Order Block Detector
By LuxAlgoDec 6, 2022
Order Block Detector finds the footprints that phased, large-scale order execution leaves on lower timeframes, plotting order blocks around confirmed volume peaks. Because every zone is anchored to a volume pivot rather than a visual guess, the blocks mark prices where orders demonstrably concentrated, natural support and resistance for entries and exits.
Zone construction follows a deliberate take on order block anatomy: bullish blocks, detected in uptrends, span the price low to the median; bearish blocks, detected in downtrends, span the median to the high, with an average level plotted through each zone. Mitigated blocks are hidden automatically so only live zones remain.
How to Trade the Order Block Detector?
- Bullish order block below price: treat the zone as support and watch for longs on a return into it.
- Bearish order block above price: a resistance zone for shorts or profit-taking.
- Average level: the median of each block acts as its balance point. Reactions there carry extra weight.
- Alerts: notifications are available for the creation and mitigation of both bullish and bearish blocks.
Keep in mind that detection is retrospective: a volume peak only confirms after Volume Pivot Length bars, so blocks are drawn in hindsight by design.
Order Block Detector Settings
- Volume Pivot Length: lookback of the volume pivot detection; lower values confirm peaks sooner and surface more order blocks.
- Bullish OB: how many recent unmitigated bullish blocks stay visible.
- Bearish OB: the same display cap for bearish blocks.
- Mitigation Methods: "Wick" retires a block when a wick trades beyond it; "Close" waits for a close beyond the zone.
- Average Line Style & Width: appearance of the average level.
Frequently Asked Questions
Free on Vela
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- Up to 500 strategy alerts, with webhook automation
- Up to 10× the chart history of Free
- Orderflow lookback up to full history
- Up to 100,000 monthly credits for Quant to customize it
- Futures data alongside crypto, stocks, forex and commodities
Also works on
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