Order Blocks
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.
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
Bearish Breaker Block
Macro Order Blocks
Macro Order Blocks represent broader market perspectives rather than solely focusing on specific timeframes.
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 negative delta, it might indicate strong sell interest. This could suggest a reversal opportunity and move price down.
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.
Settings
This information provides a comprehensive view of each order block's volume profile, giving traders insights into the strength of buying or selling interest, which can enhance trading precision when approaching key levels.
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