OB Sweeps Reversal

The OB Sweeps Reversal indicator identifies and dynamically tracks bullish and bearish order blocks to pinpoint key zones where institutional activity is most prevalent. By classifying these zones based on their mitigation status and combining them with liquidity sweep detection, the tool provides a comprehensive framework for identifying high-precision reversal setups.

Usage

The Usage section focuses on interpreting the order block zones and the integrated signal logic. Traders can use the zones as standalone support and resistance or wait for confirmed entry signals.

• Order Block Interaction: A bounce off a bullish OB suggests a potential long setup, while a rejection from a bearish OB suggests a potential short.
• Liquidity Sweeps: The indicator detects when price sweeps recent highs or lows. A sweep followed by a snapback into an active OB generates a reversal entry signal.
• Mitigation Tracking: Zones change color and label status (Unmitigated, Mitigating, or Mitigated) based on price action, allowing users to see which levels remain valid.
• Risk Management: When enabled, the script plots ATR-based stop-loss and take-profit levels automatically upon a signal trigger.

Details

The script utilizes multi-timeframe (HTF) analysis to identify significant order blocks. An order block is defined by a specific breakout candle that exceeds a volume threshold (1.5x the SMA20 by default) and breaks previous structural highs or lows.

The "Sweep" logic monitors the current timeframe for price spikes beyond a percentage threshold of recent extremes. This is often used to identify "traps" or liquidity grabs before a reversal. The tool also includes a trend filter (200 EMA) and a momentum filter (candle direction) to ensure signals align with the prevailing market environment.

Settings

Order Block Settings

• HTF for Order Block: Sets the timeframe used to calculate the primary order blocks.
• Sweep Threshold %: The percentage distance price must travel beyond a high/low to be considered a sweep.
• HTF OB Lookback Bars: The number of bars checked to determine structural breakouts and sweeps.
• Show Last N OBs: Limits the number of displayed order blocks to keep the chart clean.
• OB Box Extension Bars: Determines how far into the future unmitigated zones extend.

Calculation & Visuals

• ATR Period: The lookback period for Average True Range used in stop/target calculations.
• Draw Stop/Target Lines: Toggles the visibility of risk management levels.
• Show Entry Labels: Toggles the contextual labels that appear on entry signals.
• OB Volume Threshold Multiplier: The required volume for an OB candle relative to its average.
• Minimum OB Size %: Filters out small candles to ensure only significant institutional moves are captured.

Filters

• FILTER: Use Trend Filter (200 EMA): Restricts signals to only those following the 200-period Exponential Moving Average trend.
• FILTER: Use Entry Bar Momentum Filter: Requires the entry candle (or previous candle) to close in the direction of the trade.

FAQ

How do I access the OB Sweeps Reversal?

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

What timeframes are best for this tool?

While it works on any timeframe, it is recommended for 15m to 4H charts to capture meaningful market structure shifts.

Why are there no signals appearing on my chart?

This tool is designed for precision and low-frequency setups. If filters like the 200 EMA or Momentum are enabled, many potential setups will be filtered out to ensure only high-confluence trades are highlighted.