Smart Money Setup 01 Double Order Blocks Confirmation

The Smart Money Setup 01 Double Order Blocks Confirmation indicator is a technical analysis tool designed to identify high-probability trading setups based on the Smart Money Concepts (SMC) methodology, specifically focusing on the confirmation of two consecutive order blocks following a Breakout of Structure (BoS).

Usage

The indicator automates the detection of BoS events and the subsequent formation of order blocks. To use the tool effectively, traders should monitor the chart for the appearance of the "Double Order Block" setup.

• Bullish Setup: Occurs when a primary BoS forms an initial bullish order block, followed by a second BoS and a second order block before the price returns to the first one. This double confirmation indicates a strong upward trend.
• Bearish Setup: Occurs when a primary BoS forms an initial bearish order block, followed by a second BoS and a second order block before the price returns to the first one. This suggests strong downward momentum.

Traders are encouraged to adjust the settings based on their specific trading style; higher timeframes and larger pivot periods generally yield more significant structural confirmations.

Details

The script executes based on Pivot High and Pivot Low logic to determine market structure. By identifying "Higher Highs" (HH), "Higher Lows" (HL), "Lower Highs" (LH), and "Lower Lows" (LL), the indicator tracks structural shifts. A "Breakout of Structure" (BoS) is identified when price convincingly breaks these pivot points, leading to the creation of an order block (the zone of supply or demand responsible for the break). The "Double Order Block" logic specifically looks for a sequence where the trend is reinforced by a secondary break before the initial zone is mitigated, signaling institutional intent and trend dominance.

Settings

• Pivot Period: Determines the lookback period for calculating pivot highs and lows used to define market structure. A smaller value makes the indicator more sensitive to minor price fluctuations, while a larger value filters for major structural shifts.

FAQ

How do I interpret a "Double Order Block" signal?

A Double Order Block signal indicates that the market has broken structure twice in the same direction without retracing to the first zone, suggesting a high-conviction trend supported by institutional capital.

Which timeframes are best for this indicator?

While it works on all timeframes, the signals are often more reliable on higher timeframes (e.g., 1H, 4H, Daily) where market structure is more clearly defined and less susceptible to "noise."

How can I access Smart Money Setup 01 Double Order Blocks Confirmation?

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