Price-Based Order Block Signals for Long and Short Trades

Summary

This strategy labels potential bullish and bearish order blocks using recent highs, lows, and closes. With a configurable lookback, it compares the current low with a prior rolling low and the current high with a prior rolling high; qualifying moves generate long or short entries, and an opposite signal closes an existing position. The document frames these zones as possible support or resistance and suggests that the method can be combined with other indicators or adaptive risk controls.

The example parameters use a five-bar lookback and a threshold multiplier of one, with a BTC/USDT futures backtest configuration over about a month. No performance results are provided. Despite the order-flow framing, the shown code uses price bars and does not analyze order book or trade-flow data, so the signals do not verify the presence of large orders. The formulas and threshold behavior also warrant careful review before use, and false breakouts, parameter sensitivity, liquidity, slippage, and changing market conditions are cited as limitations.

Key ideas

• The method identifies candidate zones by comparing current price extremes and closes with historical bars.
• Bullish and bearish conditions open long and short positions, respectively, and opposite signals close positions.
• The example uses a five-period lookback and a threshold multiplier of one.
• The code relies on price data and does not directly measure order book depth or executed order flow.
• The document reports no backtest outcomes and highlights false signals, parameter sensitivity, and execution risks.

Tags

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