ

How do I use the internal structure shifts?

Internal shifts serve as early warnings. When a neutral triangle appears, it suggests the immediate momentum is shifting, which can be used to trail stops or prepare for a potential order block formation.

What causes an order block to disappear?

If "Delete Mitigated Boxes" is enabled, the box will disappear once price touches it. Additionally, if price breaks through the opposite side of the order block (invalidating the zone), the box will be removed.

How can I access Internal Market Structure + Order Blocks?

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