EMA-Crossover Volume Order Blocks as Support and Resistance
Summary
The indicator marks potential supply and demand zones after a crossover between fast and slow exponential moving averages. After a bullish crossover, it finds the lowest low in the preceding lookback and uses that bar’s low and candle body to define a demand zone. A bearish crossover instead uses the highest high and candle body to define supply. The zones extend forward until a closing price crosses their outer boundary; optional settings retain broken zones on the chart and show an EMA trend cloud or a zone midpoint.
The supplied ProRealTime logic also uses average true range to set a minimum zone thickness and to remove nearby older blocks of the same type. The article suggests watching active demand zones for possible long entries and supply zones for possible short entries, and treats their failure as a possible structure break. These are indicator interpretations, not tested trading results. The document gives no performance evidence, and the zones depend on chosen lookbacks and indicator rules; a crossover or price reaction alone does not establish a reliable reversal or entry.
Key ideas
- Fast and slow EMA crossovers trigger searches for potential order blocks.
- Bullish blocks use a prior low and candle body, while bearish blocks use a prior high and candle body.
- A closing price beyond a block’s outer boundary marks that zone as broken.
- ATR-based sizing and overlap handling adjust the plotted zones, while settings control their display.
- The article proposes using active zones as potential support or resistance but provides no backtest evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.