Order Blocks W/ Realtime Fibs

The Order Blocks W/ Realtime Fibs indicator identifies institutional supply and demand zones combined with dynamic Fibonacci retracement levels to highlight high-probability reversal areas.

Usage

The Usage section describes how the script can be used to identify institutional footprints and potential entry zones.

The tool automatically identifies order blocks based on consecutive price action and specific percentage moves. Once an order block is confirmed, the script projects Fibonacci retracement levels from the block's origin to the current trend extreme. These levels update in real-time as price makes new highs (in a bullish move) or new lows (in a bearish move), allowing traders to visualize deep-value entry zones before the trend continues.

Strategic Application

• Entry Zones: Traders can look for price to retrace into the "Golden Pocket" (.618 - .786) or the Order Block itself for high-concurrency entries.
• Trend Continuation: The real-time Fibonacci updates help traders stay aligned with the current trend until a specific retracement target is hit.
• Mitigation Tracking: The indicator tracks when zones are "mitigated" (tested by price wicks or closes), helping traders identify which zones remain valid for future trades.

Details

Order blocks represent areas where institutional participants have potentially placed significant buy or sell orders, often characterized by aggressive consecutive candles. This script identifies these zones using a user-defined threshold for consecutive bars and minimum percentage price movement.

The Fibonacci component is dynamic; unlike static Fibonacci tools, this script recalculates the retracement levels as the trend expands. Users can choose to stop this recalculation once a specific retracement level (e.g., the 0.5 or 0.618 level) has been reached, signaling that the anticipated "pullback" has occurred.

Settings

Order Block Settings

• Consecutive Bars Required: The number of bars required after a move to validate an order block.
• Percent Gain Required: The minimum percentage price movement required to confirm a valid block.
• Require Opposite Order Block: If enabled, the script requires a bearish block to appear before another bullish block can be plotted (and vice versa).
• Mitigation Type: Determines if a zone is mitigated by price "Wicks" or "Close".
• Irrelevant Order Block: Method to filter old blocks based on "Length" (time) or "Distance" (price %).
• Max Ob Length or Distance: The threshold at which a block is considered too old or too far to be relevant.

Order Block Display Settings

• Show Order Blocks: Toggles the visibility of supply and demand zones.
• Remove Old or Irrelevant Order Blocks: If enabled, old zones are removed from the chart to maintain clarity.
• Bullish/Bearish Color: Customizes the visual appearance of the zones.

Fibs

• Show Fibs: Toggles the visibility of Fibonacci levels.
• Stop Fib Recalculation After Retracement: Stops updating the 0 and 1 levels once the price hits the user-defined retracement target.
• Retracement Level: Selects the specific level (OB, .50, .618, .786) that triggers the stop in recalculation.
• Fib Level Visibility & Colors: Individual toggles and color pickers for levels .236, .382, .50, .618, .786, and the 0/1 anchors.

FAQ

How does the real-time Fibonacci feature work? The Fibonacci levels are anchored to the order block and the current trend extreme. If the price continues to move in the trend's direction without hitting the retracement target, the levels will expand automatically.

What is the "Mitigation Type"? This setting defines when an order block is no longer considered "fresh." If set to "Wicks," any price touch of the zone invalidates it; if set to "Close," price must close inside the zone to mitigate it.

How do I get access to Order Blocks W/ Realtime Fibs? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.