S/R Order Block
Last updated
Last updated
The indicator doesn't search for imbalances in the conventional manner, which typically involves a lack of trades between two price levels. Instead, it detects rapid shifts away from important levels, indicating potential areas of imbalance. By analyzing crossovers, cross-unders, pivot points, and comparing highs/lows within the same timeframe, traders can uncover undervalued or overvalued zones. These inferred imbalances are essential for traders seeking price levels where significant market movements may occur.
Operation Mechanics Bullish
Crossing Above Pivot High: When the closing price of a bar exceeds a pivot high, it signals buyer dominance and an upward price trend.
New Low in the Same Period: If a lower low occurs within the same period as the pivot high, it suggests a retracement from a high point, possibly resulting in a price gap as the price swiftly rebounds.
Bearish
Crossing Below Pivot Low: A closing price below a pivot low indicates seller control and a downward price trend.
New High in the Same Period: A higher high within the same period as the pivot low indicates a market rally to a new high before a decline below the pivot low, potentially causing a downside price gap.
Utilization Approach Enhanced order blocks are frequently revisited, providing potential entry or exit points as prices may attempt to "fill" the imbalance created by rapid price movements. This strategy leverages the concept that market imbalances are often revisited, enhancing trading confluence when combined with the order block concept.
The heatmap displayed offers a comprehensive visual representation, effectively illustrating the strength and significance of the order block. Utilizing color gradients and intensity variations, it provides traders with a clear and detailed understanding of the order block's magnitude within the market context. This visual aid serves as a valuable tool for assessing the level of support or resistance offered by the order block, allowing traders to make informed decisions based on the prevailing market dynamics.
