Order-Block Detector ICT/SMT + FVG + Signals

The Order-Block Detector ICT/SMT + FVG + Signals indicator identifies institutional supply and demand zones alongside market inefficiencies to highlight potential reversal and continuation areas.

Usage

This tool can be used to identify key areas where institutional orders are clustered (Order Blocks) or where price has moved too rapidly, leaving a gap (Fair Value Gaps).

• Order Blocks (OB): Bullish OBs are identified when a down candle is followed by a significant move higher, while Bearish OBs are identified when an up candle is followed by a move lower. These act as zones of support and resistance.
• Fair Value Gaps (FVG): These represent imbalances in price action. The indicator highlights these gaps, which often act as magnets for price to "fill" before continuing its primary trend.
• Signals: The indicator generates Buy and Sell labels when price returns to a zone and shows a specific reaction. The "Min Dist" parameters allow you to filter for signals that occur after a minimum number of candles have passed since the zone's creation, ensuring the pullback is meaningful.

Details

The script tracks multiple historical zones using box objects and extends them until they are mitigated (hit by price).

• Mitigation Logic: A bullish zone is considered mitigated and removed when price drops below its top boundary. Conversely, a bearish zone is removed when price rises above its bottom boundary.
• Signal Logic: Signals are triggered when price closes back across a zone boundary in the expected direction after the minimum distance requirement is met. The script also includes an option to use Heikin-Ashi data for signal smoothing.

Settings

Display

• Time-Frame Order-Block: Allows you to detect zones from a different timeframe than the current chart.
• Line width Liquidated: Sets the thickness of the dashed lines that appear when a zone is mitigated.
• Transparency: Adjusts the opacity of the zone boxes.
• Color Bull/Bear: Customizes the colors for bullish and bearish Order Blocks.
• Color FVG Bull/Bear: Customizes the colors for bullish and bearish Fair Value Gaps.
• Show Order-Blocks/FVG: Toggles the visibility of the respective zones.
• Show Signals: Toggles the visibility of entry labels.

Signals

• Min dist: The minimum number of bars that must pass before an Order Block pullback can trigger a signal.
• Min dist FVG: The minimum number of bars that must pass before an FVG pullback can trigger a signal.
• Use Heikin-Ashi: When enabled, the indicator uses Heikin-Ashi closing prices to confirm signal entries.

FAQ

How do I interpret the dashed lines?

The dashed lines indicate where a previous Order Block or Fair Value Gap was located before it was mitigated by price action.

What is the difference between an OB and an FVG signal?

An OB signal triggers when price interacts with a supply/demand zone, whereas an FVG signal triggers when price returns to fill a market imbalance.

How do I get access to the Order-Block Detector?

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