Pure Price Action Order & Breaker Blocks

The Pure Price Action Order & Breaker Blocks indicator is an evolved version of the popular Order-Blocks-Breaker-Blocks script by LuxAlgo. This trading indicator stands out by focusing solely on price action patterns to detect order and breaker blocks without any predefined input lengths, providing traders a more dynamic and objective view of market conditions.

How Does the Pure Price Action Order & Breaker Blocks Indicator Work?

An order block signifies an area on the chart where significant order accumulation or distribution occurs, often following a strong price movement and consolidation. Traders utilize these blocks to mark potential support and resistance zones. The Pure Price Action indicator identifies these blocks and evolves them into breaker blocks when market conditions invalidate them. This seamless transition helps traders spot new potential trading opportunities.

A breaker block is confirmed when price comes back to mitigate an order block. This reactive nature of the indicator means that as prices interact with these areas, traders can anticipate possible retracement or continuation setups.

Advanced Features of the Indicator

A standout feature of this indicator is the "Historical Polarity Changes" labels, which highlight past effective trade setups. For the best results, these labels work optimally during replay mode, although users should be aware that such labels might repaint.

Pure Price Action Methodology

The magic of this indicator lies in its reliance on pure price action for swing point detection. It removes the guesswork and user-defined settings, allowing traders to focus on real-time market dynamics.

Swing Points Detection

The process begins by identifying short-term swing points:

• Short-term swing high (STH): a price peak surrounded by lower highs.
• Short-term swing low: a price trough surrounded by higher lows.

Further refinement occurs with intermediate and long-term swing points using earlier detected swings. This hierarchy ensures a layered and recursive approach to market analysis, enhancing its accuracy.

Customizable Settings

The indicator packs several settings to tailor your analysis:

• Detection: Set the market structure used for swing point detection.
• Show Last Bullish OB: Displays the last few bullish order/breaker blocks.
• Show Last Bearish OB: Displays the last few bearish order/breaker blocks.
• Use Candle Body: Opt to use just candle bodies for defining order block areas, rather than the full candle.

Visualization Style

• Show Historical Polarity Changes: Enables visualization labels marking swing high/lows within breaker blocks for insightful feedback on market conditions.

Related Scripts by LuxAlgo

• Pure-Price-Action-Structures.
• Order-Blocks-Breaker-Blocks.

FAQs

How to access the Pure Price Action Order & Breaker Blocks indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What is the primary benefit of using the Pure Price Action Order & Breaker Blocks indicator over traditional scripts? The primary benefit is its reliance on pure price action without the need for length definitions or user inputs, making it adaptable and objective in various market conditions.