Smart Order Blocks [Pro Version]

The Smart Order Blocks [Pro Version] indicator automatically identifies and visualizes institutional order blocks based on pivot highs and lows to highlight key liquidity zones for potential price reversals.

Usage

The Smart Order Blocks [Pro Version] is designed to help traders pinpoint institutional price levels where major market participants often engineer liquidity.

• Bullish Order Blocks: Formed at pivot lows, these zones represent areas where buying pressure originated. Traders often look for long entries when price revisits a fresh Bullish OB in an uptrend.
• Bearish Order Blocks: Formed at pivot highs, these zones represent areas where selling pressure originated. Traders often look for short entries when price revisits a fresh Bearish OB in a downtrend.
• Strength Assessment: The indicator calculates the "strength" of an OB (High, Medium, Low) based on the volatility (ATR) and volume accompanying the move. High-strength blocks often indicate more significant institutional involvement.
• Zone Mitigation: By default, zones are extended until they are "tapped" by price. Once price interacts with a zone, the indicator can visually invalidate it, helping traders focus only on fresh, unmitigated levels.

Details

The indicator utilizes pivot points to identify the candles responsible for significant price shifts. It evaluates the displacement (size of the move) and relative volume at the time of the pivot to categorize the order block's strength. Specifically, if the move size exceeds twice the ATR and volume is above the 20-period SMA, it is classified as "High" strength. The script manages a series of box objects to maintain historical zones and provides real-time updates as price action interacts with these boundaries.

Settings

Pivot Settings

• Source: Determines whether to use candle wicks or bodies for the pivot and OB boundary calculations.
• Pivot High L/R: Adjusts the number of bars to the left and right required to confirm a pivot high.
• Pivot Low L/R: Adjusts the number of bars to the left and right required to confirm a pivot low.

Display Settings

• Extend OB until tapped: If enabled, OB zones will extend forward until price enters the zone.
• Box Width: Sets a fixed horizontal width for OB boxes if the extension setting is disabled.
• Show OB Labels: Toggles the visibility of text labels identifying the OB type.
• Show OB Strength: Displays the calculated strength (High/Medium/Low) on the chart labels.
• Show Only Fresh OBs: When enabled, zones that have been touched by price change color to indicate mitigation.
• Colors: Customizable colors for Bullish, Bearish, and Invalid (tapped) order blocks.

Alert Settings

• Alert when OB is tapped: Enables notifications when price price action interacts with an active OB zone.

FAQ

How do I use the Smart Order Blocks [Pro Version]?

Identify a fresh Bullish or Bearish OB on the chart and wait for a price retest. Combine these zones with market structure shifts or candlestick confirmation patterns for higher probability trade setups.

What is the difference between Wicks and Bodys in the settings?

Selecting "Wicks" uses the absolute high and low of the candles to define the order block zone, while "Bodys" uses the open or close prices, often resulting in tighter zones.

How can I access this indicator?

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