Price Action Toolkit for Structure, Order Blocks, Liquidity, and Trend Lines
Summary
This chart overlay groups four price action tools: swing-based market structure, order blocks, liquidity levels, and projected trend lines. A ZigZag-style method identifies swing highs and lows; closing breaks of prior swings are labeled as trend reversals (CHoCH) or continuation breaks (BoS), depending on the prior directional state. The overlay marks recent swings and structural breaks for visual inspection.
Order blocks are zones based on an extreme candle between a swing level and its break, extended by an ATR measure and removed after price closes through the relevant level. Pivot highs and lows define potential liquidity areas; a breach that closes back across the level is marked as a possible sweep. Trend lines connect recent pivots and are projected forward only when their slope matches the expected direction. Each module can be enabled separately, with configurable pivot sensitivities and display limits. These are charting heuristics, not validated trading rules: the document supplies implementation details but no performance testing, and pivot confirmation necessarily depends on later bars.
Key ideas
- Swing highs and lows anchor structure breaks classified as reversal or continuation events.
- Order block zones use an extreme candle near a break and an ATR-based extension.
- Pivot levels mark potential liquidity, while a breach followed by a close back across is treated as a possible sweep.
- Trend lines connect recent pivots and project forward when their slopes point in the expected direction.
- The overlay provides visual signals but no evidence that they produce profitable trades.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.