This exceptional indicator provides you with visual representations of bullish and bearish order blocks or supply and demand zones across multiple timeframes. In simple terms, bullish order blocks are represented by a small red candle followed by a large red candle, while bearish order blocks are depicted as a small green candle followed by a large red candle. Supply and demand zones are drawn by using order blocks.
Features:
Display order blocks from up to three different timeframes.
Customize the maximum number of boxes shown and the colors of the zones.
Choose from three different modes: OB (Order Block), Extended OB, and Supply/Demand.
Mode Descriptions: OB: Includes the body of the candle. Extended OB: Encompasses the body and wick of the candle. Supply/Demand: Covers the body, wick, and half the body of the large candle.
Usage: Ensure that charts 2 and 3 are set to a higher timeframe. For modes 2 and 3, it’s recommended to reduce the maximum number of boxes shown. The zones or boxes are transparent, allowing for overlap. This feature aids in identifying reversal zones or confirmed zones. The more intense the color, the stronger the confirmation. If a green zone overlaps a red zone (or vice versa), it signifies a reversal zone.
Thank you for checking out this indicator!
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Additional Information: Order blocks refer to specific price areas where large market participants, such as institutional traders, have previously placed significant buy or sell orders. These clusters of orders can impact price movement, liquidity, and market sentiment.
Order blocks are a strategic approach to identifying key levels of support and resistance based on the behavior of institutional traders. These key levels are then utilized as entry or exit points for trades.
An order block is an area where there has been a large concentration of limit orders awaiting execution. These blocks are identified on a chart by observing previous price action and pinpointing areas where the price experienced significant movement or abrupt changes in direction.
Order blocks are used in the following popular trading philosophies:
Fat major update. Added 2 normal breakout and 2 false breakout patterns Added color bouncing (the more bounces on a zone happen, the stronger the color will get!!!) Changed license Added adjustable label colors Updated default values And the list goes on and on and on
On 50 upvotes on this comment, I'll try to add a confluence filter which will allow to only show the zones with stronger confirmation. I am open for ideas on identifying the confluence. Just reply on this comment. Some ideas I have already are RSI, overlapping zones (from multiple timeframes), psychological levels, ATR levels (maybe too unstable), Camarilla PP levels, normal horizontal support and resistance lines and Fibonacci levels. Would also help to know which confirmation if my ideas you'd prefer.
simwai
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Correction: Ensure that charts 2 and 3 are set to a higher timeframe. -> Set all resolutions to current or higher timeframe.