Support Resistance with Order Blocks

The Support Resistance with Order Blocks indicator provides a comprehensive price level detection system that combines pivot-based support and resistance zones with institutional order block analysis. It is designed to help traders identify high-probability reversal and breakout areas by visualizing both retail and institutional liquidity levels on any timeframe.

Usage

The indicator automatically identifies key price levels and displays them as either boxes or clean lines based on user preference.

• Support & Resistance (S/R): Use the green support zones to identify potential buy entries or price floors. Red resistance zones mark areas where selling pressure typically increases. If historical display is enabled, broken levels will persist on the chart, allowing you to identify "S/R flips" where old resistance becomes new support.
• Order Blocks (OB): These zones represent areas of significant institutional buying or selling. Bullish order blocks (green) highlight where major buying occurred, while bearish order blocks (red) highlight significant selling pressure. These are often used as high-probability entry zones during price retracements.
• Breakout Identification: When price breaches an active S/R level, the indicator can label these as "Br S" (broken support) or "Br R" (broken resistance), signaling a potential trend continuation or breakout opportunity.

Details

The script utilizes a sophisticated multi-step detection logic:

• Pivot Detection: Significant price highs and lows are identified using a configurable lookback period. The script automatically adapts this period for higher timeframes (Daily/Weekly) to ensure accuracy across different market structures.
• Order Block Filtering: OBs are detected based on a price momentum calculation (a specific percentage move over a fixed candle window). To maintain chart clarity, the script includes logic to prevent overlapping zones.
• Dynamic Updating: Active levels extend to the current bar in real-time. Once a level is mitigated (price breaks through), the indicator can either remove the zone or mark it as "broken" based on your settings.

Settings

Display Options

• Display Type: Toggle between "Boxes" for detailed zones or "Lines" for a minimalist chart.
• Line Width: Customize the thickness (1–5 pixels) of the S/R and OB lines.

Order Block Options

• Show Order Block: Enable or disable the detection of institutional zones.
• OB Colors: Individual color settings for bullish and bearish order block borders and fills.

Support/Resistance Options

• Show S/R: Toggle the visibility of active support and resistance levels.
• Show Historical S/R: When enabled, broken levels remain visible with specific "Broken" labels.
• Detection Period: Adjust the candle lookback for pivot identification (higher values result in more significant, longer-term levels).
• Max Active Zones: Limits the number of simultaneously displayed levels to prevent chart clutter.

FAQ

How do I interpret a "Broken" level? A broken level indicates that price has successfully moved through a previous zone. These areas often serve as a reference for future price action, as market participants frequently revisit old zones.

Can I use this for scalping? Yes, by lowering the "Detection Period" in the settings, the indicator will respond more quickly to short-term price pivots suitable for lower timeframes.

How 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.