FVG + Order Blocks

The FVG + Order Blocks indicator is a specialized technical analysis tool that combines Order Block (OB) detection with automated zone management to help traders identify institutional liquidity areas where price reactions are likely to occur.

Usage

This tool can be used to identify supply and demand zones based on institutional activity. Traders can utilize the detected zones to find high-probability entry or exit points.

• Order Block Detection: The script identifies bullish and bearish order blocks in real-time. Bullish blocks are highlighted when institutional buying is detected, while bearish blocks signify institutional selling pressure.
• Zone Management: To keep the chart clean, the indicator automatically removes "mitigated" order blocks. Mitigation occurs when price returns to the zone, effectively "filling" the orders present there.
• Liquidity Tracking: Users can use the extended boxes to see which levels remain relevant for future price interactions.

Details

The indicator identifies order blocks using a volume pivot calculation. By analyzing volume peaks over a user-defined length, the script pinpoints areas of significant market participation. The tool includes a flexible mitigation logic. Depending on the user's preference, an order block can be considered mitigated (and thus removed) when either the price wick or the bar close enters the zone. This allows for both aggressive and conservative approaches to zone validity.

Settings

Modules

• Show Order Block Module: Toggles the visibility of the order block detection and its visual elements on the chart.

OB • Settings

• Volume Pivot Length: Determines the lookback period for detecting volume peaks used to form order blocks.
• Bullish/Bearish OBs Shown: Sets the maximum number of recent bullish or bearish zones to display simultaneously.
• Colors (BG, Border, Avg): Customizes the background, outline, and midline colors for both bullish and bearish zones.
• Average Line Style/Width: Adjusts the visual appearance of the midline within the order block zones.
• Mitigation Method: Choose between "Wick" or "Close" to determine what price action triggers the removal of a zone.

FAQ

How do I access the FVG + Order Blocks indicator?

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

What is the difference between Wick and Close mitigation?

Wick mitigation is more sensitive, removing a zone as soon as price touches it. Close mitigation requires a candle to close inside the zone, which can be useful for filtered confirmations.

Can I set alerts for specific zones?

Yes, the script includes built-in alerts for the formation of new order blocks and the mitigation of existing ones, allowing you to stay informed without monitoring the chart constantly.