OPEN-SOURCE SCRIPT
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Explanation of the Script
Bullish and Bearish Candles: The function isBullishOrderBlock() checks if a candle is "bullish" in nature (based on body size to range ratio). Similarly, isBearishOrderBlock() checks for bearish candles.
Order Block Length and Threshold: length is the number of bars to scan for an order block, and threshold sets how strong a candle needs to be to be considered an order block.
Detection: The loop searches backward through the bars to find strong bullish and bearish order blocks, marking the price points where the strong moves happened.
Plotting: The plotshape() function is used to plot arrows or labels on the chart to mark where bullish or bearish order blocks are identified.
Improving and Customizing
Highlighting Blocks: Instead of just marking a point, you can plot horizontal boxes or shaded regions using box.new() to visually highlight the order block zone.
Use of Different Timeframes: You can modify the script to look for order blocks across multiple timeframes to increase accuracy.
Complex Rules: Depending on your strategy, you may want to add additional rules, such as looking for price to return to the order block area before confirming the strength of the block.
Bullish and Bearish Candles: The function isBullishOrderBlock() checks if a candle is "bullish" in nature (based on body size to range ratio). Similarly, isBearishOrderBlock() checks for bearish candles.
Order Block Length and Threshold: length is the number of bars to scan for an order block, and threshold sets how strong a candle needs to be to be considered an order block.
Detection: The loop searches backward through the bars to find strong bullish and bearish order blocks, marking the price points where the strong moves happened.
Plotting: The plotshape() function is used to plot arrows or labels on the chart to mark where bullish or bearish order blocks are identified.
Improving and Customizing
Highlighting Blocks: Instead of just marking a point, you can plot horizontal boxes or shaded regions using box.new() to visually highlight the order block zone.
Use of Different Timeframes: You can modify the script to look for order blocks across multiple timeframes to increase accuracy.
Complex Rules: Depending on your strategy, you may want to add additional rules, such as looking for price to return to the order block area before confirming the strength of the block.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.