Order Blocks Finder Major OB | Supply and Demand

The Order Blocks Finder indicator identifies major accumulation points and primary supply/demand zones that act as significant sources of market momentum. By filtering out noise in range-bound or channeling markets, it highlights high-probability entry and exit points based on market structure breaks like Break of Structure (BOS) and Change of Character (CHoCH).

Usage

The tool plots active order blocks on the chart, extending them as boxes until the price mitigates the zone.

• Bullish Order Blocks (Green Boxes): These represent demand zones (OB+) where buying pressure is anticipated. Traders typically look for long entries when price retraces to these levels.
• Bearish Order Blocks (Red Boxes): These represent supply zones (OB-) where selling pressure is expected. These act as potential short entry or exit points.
• Entry Confirmation: It is recommended to wait for price action confirmation, such as a pin bar or divergence, once the price reaches a zone. A breakout through a zone with a strong candle (spike) often invalidates the level.

Details

The script focuses on "Major" Order Blocks to prevent chart clutter. It uses a logic that ties OB identification to structure breaks (BOS/CHOCH/MSS). This ensures that only blocks responsible for a shift in market trend or a significant expansion are displayed. The indicator also includes an optional error correction algorithm to "refine" these zones, narrowing them down from the standard high-to-low range to more precise institutional footprints.

Settings

• Order Block Setting:
  • Order Block Refine: When 'On', the tool uses an error correction algorithm to detect the optimal range. When 'Off', zones use the standard candle length.
  • Refine Type: 'Defensive' minimizes the range for a better reward-to-risk ratio. 'Aggressive' considers a larger range to minimize the chance of missing a trade (stop loss safety), though it reduces the reward-to-risk ratio.
• Major Levels:
  • Show High/Low Level: Toggles the visibility of major structural swing points on the chart.
• Support and Resistance:
  • Show Last Support/Resistance: Displays the most recent structural horizontal levels.
• Color Setting: Allows customization of the Supply and Demand box colors.
• Alert: Configure notification settings, including custom messages for long and short signals.

FAQ

How do I interpret a zone being broken? If a price candle closes significantly past the zone or moves through it with high volatility (spike) during news or session opens, the zone is considered invalid and its credibility decreases.

Which timeframes and sessions are best? The indicator is optimized for M1, M5, M15, H1, and H4 timeframes and performs most effectively during the London, Tokyo, and Sydney sessions.

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