ICT Suspension Blocks

The ICT Suspension Blocks indicator automates the identification of compact inefficiency zones formed when a single candle is suspended between two volume imbalances. This tool helps traders pinpoint potential institutional reaction points where price may revisit and react as support or resistance.

Usage

The indicator scans for specific three-candle sequences where body-to-body gaps (volume imbalances) occur on both sides of the middle candle.

• Bullish Suspension Block: Formed when a sequence of three candles contains two upward gaps, leaving the middle candle "suspended" between them.
• Bearish Suspension Block: Formed when a sequence of three candles contains two downward gaps.

Traders can use these zones as potential entry or target areas. The indicator provides visual cues for retests (triangle markers) and tracks the lifecycle of each zone until it is invalidated by price action. Use the Show Nearest filter to declutter the chart and focus only on the zones closest to the current market price.

Details

In ICT theory, a volume imbalance is a body-to-body inefficiency where the open of a new candle does not overlap with the close of the previous one. When two such imbalances occur back-to-back, the middle area acts as a powerful PD Array. Unlike standard order blocks, this zone is defined from the close of the first candle to the open of the third candle, capturing the precise "suspended" area. The script includes logic to filter out session-opening gaps (Daily/Weekly) to maintain data integrity and provides an option to merge overlapping zones for a cleaner visual representation.

Settings

Suspension Blocks

• Bullish/Bearish: Customize the fill colors for active and historical zones.
• Invalidation Method: Choose between "Wick" (immediate invalidation on touch) or "Close" (requires a candle close through the zone).
• Midline: Toggles a center line within the zone to identify the 50% equilibrium level.
• Zone Labels: Displays labels (SB+/SB-) inside the zones for quick identification.
• Retest Labels: Displays triangle markers when price successfully retests a zone.
• Combine Overlapping Zones: Merges overlapping zones of the same direction into a single unified area.
• Hide Invalidated Zones: When enabled, removes zones from the chart once they are breached.

Filters

• Show Nearest: Limits the number of visible active zones based on their proximity to the current price.
• Minimum Size: Filters out small formations based on a multiple of the Average True Range (ATR).

FAQ

How do I interpret a retest? A retest is marked when price approaches from the correct side, touches the zone with a wick, but fails to invalidate it (closing back outside the zone).

What makes a zone "invalidated"? Depending on your settings, a zone is invalidated when a wick or a candle close passes through the far side of the Suspension Block boundary.

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