# Order Blocks

{% embed url="<https://www.youtube.com/watch?index=2&list=PLoAyPcCp2RYF0SVieXmszdoX0euI1ZwKz&v=9C8-9fo8skk>" %}

<mark style="color:$info;">**Order Blocks**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">are specific price zones where significant buying or selling activity has previously occurred, typically initiated by institutional traders or large market participants.</mark>&#x20;

<mark style="color:$info;">These blocks represent areas of high interest, where large orders have been placed, leading to substantial shifts in market direction.</mark>&#x20;

<mark style="color:$info;">Traders use them to anticipate price reversals or continuations, as they mark areas of potential buying (demand order blocks) or selling (supply order blocks) pressure.</mark>

***

### Volume ratio bars

<mark style="color:$info;">Each order block displays two bars that represent the percentage breakdown of bullish and bearish volume within that block:</mark>

Bearish Volume Ba&#x72;**:**&#x20;

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FrJ0DvJ4srCMYhBPxnGm9%2Fimage.png?alt=media&#x26;token=29256dae-9f3a-483e-8cdf-db4783cb2407" alt=""><figcaption><p><mark style="color:red;"><strong>Bearish Volume</strong></mark> <mark style="color:red;"><strong>Bar</strong></mark></p></figcaption></figure>

<mark style="color:$info;">This bar indicates the percentage of volume that is bearish within the order block.</mark>&#x20;

<mark style="color:$info;">A high percentage here suggests that a significant portion of selling activity occurred at this level, reinforcing the bearish sentiment in the order block.</mark>&#x20;

<mark style="color:$info;">This could indicate strong resistance if the price revisits this zone, as sellers previously dominated this level.</mark>

Bullish Volume Ba&#x72;**:**&#x20;

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FXhEdtyExztvXE8srduts%2Fimage.png?alt=media&#x26;token=5a147f13-b090-4d80-9704-eea758fb4f4f" alt=""><figcaption><p><mark style="color:green;"><strong>Bullish Volume</strong></mark> <mark style="color:green;"><strong>Bar</strong></mark></p></figcaption></figure>

<mark style="color:$info;">This bar shows the percentage of volume that is bullish within the order block.</mark>&#x20;

<mark style="color:$info;">A high percentage of bullish volume suggests strong buying interest at this level, indicating potential support if the price revisits this area.</mark>&#x20;

<mark style="color:$info;">Buyers were previously active here, which could lead to a reaction if the market approaches this level again.</mark>

<mark style="color:$info;">In practical terms, these volume bars help traders assess the strength of the order block:</mark>

* <mark style="color:$info;">**High Bearish Volume in a Sell Block**</mark><mark style="color:$info;">: Strengthens the potential resistance at that level.</mark>
* <mark style="color:$info;">**High Bullish Volume in a Buy Block**</mark><mark style="color:$info;">: Strengthens the potential support at that level.</mark>

<mark style="color:$info;">This data allows traders to understand where significant buying or selling pressure has taken place and to anticipate potential market reactions when price re-enters these zones.</mark>

### Rating Bar

<mark style="color:$info;">It measures how strongly price reacted to the order block by combining:</mark>

* <mark style="color:$info;">The</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**volume traded**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">during the reaction move.</mark>
* <mark style="color:$info;">The</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**price displacement**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">(how far price moved away from the block).</mark>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FG83ulCFhL5phujSwtDtl%2Fimage.png?alt=media&#x26;token=44e9c4d4-b705-43e9-bf09-6faafe6460db" alt=""><figcaption></figcaption></figure>

<mark style="color:$info;">The percentage value shown on the bar represents the strength of that reaction.</mark>

* <mark style="color:$info;">A higher percentage means the order block created a strong, high-volume move.</mark>
* <mark style="color:$info;">A lower percentage means the reaction was weaker or lacked conviction.</mark>

<mark style="color:$info;">This makes it easier to distinguish between order blocks that generated only a small bounce and those that caused a decisive move supported by strong volume.</mark>

### Total volume and delta volume

**Total Volume with Percentage**:\ <mark style="color:$info;">Each order block shows the total trading volume within the block, along with the percentage this volume represents relative to all identified order blocks.</mark>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FFYVCiM7BJmMK9rd5Dmn9%2Fimage.png?alt=media&#x26;token=55751b9d-798d-49a8-a942-e6544f776c3e" alt=""><figcaption><p><strong>Total Volume</strong></p></figcaption></figure>

**Delta Volume**:\ <mark style="color:$info;">Delta volume measures the difference between buy and sell volume within the block. If the delta is positive (buy volume is higher than sell volume), it suggests bullish sentiment within the block, indicating potential support.</mark>&#x20;

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FC6E62a4v5x3JD7TWNtxL%2Fimage.png?alt=media&#x26;token=397e10cc-20d6-448e-bcd2-c69f389121dc" alt=""><figcaption><p><strong>Delta Volume</strong></p></figcaption></figure>

### Categorization&#x20;

<mark style="color:$info;">Based on Total volume and delta volume order blocks are categorized into High, Balanced and Strong blocks for easy identification of significant levels</mark>&#x20;

<div data-with-frame="true"><figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FB7VTkRPYND3O5ZxJ6Dop%2Fimage.png?alt=media&#x26;token=c515e8b9-2f1d-4eef-96a0-d2646e07f3c5" alt=""><figcaption></figcaption></figure></div>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FINoD0pKNREpm8APjDz4e%2Fimage.png?alt=media&#x26;token=8596e189-e51c-49f1-9216-fefb3d094471" alt=""><figcaption><p>High</p></figcaption></figure>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FSb56EwvWG4mTO8T8qaIT%2Fimage.png?alt=media&#x26;token=c47e7078-ab08-444e-8a5b-f8993cf6a8fc" alt=""><figcaption><p>Balanced</p></figcaption></figure>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FDXESwY42Vl9ZglBNqYyL%2Fimage.png?alt=media&#x26;token=06a4d184-f88c-4cdb-8002-fc08d25f3cf4" alt=""><figcaption><p>Strong </p></figcaption></figure>

### Breaker Blocks

<mark style="color:$info;">Breaker Blocks are key levels derived from price action where previously</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**strong resistance or support was broken**</mark><mark style="color:$info;">, signalling a significant change in market sentiment. They act as a</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**retest zone for price**</mark><mark style="color:$info;">, often providing high-probability trade entries.</mark>

* <mark style="color:$info;">**Location**</mark><mark style="color:$info;">: Found at areas where the market reverses sharply after invalidating a prior support or resistance.</mark>
* <mark style="color:$info;">**Retest Behavior**</mark><mark style="color:$info;">: Price frequently pulls back to the breaker block before continuing the trend.</mark>
* <mark style="color:$info;">**Trend Confirmation**</mark><mark style="color:$info;">: Breaker blocks confirm directional bias when aligned with overall market structure.</mark>

Bullish Breaker Block

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FJZX9CWeV78p7Goy4ftZR%2Fimage.png?alt=media&#x26;token=d2fd1e25-351f-4eff-9e5e-ced0a6f4c9d2" alt=""><figcaption><p>Bullish Breaker Block</p></figcaption></figure>

Bearish Breaker Block

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2F5zv8B2YFredXHjTnCFht%2Fimage.png?alt=media&#x26;token=06c3b6e0-2253-4887-9be3-e0b6b4c5a03b" alt=""><figcaption><p>Bearish Breaker Block</p></figcaption></figure>

{% hint style="info" %} <mark style="color:$info;">These Blocks are excellent for precision entries in both trend continuation and reversal strategies.</mark>
{% endhint %}

### Macro Order Blocks

<mark style="color:$info;">Macro Order Blocks represent</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**broader market perspectives**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">rather than solely focusing on specific timeframes.</mark>&#x20;

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FfGSS1HqmXu6JTjZZ0oo1%2Fimage.png?alt=media&#x26;token=e5fcfbe0-5963-448b-82e0-8743966c7de2" alt=""><figcaption><p>Macro Order Blocks </p></figcaption></figure>

{% hint style="info" %} <mark style="color:$info;">They provide insight into</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**larger-scale order flows**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">by capturing key zones where significant buying or selling interest exists across the broader market structure.</mark>&#x20;

<mark style="color:$info;">These blocks emphasize the</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**overall market flow**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">rather than isolated intraday movements.</mark>
{% endhint %}

***

## How to use

### **Identifying Strong Order Blocks**:&#x20;

<mark style="color:$info;">Blocks with a high percentage of total volume are likely to be more significant support or resistance levels. A strong order block with high bearish volume and negative delta (more selling) could act as a substantial resistance zone.</mark>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FOvUTV2zXA3lM1ltW286p%2Fimage.png?alt=media&#x26;token=575f8e7c-a64a-4986-82e9-c2a2f6d15278" alt=""><figcaption></figcaption></figure>

### **Assessing Potential Reversals**:

<mark style="color:$info;">If an order block shows high total volume with a negative delta, it might indicate strong sell interest. This could suggest a reversal opportunity and move price down.</mark>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FkqznJ3YZYvKYBFHETAuJ%2Fimage.png?alt=media&#x26;token=6b783226-9e2d-4bd0-b7cb-5c027f3bef65" alt=""><figcaption></figcaption></figure>

### **Refining Entries and Exits**:

<mark style="color:$info;">By analysing the delta volume and total volume within order blocks, traders can make more informed decisions on where to enter or exit trades, knowing whether buying or selling pressure dominated at those levels.</mark>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FDjHdQoUoJjnwFHHvB8Tb%2Fimage.png?alt=media&#x26;token=1231b51a-d098-4286-a568-0d2100dbcc5e" alt=""><figcaption><p>▼</p></figcaption></figure>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FPdgUKEEAYxeBxSRyiSJx%2Fimage.png?alt=media&#x26;token=176fe48f-726a-428d-8290-1e38c23dfd50" alt=""><figcaption><p>▲</p></figcaption></figure>

<mark style="color:$info;">The provided Order Blocks are designed to be cleaner in nature and more effective in their detection of key market levels.</mark>&#x20;

{% hint style="info" %} <mark style="color:$info;">By analyzing volume and volatility, these Order Blocks aim to simulate and predict where large areas of market orders may rest. By forecasting these areas they give excellent support or resistance areas.</mark>
{% endhint %}

***

### Settings

<mark style="color:$info;">The Order Blocks settings help customize how institutional buying and selling zones are analysed and displayed. Use the table below to understand each configuration option.</mark>

<div align="left" data-with-frame="true"><figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2Fe4XPsnNyuxu7iA9lvybq%2Fimage.png?alt=media&#x26;token=7c42e587-e606-4c3e-825a-a6ad4bfa0b1f" alt=""><figcaption></figcaption></figure></div>

| Setting               | Description                                                                                                                                                                                                                                                   |
| --------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Enable Blocks         | Toggles the display of all order blocks on the chart.                                                                                                                                                                                                         |
| Show Last             | Specifies the number of recent historical order blocks to display (e.g., 6).                                                                                                                                                                                  |
| Granularity           | New Multi-Select Feature: Choose which block strengths to display by checking the boxes for Weak, Balanced, High, or Strong. Use the dropdown to quickly filter between "All" or "Custom" selections.                                                         |
| Mitigation Method     | <p>Defines when a block is considered "filled":</p><p>• Touch: Price touches the block boundary.</p><p>• Wicks: Only wick penetrations count.</p><p>• Close: Price must close inside the block.</p><p>• Average: Uses an average-based price calculation.</p> |
| Show Metrics          | Provides additional data points for the block, such as strength and activity.                                                                                                                                                                                 |
| Show Traded Volume    | Displays the total volume traded within the block to gauge institutional interest.                                                                                                                                                                            |
| Extend Mode           | Extends the block visually across the chart until it is fully mitigated.                                                                                                                                                                                      |
| Show Trading Activity | Enables buy/sell imbalance metrics within the block.                                                                                                                                                                                                          |
| Score                 | Displays a third blue bar with a percentage value representing the strength of the price reaction.                                                                                                                                                            |
| Show Rating           | Assigns visual labels (e.g., Large, Normal) to indicate potential market impact.                                                                                                                                                                              |
| Show Details          | Allows customization of the display size and detail density for metrics.                                                                                                                                                                                      |
| Show Means            | Displays the midline of the order block, a common reference for retracements.                                                                                                                                                                                 |
| Macro Blocks          | Enables broader, high-level order blocks for a "big-picture" perspective.                                                                                                                                                                                     |
| Enable Breaker Block  | Identifies zones where previous resistance has flipped to support (or vice versa).                                                                                                                                                                            |