🔵Introduction
Order Block and Breaker Block, are powerful tools in technical analysis. By understanding these concepts, traders can enhance their ability to predict potential price reversals and continuations, leading to more effective trading strategies.
Using historical price action, volume analysis, and candlestick patterns, traders can identify key areas where institutional activities influence market movements.
🟣Demand Order Block and Supply Breaker Block
Demand Order Block: A Demand Order Block is formed when the price succeeds in breaking the previous high pivot.
Supply Breaker Block: A Supply Breaker Block is formed when the price succeeds in breaking the Demand Order Block. As a result, the Order Block changes its role and turns from the role of price support to resistance.
🟣Supply Order Block and Demand Breaker Block
Supply Order Block: A Supply Order Block is formed when the price succeeds in breaking the previous low pivot.
Demand Breaker Block: A Demand Breaker Block is formed when the price succeeds in breaking the Supply Order Block. As a result, the Order Block changes its role and turns from the role of price resistance to support.
🔵How to Use
🟣Order Blocks (Supply and Demand)
Order blocks are zones where the likelihood of a price reversal is higher. In demand zones, buying opportunities arise, while in supply zones, selling opportunities can be explored.
The "Refinement" feature allows you to adjust the width of the order block to fit your trading strategy. There are two modes in the "Order Block Refine" feature: "Aggressive" and "Defensive." The primary difference between these modes is the width of the order block.
For risk-averse traders, the "Defensive" mode is ideal as it offers a lower loss limit and a higher reward-to-risk ratio.
Conversely, for traders who are willing to take more risks, the "Aggressive" mode is more suitable. This mode, with its wider order block width, caters to those who prefer entering trades at higher prices.
🟣Breaker Blocks (Supply and Demand)
Trading based on breaker blocks is the same as order blocks and the price in these zones is likely to be reversed.
🔵Setting
🟣Global Setting
Pivot Period of Order Blocks Detector: Enter the desired pivot period to identify the Order Block.
Order Block Validity Period (Bar): You can specify the maximum time the Order Block remains valid based on the number of candles from the origin.
Mitigation Level Order Block: Determining the basic level of a Order Block. When the price hits the basic level, the Order Block due to mitigation.
Mitigation Level Breaker Block: Determining the basic level of a Breaker Block. When the price hits the basic level, the Breaker Block due to mitigation.
Switching Colors Theme Mode: Three modes "Off", "Light" and "Dark" are included in this parameter. "Light" mode is for color adjustment for use in "Light Mode".
"Dark" mode is for color adjustment for use in "Dark Mode" and "Off" mode turns off the color adjustment function and the input color to the function is the same as the output color.
🟣Order Block Display
Show All Order Block: If it is turned off, only the last Order Block will be displayed.
Demand Main Order Block: Show or not show and specify color.
Demand Sub (Propulsion & BoS Origin) Order Block: Show or not show and specify color.
Supply Main Order Block: Show or not show and specify color.
Supply Sub (Propulsion & BoS Origin) Order Block: Show or not show and specify color.
🟣Breaker Block Display
Show All Breaker Block: If it is turned off, only the last Breaker Block will be displayed.
Demand Main Breaker Block: Show or not show and specify color.
Demand Sub (Propulsion & BoS Origin) Breaker Block: Show or not show and specify color.
Supply Main Breaker Block: Show or not show and specify color.
Supply Sub (Propulsion & BoS Origin) Breaker Block: Show or not show and specify color.
🟣Order Block Refinement
Refine Order Blocks: Enable or disable the refinement feature. Mode selection.
🟣Alert
Alert Name: The name of the alert you receive.
Alert Demand OB Mitigation:
On / Off
Alert Demand BB Mitigation:
On / Off
Alert Supply OB Mitigation:
On / Off
Alert Supply BB Mitigation:
On / Off
Message Frequency:
This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone:
The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
Display More Info:
Displays information about the price range of the order blocks (Zone Price) and the date, hour, and minute under "Display More Info".
If you do not want this information to appear in the received message along with the alert, you should set it to "Off".
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules.You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
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![Order Blocks & Breaker Blocks [TradingFinder] Signals + Alerts — Indicator by TFlab (2024)](data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mP8/h8AAvMB+NzmkbcAAAAASUVORK5CYII=)