Pure Price Action Order & Breaker Blocks [LuxAlgo]

30 Tem

The Pure Price Action Order & Breaker Blocks indicator is a pure price action adaptation of our previously published and highly popular Order-Blocks-Breaker-Blocks script.

Similar to its earlier version, this indicator detects order blocks that can automatically turn into breaker blocks on the chart once mitigated. However, the key difference/uniqueness is that the pure price action version relies solely on price patterns, eliminating the need for length definitions. In other words, it removes the limitation of user-defined inputs, ensuring a robust and objective analysis of market dynamics.

🔶 USAGE



An order block is a significant area on a price chart where there was a notable accumulation or distribution of orders, often identified by a strong price move followed by consolidation. Traders use order blocks to identify potential support or resistance levels.



A mitigated order block refers to an order block that has been invalidated due to subsequent market movements. It may no longer hold the same significance in the current market context. However, when the price mitigates an order block, a breaker block is confirmed. It is possible that the price might trade back to this breaker block, potentially offering a new trading opportunity.



Users can optionally enable the "Historical Polarity Changes" labels within the settings menu to see where breaker blocks might have previously provided effective trade setups.

This feature is most effective when using replay mode. Please note that these labels are subject to backpainting.

🔶 DETAILS

The swing points detection feature relies exclusively on price action, eliminating the need for numerical user-defined settings.

The first step involves detecting short-term swing points, where a short-term swing high (STH) is identified as a price peak surrounded by lower highs on both sides. Similarly, a short-term swing low is recognized as a price trough surrounded by higher lows on both sides.

Intermediate-term swing and long-term swing points are detected using the same approach but with a slight modification. Instead of directly analyzing price candles, we now utilize the previously detected short-term swing points. For intermediate-term swing points, we rely on short-term swing points, while for long-term swing points, we use the intermediate-term ones.



🔶 SETTINGS

• Detection: Market structure used to detect swing points for creating order blocks.
  
• Show Last Bullish OB: Number of the most recent bullish order/breaker blocks to display on the chart.
  
• Show Last Bearish OB: Number of the most recent bearish order/breaker blocks to display on the chart.
  
• Use Candle Body: Allows users to use candle bodies as order block areas instead of the full candle range.
  

🔹Style

• Show Historical Polarity Changes: Allows users to see labels indicating where a swing high/low previously occurred within a breaker block.
  

🔶 RELATED SCRIPTS

• Pure-Price-Action-Structures.
• Order-Blocks-Breaker-Blocks.

30 Tem

Sürüm Notları

- Changed short title