Orders Blocks [TK]

The Orders Blocks [TK] indicator identifies and highlights valid order block zones on the 1-minute chart, as well as higher timeframe zones from the daily and hourly intervals. By detecting engulfing candle patterns, the tool projects potential support and resistance zones that dynamically react to price action, ensuring only relevant, uncrossed zones remain visible on the chart.

Usage

The tool automatically draws boxes representing bullish and bearish order blocks. A bullish order block is identified when a bullish candle engulfs a previous bearish candle, while a bearish order block is identified when a bearish candle engulfs a previous bullish candle.

• Zone Persistence: Once created, a zone stretches to the current bar.
• Dynamic Mitigation: If the price enters an order block zone without fully crossing it, the zone is reduced (mitigated) to the new price extreme.
• Removal Logic: If the price completely crosses an order block zone, the zone is considered "broken" and is automatically deleted from the chart.
• Multi-Timeframe Analysis: Users can overlay Daily (1D) and Hourly (1H) order blocks onto their lower timeframe charts to identify areas of significant institutional interest.

Details

The script utilizes a matrix-based system to track and manage active order blocks. It focuses on the most recent 5,000 bars to maintain performance. The core logic relies on engulfing price action as the primary signal for institutional "orders" being placed. The mitigation logic ensures that users can see exactly how much of a supply or demand zone remains "untouched" by subsequent price action.

Settings

General

• Bull Order Block colors: Customizes the border and background colors for bullish zones.
• Bear Order Block colors: Customizes the border and background colors for bearish zones.

One Day Timeframe

• Always draw the Order Block from the 1 Day timeframe?: Toggles the visibility of daily order blocks on the chart.
• 1D Colors: Independent color settings for daily bullish and bearish zones.
• Write the name of the order block inside it?: Displays a label identifying the daily zone.

One Hour Timeframe

• Always draw the Order Block from the 1 Hour timeframe?: Toggles the visibility of hourly order blocks on the chart.
• 1h Colors: Independent color settings for hourly bullish and bearish zones.
• Write the name of the order block inside it?: Displays a label identifying the hourly zone.

FAQ

How do I interpret the shrinking boxes?
The boxes shrink when price penetrates them partially. This represents "mitigation," where some of the orders within that block have been filled, but the entire zone has not yet been invalidated.

Why did an order block disappear?
Order blocks are deleted if the price completely breaches the zone (invalidating the area) or if the block becomes older than 5,000 bars.

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