Volume Orderblock Breakout v3.6

The Volume Orderblock Breakout v3.6 indicator identifies key institutional supply and demand zones based on volume spikes and provides actionable breakout signals with integrated take-profit targets. By tracking significant volume anomalies, the tool highlights "Orderblocks" where major market participants may be active, allowing traders to capitalize on directional momentum after price clears these levels.

Usage

The indicator identifies potential reversal or continuation zones when a volume spike occurs (exceeding a user-defined multiplier of the Volume SMA). An Orderblock (OB) level is drawn at the midpoint of the trigger candle.

• Long Entry: Occurs when price crosses above an active OB level, provided the price is above the trend-filtering EMA and the OB was formed during a bullish regime.
• Short Entry: Occurs when price crosses below an active OB level, provided the price is below the trend-filtering EMA and the OB was formed during a bearish regime.
• Pre-Signals: Small diamonds appear when conditions for a breakout are maturing but not yet fully met (based on volume, proximity to the OB, and trend alignment), serving as an early warning system.
• Take-Profit (TP): When enabled, the script plots a target line based on an ATR multiplier. A "TP Hit" label appears once the price reaches this objective.

Details

The script utilizes a dynamic Volume SMA that adjusts its length based on the timeframe to ensure relevance across different chart resolutions. The Orderblock level is determined by the midpoint of the candle body (or full range, depending on settings) of the high-volume bar. To prevent premature entries, a "Min Bars Hold" setting ensures the OB level is established for a minimum duration before a breakout is considered valid. The "Directional OB" feature further filters signals by ensuring the breakout direction aligns with the market bias at the time the zone was created.

Settings

• Base Volume SMA Length: Sets the lookback period for the volume average used to detect spikes.
• Volume Spike Multiplier: Determines how much higher the current volume must be relative to the average to trigger an Orderblock.
• Use Body (open~close) for OB level: If enabled, the script uses the candle body to calculate the OB midpoint; otherwise, it uses the high/low range.
• EMA Length (Trend Filter): Sets the period for the Exponential Moving Average used to define the overall market trend.
• Min bars after OB before breakout valid: The number of bars that must pass after an OB is formed before a breakout signal can be triggered.
• PreSignal Volume Multiplier: The volume threshold required to trigger a pre-signal diamond.
• PreSignal OB Distance (ATR x): How close price must be to the OB level for a pre-signal to appear.
• Use Directional OB: When enabled, restricts long signals to bullish OBs and short signals to bearish OBs.
• Enable Take-Profit: Toggles the visibility and logic for ATR-based take-profit targets.
• TP (ATR x): Sets the distance for the take-profit target relative to the Average True Range.

FAQ

How do I use the Volume Orderblock Breakout v3.6?

You can look for the "LONG ENTRY" or "SHORT ENTRY" labels which appear after the price breaks out from a high-volume zone in alignment with the EMA trend filter.

What do the diamond icons represent?

The diamonds are pre-signals. They indicate that the market is showing strong volume and trend characteristics near an Orderblock, suggesting a potential breakout may be imminent.

Where can I access this tool?

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