Volume-Confirmed Order Blocks - CFD ChartsOrder-block zones for CFD and cash-index charts — kept only when the impulse
that created them carried above-average REAL futures volume.
What makes it original: classic order-block tools mark every last opposite
candle before a fast move, which paints charts full of untested zones. This
one validates the impulse against the exchange volume of the auto-detected
futures contract (never the CFD's tick volume): a zone only exists where real
contracts changed hands. Price coordinates stay this chart's prices — only the
volume is borrowed, so the futures-vs-cash basis cannot shift a zone.
How it works:
- Impulse = candle range > k x ATR with a decisive body (both adjustable).
- The last opposite candle within a few bars before the impulse becomes the
order block; its high/low span the zone.
- Volume confirmation: the impulse candle needs >= x times the average
futures volume (set the multiplier to 0 for classic, unfiltered blocks).
- Zones extend right until price closes through the far side (mitigation),
then they are removed; the number of kept zones is capped.
- Label-free chart output — zones read from color and geometry alone. Alerts
fire on new bullish/bearish zones.
How to use it: treat the zones as inventory areas of real participation —
pullbacks into a fresh volume-confirmed zone are the classic retest context,
a close through the far side invalidates it (and removes it from the chart).
The volume filter is the quality dial: raise the multiplier to keep only the
zones where the futures market genuinely committed. Delayed futures feeds
confirm new zones a few minutes late; history is complete.
*This script is part of a consistent set of open-source session, range and
volume tools — the companions are on my profile.*
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