Description
TradingView script published by the talented wugalmo
The purpose of this experimental Indicator is to help to identify Institutional Order Blocks.
Often these Order Blocks can be observed at the beginning of a strong move, but there is a significant probability that these price levels will be revisited at a later point in time again. Therefore these are interesting levels to place limit orders (Buy Orders for Bullish OB / Sell Orders for Bearish OB).
A Bullish Order block is defined as the last down candle before a sequence of up candles. (Relevant price range Open
to Low
is marked)
A Bearish Order Block is defined as the last up candle before a sequence of down candles. (Relevant price range Open
to High
is marked)
In the settings, the number of required sequential candles can be adjusted.
Furthermore, a %-threshold can be entered. It defines which minimum %-change the sequential move needs to achieve in order to identify a relevant Order Block. If this is used, it makes sense to adjust it to the timeframe which is analyzed as of course higher timeframes usually produce bigger moves.
Channels for the last Bullish / Bearish Block can be shown/hidden.
In addition to the upper/lower limits of each Order Block, also the equilibrium (average value) is marked as this is an interesting area for price interaction.
Please note that you can optionally display a Docu
-Label which shows some information about the indicator as a tooltip.
Remark:
As the identification of a relevant Order Block is only possible after the required number of subsequent candles has closed, this indicator repaints
by definition. But I do not see this as an issue as the relevancy of the Order Blocks and the interaction of price with these levels usually only happens longer in the future anyway.
Script URL
https://www.tradingview.com/script/R8g2YHdg-Order-Block-Finder-Experimental/
