OPEN-SOURCE SCRIPT

Order Block Finder - Institutional Supply & Demand

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Technical Description and Methodology:

This script identifies institutional Order Blocks (OB) by detecting consolidation bases followed by high-momentum displacement. Unlike traditional pivot-based indicators, this tool focuses on the "Smart Money" footprints using the following mathematical logic:

1. Pivot Detection: It identifies Swing Highs and Swing Lows using a user-defined lookback period (ta.pivothigh and ta.pivotlow).
2. Relative Volume Filter: To distinguish retail moves from institutional ones, the script checks if the volume at the pivot bar is significantly higher than the 20-period Simple Moving Average (SMA).
3. Calculation: Volume[pivot] > ta.sma(volume, 20) * multiplier.
Price Displacement: It validates the "Base" by ensuring the price closes outside the previous range with an impulsive candle.
4. Smart Mitigation: The boxes use a dynamic mitigation logic. A block is considered "mitigated" (and the box extension stops) when the price action intersects the zone, signaling that the orders at that level have been filled.

How to use:

*. Green Zones: Bullish Order Blocks (Demand).
*. Red Zones: Bearish Order Blocks (Supply).
*. Optimized for Pine Script v6 for maximum calculation efficiency.

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