Price-Action Signals from Fair Value and Order-Block Ranges

Summary

This strategy combines a simple moving average as a fair-value reference with recent price ranges labeled as order blocks. It examines the highest high and lowest low over a configurable lookback, then compares the current close with the moving average. The source marks a bullish signal when price is above fair value and the close-to-average difference falls within a stated fraction of the recent range; the corresponding condition below fair value marks a bearish signal. These signals trigger long or short entries. The documented defaults are a 20-period range and a 60-period fair-value average.

The accompanying BTC-USDT futures test configuration covers a short interval, but no performance results are supplied. The document characterizes order blocks as areas associated with past institutional activity, yet the shown code infers them from price ranges and does not use order-book or trade-flow data. It flags false signals, dependence on historical price behavior, and the possibility of missing short-term moves. Further testing, filters, explicit exits, and risk controls are suggested.

Key ideas

• The strategy uses a moving average as fair value and a recent high-low range to identify candidate blocks.
• A close above fair value generates a long signal when its distance fits the stated range-based threshold.
• A close below fair value produces the corresponding short signal.
• The source derives its signals from price data and does not measure actual institutional order flow.
• The brief published test setup reports no results, and the document highlights false-signal risk.

Tags

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