OPEN-SOURCE SCRIPT
Order Blocks Graded [ITA]
🟠 OVERVIEW
Order Blocks Graded marks order blocks and then does the part most scripts
skip: it tells you which ones are worth looking at.
A block only survives if the move that left it actually broke structure. What
survives is then graded A, B or C from two things that can be measured rather
than argued about - how far the impulse travelled relative to normal range,
and how much volume traded on the candle that produced it.
A-grade blocks are drawn solid. C-grade blocks are drawn faint. The grade sits
on the block itself, so a glance is enough.
🟠 CONCEPTS
* Order Block - The last opposite-colour candle before the move that broke
structure. The bullish version is the final down candle before price broke a
swing high, and the bearish version is its mirror.
* Break of Structure - A close beyond the last confirmed swing point. Without
one there is no block, because nothing was displaced.
* Impulse - The distance from the block to the close that broke structure,
measured in ATR multiples so it means the same thing on any symbol and any
timeframe.
* Grade - A when the impulse cleared the A threshold, B when it cleared the B
threshold, C otherwise. An origin candle on above-average volume lifts the
block one grade.
* Mitigation - Price trading back into the block. Mitigated blocks grey out,
or are removed entirely if you would rather only see what is still untouched.
🟠 FEATURES
🔹 Structure filter - a block is only kept when the move that left it broke a
swing point, so consolidation noise never produces one
🔹 A/B/C grading from impulse size in ATR terms and volume on the origin candle,
with the thresholds exposed as inputs
🔹 Opacity follows the grade, so the strongest blocks are the ones that stand
out without reading anything
🔹 Minimum block height, which stops a doji from leaving a flat line where a
zone should be
🔹 Staleness cutoff - a block price never returned to eventually stops being
useful and is dropped, instead of stretching across the whole chart
🔹 Mitigated blocks either grey out or disappear, your choice
🔹 Lowest grade to draw, so you can hide C blocks entirely and keep only the
strong ones
🔹 Alerts on both bullish and bearish blocks
🟠 HOW TO USE
Start with everything visible and see which grades your symbol actually
produces. Then raise the lowest grade to draw until the chart shows only what
you would act on.
Treat A blocks as the ones worth waiting for. They come from a move that
travelled several times normal range, which is what displacement is supposed to
mean in the first place.
Grey blocks are history, not signals. They show where blocks formed and how
they graded, which is the fastest way to see whether this symbol respects them
at all before you trade one.
Swing Lookback controls everything upstream. Lower values find more structure
and therefore more blocks, higher values find fewer and larger ones.
On a volatile symbol the blocks are wide and easy to read. On an index they can
be thin, so raise Minimum Block Height if the chart starts to look like lines
rather than zones.
🟠 CONCLUSION
Finding order blocks is easy and most scripts already do it. Knowing which of
them earned their place is the part that decides whether the chart helps you or
just fills up. That is what the grade is for.
Order Blocks Graded marks order blocks and then does the part most scripts
skip: it tells you which ones are worth looking at.
A block only survives if the move that left it actually broke structure. What
survives is then graded A, B or C from two things that can be measured rather
than argued about - how far the impulse travelled relative to normal range,
and how much volume traded on the candle that produced it.
A-grade blocks are drawn solid. C-grade blocks are drawn faint. The grade sits
on the block itself, so a glance is enough.
🟠 CONCEPTS
* Order Block - The last opposite-colour candle before the move that broke
structure. The bullish version is the final down candle before price broke a
swing high, and the bearish version is its mirror.
* Break of Structure - A close beyond the last confirmed swing point. Without
one there is no block, because nothing was displaced.
* Impulse - The distance from the block to the close that broke structure,
measured in ATR multiples so it means the same thing on any symbol and any
timeframe.
* Grade - A when the impulse cleared the A threshold, B when it cleared the B
threshold, C otherwise. An origin candle on above-average volume lifts the
block one grade.
* Mitigation - Price trading back into the block. Mitigated blocks grey out,
or are removed entirely if you would rather only see what is still untouched.
🟠 FEATURES
🔹 Structure filter - a block is only kept when the move that left it broke a
swing point, so consolidation noise never produces one
🔹 A/B/C grading from impulse size in ATR terms and volume on the origin candle,
with the thresholds exposed as inputs
🔹 Opacity follows the grade, so the strongest blocks are the ones that stand
out without reading anything
🔹 Minimum block height, which stops a doji from leaving a flat line where a
zone should be
🔹 Staleness cutoff - a block price never returned to eventually stops being
useful and is dropped, instead of stretching across the whole chart
🔹 Mitigated blocks either grey out or disappear, your choice
🔹 Lowest grade to draw, so you can hide C blocks entirely and keep only the
strong ones
🔹 Alerts on both bullish and bearish blocks
🟠 HOW TO USE
Start with everything visible and see which grades your symbol actually
produces. Then raise the lowest grade to draw until the chart shows only what
you would act on.
Treat A blocks as the ones worth waiting for. They come from a move that
travelled several times normal range, which is what displacement is supposed to
mean in the first place.
Grey blocks are history, not signals. They show where blocks formed and how
they graded, which is the fastest way to see whether this symbol respects them
at all before you trade one.
Swing Lookback controls everything upstream. Lower values find more structure
and therefore more blocks, higher values find fewer and larger ones.
On a volatile symbol the blocks are wide and easy to read. On an index they can
be thin, so raise Minimum Block Height if the chart starts to look like lines
rather than zones.
🟠 CONCLUSION
Finding order blocks is easy and most scripts already do it. Knowing which of
them earned their place is the part that decides whether the chart helps you or
just fills up. That is what the grade is for.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Pine Script developer & trader. I build clean indicators - Smart Money Concepts, scanners, risk tools. ITAtradingtools.com
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Pine Script developer & trader. I build clean indicators - Smart Money Concepts, scanners, risk tools. ITAtradingtools.com
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.