Jasper Working OB Strategy

The Jasper Working OB Strategy indicator automates the identification of institutional order blocks and displacement moves to pinpoint high-probability reversal zones with integrated risk management.

Usage

The Usage section describes how the script can be used to identify trading opportunities based on price action and supply/demand dynamics.

• Zone Identification: The tool automatically plots bullish and bearish boxes representing order blocks. These are identified when a specific displacement sequence occurs, coupled with a Fair Value Gap (FVG).
• Entry Confirmation: A signal is generated when price returns to the identified zone and demonstrates a breakout of the previous bar's high (for longs) or low (for shorts).
• Trade Execution: Upon a valid entry, the indicator displays a "BUY" or "SELL" label along with calculated Entry, Stop Loss (SL), and Take Profit (TP) lines. The strategy defaults to a 1:1 reward-to-risk ratio based on local market structure.
• Session Filtering: The script is hardcoded to look for new setups specifically during the New York morning session (7:00 AM – 9:30 AM EST) to capture high-volume institutional movements.

Details

The script follows a rigorous multi-step validation process to ensure only high-quality institutional zones are highlighted:

1. Displacement and Confirmation: It looks for a specific candle sequence where a candle moves strongly in one direction, followed by a confirming candle and an FVG.
2. Mitigation Logic: An order block is considered active only if price leaves the zone entirely before returning. If price returns and breaches the opposite side of the zone (fully filled), the zone is invalidated.
3. Wick Filtering: The script includes a "double wick" filter to prevent entries during high-volatility, indecisive price action where a single bar sweeps both the previous high and low.
4. Automatic Risk Calculation: Stop losses are placed at the structural low or high of the entry trigger, and targets are projected automatically to maintain a balanced risk profile.

Settings

• Show Bullish OBs: Toggles the visibility of the green bullish demand zones on the chart.
• Show Bearish OBs: Toggles the visibility of the red bearish supply zones on the chart.
• Extend Boxes: Determines the number of bars into the future the order block zones are extended for visual tracking.

FAQ

How do I use the entry signals? Signals appear as "BUY" or "SELL" labels on the chart. When these appear, the script also provides horizontal lines indicating the specific entry price, stop loss, and target levels for that trade.

Why are zones only forming during certain times? The script uses a session filter focused on the New York open (7:00 AM to 9:30 AM EST). This ensures that the identified order blocks are backed by the significant trading volume typically seen during institutional hours.

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.