Order Block Zone Study + ConfirmationOrder Block Zone Study + Confirmation marks support and resistance order-block zones, then helps users judge whether price is only reaching a zone or reacting with confirmation.
It is designed to answer three simple questions:
Where is the order-block zone?
How strong is the zone based on the model?
Is price only touching it, or is confirmation also active?
The goal is not to give automatic trade calls. The goal is to make order-block zones easier to read, compare, and monitor.
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WARNING
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This indicator is a chart-reading tool. It does not predict the future and does not guarantee that any order block will hold.
The labels, scores, observed stats, and confirmation markers are based on the script's internal model and the available chart data. They should be used as context, not as financial advice or as standalone buy/sell instructions.
A zone can look strong and still fail. Always check the broader trend, market structure, liquidity, news risk, and your own risk management.
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(1) OVERVIEW
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This indicator has two main parts.
1) Order-block zone detection
The script detects bullish and bearish order-block-style zones.
Support OB - a bullish order-block zone that may act as support.
Resistance OB - a bearish order-block zone that may act as resistance.
The zone logic uses several chart conditions together, including:
swing highs and swing lows
the last opposite candle before a displacement move
ATR-based displacement strength
EMA trend alignment
premium / discount location
pivot support or resistance confluence
body expansion and relative volume
current market bias
2) Confirmation add-on
The confirmation layer checks whether price is simply reaching the zone or whether the reaction is supported by additional conditions.
It can use:
fast EMA position
fast EMA direction
RSI behavior
MACD behavior
candle direction
relative volume
The box shows where the zone is. The label explains the zone quality. The triangle shows that confirmation conditions are active.
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(2) WHAT YOU SEE ON THE CHART
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Boxes - active support or resistance OB zones.
Labels - zone type, grade, status, observed behavior, edge class, and model rating.
Triangles - confirmation conditions after price reaches or approaches a zone.
Faded zones - historical or invalidated zones kept for visual context.
Midline - the center of the zone, useful for reading depth of reaction.
The indicator is designed to keep the latest active zones visible and reduce chart clutter by limiting how many zones and labels remain on the chart.
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(3) HOW TO USE IT PROPERLY
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The correct way to use this indicator is to read the zone step by step, not only look at the box.
Simple workflow
Find the zone.
Check whether price is reacting around a support OB or resistance OB.
Read the label.
The label explains the model grade, zone status, observed behavior, edge class, and final model rating.
Check the status.
Fresh zones are usually cleaner than tested zones. Broken zones should not be treated as active zones.
Wait for reaction quality.
A zone touch alone is only the first step. Confirmation adds evidence that price is reacting.
Use the triangle as confirmation context.
A triangle means the confirmation engine found enough supporting conditions. It is not a guaranteed entry.
Check broader market structure.
Use the indicator together with trend, support/resistance, liquidity, and risk management.
The best reading comes when the zone type, label quality, status, confirmation, and broader market structure all support the same idea.
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(4) LABEL EXPLANATION
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A label may look like this:
Support OB | Grade A | Status Fresh | Observed 61.2% | Edge Strong | Model 8.1/10
Support OB / Resistance OB
This tells you the zone type.
Support OB - bullish order-block zone, treated as possible support.
Resistance OB - bearish order-block zone, treated as possible resistance.
Grade
The grade summarizes the internal zone score.
A++ - 86 or higher
A - 72 to 85.99
B+ - 60 to 71.99
B - 48 to 59.99
C - below 48
A++ and A are stronger model grades. B+ is acceptable. B and C are weaker.
Status
The status explains the current condition of the zone.
Fresh - price has not touched the zone yet.
Tested - price already touched the zone.
Broken - price invalidated the zone.
Fresh is usually cleaner than tested. Broken means the zone is no longer active.
Observed
Observed shows the script's chart-based observation for that side of the model. It combines how often zones were touched and how often resolved zones reached the model target before invalidation.
This is not a guaranteed win rate. It depends on available chart history and the number of resolved examples.
Edge
Edge classifies the model's observed reward/risk behavior into simple language:
Weak
Slightly Weak
Neutral
Strong
Very Strong
This is based on observed target/invalidation behavior, ATR-based target and invalidation distances, and confidence from sample size.
Model
Model is the final combined rating from 1 to 10.
It combines:
zone grade
zone status
observed behavior
edge class
confidence from available outcomes
A practical reading:
8 to 10 - stronger model reading
6 to 7.9 - decent model reading
4 to 5.9 - average or weaker reading
below 4 - low-quality reading
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(5) PRACTICAL LABEL EXAMPLES
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Example 1
Support OB | Grade A | Status Fresh | Observed 63% | Edge Strong | Model 8.2/10
This is a stronger support-zone reading. If price returns and confirmation appears, the reaction has better model support.
Example 2
Resistance OB | Grade B+ | Status Fresh | Observed 55% | Edge Neutral | Model 6.6/10
This is a watchlist-quality resistance zone. It may be useful, but it is not as strong unless confirmation appears.
Example 3
Support OB | Grade A++ | Status Tested | Observed 60% | Edge Strong | Model 7.4/10
The grade is strong, but the zone has already been tested. It can still matter, but it is less clean than a fresh zone.
Example 4
Resistance OB | Grade C | Status Fresh | Observed 47% | Edge Weak | Model 3.8/10
This is a weak model reading. Even if price reaches it, it should not be trusted alone.
Example 5
Support OB | Grade B+ | Status Fresh | Observed 58% | Edge Neutral | Model 6.9/10
This is a decent zone, but if there is no confirmation, it is usually better to keep watching instead of treating the touch as enough.
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(6) CONFIRMATION
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Confirmation is optional, but useful.
The order block marks the important area. The confirmation add-on checks whether price is reacting with enough supporting evidence.
Simple logic
OB zone = where price may react.
Label = how good the zone looks according to the model.
Triangle = confirmation conditions are active.
For support confirmation, the script checks whether price is inside or near the support OB and whether enough bullish confirmation conditions are active.
For resistance confirmation, it checks the opposite side.
The confirmation engine can include:
EMA position
EMA direction
RSI behavior
MACD behavior
candle behavior
relative volume
A zone touch starts the observation. Confirmation adds extra evidence that the reaction may be developing.
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(7) ALERTS
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The alert conditions can be grouped into three simple types.
1) Zone reached alerts
These alerts tell you price has reached a support or resistance OB zone.
This means the area is active, but confirmation may not be present yet.
2) Zone reached + confirmation alerts
These alerts tell you price reached the zone and confirmation conditions are active.
This is the stronger alert type, but it is still only a chart condition.
3) Confirmation only / any event alerts
These alerts are broader monitoring alerts. They are useful when you want to know that a support or resistance event is happening, even if you do not want a very specific alert.
Reached only = start watching
Reached + confirmation = stronger chart condition
Alerts are monitoring tools. They are not trade instructions and do not guarantee a result.
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(8) HOW THE MODEL IS CALCULATED
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1. Zone Score
Score = Base + Displacement + Break + Trend + Body + Volume + PD Filter + S/R Filter + Bias + Edge
The score combines several pieces of zone quality, including displacement strength, structure break, trend alignment, candle body expansion, volume expansion, premium/discount location, pivot confluence, market bias, and observed edge.
2. Quality Grade
Quality Grade = function of Score
The raw score is converted into A++, A, B+, B, or C.
3. Zone Status
Zone Status = Fresh, Tested, or Broken
The status depends on whether price has touched or invalidated the zone.
4. Observed Rate
Observed Rate = Target Rate x Touch Rate
This combines how often zones are revisited and how often resolved zones reach the model target before invalidation.
5. Target Rate
Target Rate = Targets Reached / Resolved Zones x 100
This measures resolved zones only.
6. Touch Rate
Touch Rate = Touches / Total Zones x 100
This measures how often detected zones were revisited by price.
7. Reward/Risk Ratio
RR = Target ATR Multiplier / Invalidation ATR Multiplier
This is based on the ATR target and invalidation settings.
8. Edge
Edge = Target Rate x RR - (1 - Target Rate)
This estimates whether the observed target/invalidation behavior is positive, neutral, or weak.
9. Confidence
Confidence = min(Resolved Outcomes / Minimum Observed Outcomes, 1.0)
Confidence adjusts how much trust is placed on the observed stats. Low sample size means lower confidence.
10. Final Model Rating
Model Rating = Grade Score + Status Score + Observed Score + Edge Score
This creates the final label rating from 1 to 10.
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(9) IMPORTANT LIMITATIONS
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This script does not know the future. It only evaluates chart conditions using its internal rules.
Observed stats can be unreliable when there are not enough resolved examples. A label can show useful context, but it should not be treated as proof that the next zone will work.
Order blocks can fail during strong trends, news events, low-liquidity conditions, or when broader market structure changes.
Use the model rating as context, not certainty.
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DISCLAIMER
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This script is a public open-source indicator for educational and informational use.
It is not financial advice, investment advice, or a recommendation to buy or sell any asset.
The script identifies order-block-style chart zones and confirmation conditions only. It does not guarantee profitable trades, signal accuracy, or future performance.
Users should always apply their own analysis, position sizing, and risk management before making any trading decision.
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