# Order Blocks {% embed url="" %} **Order Blocks** are specific price zones where significant buying or selling activity has previously occurred, typically initiated by institutional traders or large market participants. These blocks represent areas of high interest, where large orders have been placed, leading to substantial shifts in market direction. 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. *** ## Volume ratio bars Each order block displays two bars that represent the percentage breakdown of bullish and bearish volume within that block: #### Bearish Volume Bar**:**
This bar indicates the percentage of volume that is bearish within the order block. A high percentage here suggests that a significant portion of selling activity occurred at this level, reinforcing the bearish sentiment in the order block. This could indicate strong resistance if the price revisits this zone, as sellers previously dominated this level. #### Bullish Volume Bar**:**
This bar shows the percentage of volume that is bullish within the order block. A high percentage of bullish volume suggests strong buying interest at this level, indicating potential support if the price revisits this area. Buyers were previously active here, which could lead to a reaction if the market approaches this level again. In practical terms, these volume bars help traders assess the strength of the order block: * **High Bearish Volume in a Sell Block**: Strengthens the potential resistance at that level. * **High Bullish Volume in a Buy Block**: Strengthens the potential support at that level. 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. ### Rating Bar It measures how strongly price reacted to the order block by combining: * The **volume traded** during the reaction move. * The **price displacement** (how far price moved away from the block).
The percentage value shown on the bar represents the strength of that reaction. * A higher percentage means the order block created a strong, high-volume move. * A lower percentage means the reaction was weaker or lacked conviction. 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. ### Total volume and delta volume * **Total Volume with Percentage**: Each order block shows the total trading volume within the block, along with the percentage this volume represents relative to all identified order blocks.
* **Delta Volume**: 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.
## Calculation Method The Calculation Method setting allows you to define the underlying logic used to identify and filter Order Blocks. This flexibility ensures that the toolkit can adapt to different market conditions and trading styles—whether you prioritize heavy institutional participation or pure structural price shifts.
### **Volume** When set to Volume, the algorithm prioritizes areas of high market participation. This method identifies zones where a significant amount of liquidity was exchanged before a price expansion.
{% hint style="info" %} It filters out "fake" moves that occur on low volume, helping traders focus on zones backed by genuine institutional interest. Best for: Identifying high-probability reversal zones where "Big Money" has likely left a footprint. {% endhint %} ### **Price Action** The Price Action method focuses strictly on market structure and price displacement. It identifies Order Blocks based on the speed and magnitude of the move away from a specific level, regardless of the volume traded.
{% hint style="info" %} This is ideal for fast-moving markets or assets where volume data might be fragmented (like some Forex pairs). It ensures you don't miss key structural levels just because they occurred during lower-volume sessions. Best for: Scalpers and momentum traders who prioritize structural breaks and "Fair Value" gaps over liquidity accumulation. {% endhint %} ### **Beluga Peak** The Beluga Peak method is a proprietary calculation designed to find the "sweet spot" between price exhaustion and aggressive reversal. It looks for specific "peak" characteristics in market behavior to highlight the most sensitive part of a supply or demand zone.
Order Block - smart money
{% hint style="info" %} How it helps: It aims to provide highly precise entry levels within a larger zone. By pinpointing the "peak" of the order flow, it helps traders refine their stop-loss placement and improve their Risk-to-Reward ratio. Best for: Precise entries and traders looking for the most reactive "inner" levels of an Order Block. {% endhint %} ## Categorization Based on Total volume and delta volume order blocks are categorized into High, Balanced and Strong blocks for easy identification of significant levels
## Breaker Blocks Breaker Blocks are key levels derived from price action where previously **strong resistance or support was broken**, signalling a significant change in market sentiment. They act as a **retest zone for price**, often providing high-probability trade entries. * **Location**: Found at areas where the market reverses sharply after invalidating a prior support or resistance. * **Retest Behavior**: Price frequently pulls back to the breaker block before continuing the trend. * **Trend Confirmation**: Breaker blocks confirm directional bias when aligned with overall market structure. ### Bullish Breaker Block
Breaker Order Block - smart money concept

Bullish Breaker Block

### Bearish Breaker Block
Breaker Order Block - smart money concept

Bearish Breaker Block

{% hint style="info" %} These Blocks are excellent for precision entries in both trend continuation and reversal strategies. {% endhint %} ### Macro Order Blocks Macro Order Blocks represent **broader market perspectives** rather than solely focusing on specific timeframes.
{% hint style="info" %} They provide insight into **larger-scale order flows** by capturing key zones where significant buying or selling interest exists across the broader market structure. These blocks emphasize the **overall market flow** rather than isolated intraday movements. {% endhint %} *** ## How to use ### **Identifying Strong Order Blocks**: 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.
### **Assessing Potential Reversals**: If an order block shows high total volume with a positive delta, it might indicate strong buy interest. This could suggest a reversal opportunity and move price up.
### **Refining Entries and Exits**: 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.
The provided Order Blocks are designed to be cleaner in nature and more effective in their detection of key market levels. {% hint style="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. {% endhint %} *** ### Settings 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.
| Setting | Description | | ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | Enable Blocks | Toggles the display of all order blocks on the chart. | | **Calculation Method** |

This dropdown menu determines the core logic used to identify valid Order Blocks. Changing this setting will shift the focus of the detection algorithm to suit different market environments.

| | 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 |

Defines when a block is considered "filled":

• Touch: Price touches the block boundary.

• Wicks: Only wick penetrations count.

• Close: Price must close inside the block.

• Average: Uses an average-based price calculation.

| | 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). | --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.bigbeluga.com/toolkits/market-core-pro-tm/order-blocks.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.