Detecting Order Blocks and Breaker Zones with Swing-Based Price Analysis

Summary

The document describes an indicator that marks bullish and bearish order-block zones from price swings, then tracks when price crosses their boundaries. It defines zones from price levels preceding upward or downward breaks of detected swing highs or lows. Users can choose whether zone boundaries use candle bodies or full high-low ranges, adjust the swing lookback, and limit how many historical bullish and bearish zones appear. Colors distinguish active zones, breaks, and periods when price remains inside a zone.

It suggests using zones as possible support or resistance for reversal setups, or treating a break as a potential continuation signal, with stops placed outside the zone. The text offers no empirical evidence that these areas identify institutional orders or improve trading results. It notes sensitivity to the lookback and recommends additional confirmation, such as volume or trend filters. The indicator provides chart-based hypotheses; it does not establish trade quality or specify a tested risk and execution plan.

Key ideas

• The indicator detects potential bullish and bearish zones from swing highs, swing lows, and subsequent price breaks.
• Zone boundaries can use candle bodies or wicks, and the swing lookback is adjustable.
• Price rejection at a zone may be considered for a reversal, while a zone break may suggest continuation.
• The document provides no performance evidence and notes that results may depend on settings and confirmation filters.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.