Volume Tick Analysis and Order Blocks [Tcs] | ALGO

2023년 5월 26일

The indicator has been developed to provide the most complete vision possible of liquidity areas, highly traded past price levels, and how volume tick analysis affects price action.
It helps to draw on all the areas that generate a price move, or market inefficiency.
The indicator has different features:

- ORDER BLOCKS: The indicator draws different kinds of order blocks on the chart.
• Real valuable order blocks - where the price reaction is more probable. It's define by a calculation of the quantity tick volume exchanged between bulls and bears on a price level, which can create a candle event, such as engulfing candles. For this motivation the order blocks plotted will be a real valuable area.
The threshold can be adjusted based on the strategy's needs, in particular this set up has been added to adapt the strategy on different kind of asset. For Cryptocurrency for example the best threshold are between 0.5 and 1. The lower the value, the fewer order blocks will be plotted, but they will be more valuable. It's possible to show the volume exchanged, the percentage, and who controlled the valuable area, bulls or bears, on these order blocks.
For a better visualization, the order block will change color (more transparent) after it will be violated for the first time, and it will be deleted once the price will break trough it.
All order blocks can be extend
GENERAL OB VISUALIZATION

EXAMPLE OF TRADES ON OB


It's also possible to plot the footprint of past and invalidated order blocks on the chart, which can help to draw lines for future valuable areas.


• Secondary order blocks are less valuable order blocks where the probability of a price reaction is less. Usually, they work for small retracements and are more useful for scalpers. the concept is the same as Primary order blocks but without a too restricted calculation of tick volume exchanged


• LIQUIDITY GRABS: Liquidity grabs are plotted on candles that try to invalidate an order block, but high volumes move them to the opposite direction. They happen when opposite players try to move the market in the opposite direction. They are calculated only on primary order blocks.
A good entry usually is when a liquidity grab appear, the price come in the liquidity grab area to fry liquidity and price close again in the liquidity grab area.


• VOLUME VSA: All candles with high and above-average volume are plotted on the chart for both bull and bear volume. It highlights more than average volume, high volume, and extreme volume with different colors. This can help to spot good entries or detect beginning/end of a trend. For example abnormal high volume at the end of a big price movement, in the same direction, can define the end of a trend. If same situation of abnormal high volume, but in the opposite direction of the trend, could define the beginning of a market inversion.


• FAIR VALUE GAPS: It highlights all the inefficiencies of market moves, which can be used as retracement or price return areas. Here, they can be adjusted based on how effective they are adjusting the volume threshold. Bulls and bears FVG are defined in different colors. More effective FVG are plotted in less transparent colors, and you will find three levels of effectiveness.
Both OB and FVG will change color once the price retraces on them, and they will be removed when they are invalidated.


Please note that this indicator is for educational purposes only and should not be used for trading without further testing and analysis.

2023년 7월 10일

릴리즈 노트

UPDATES
• Added different kind of alerts and shapes based on the price reaction on Order blocks.
• Improved the calculation of liquidity grabs

• ACTIVATE OB ALERTS - Any alert()function call - will activate alert for any order block price touch and for the creation of new liquidity grabs
• BLOCK BREAKER + - When the price take liquidity under the OB and push back above/below the middle of the OB - Only on the last created OB, bullish or bearish
• BLOCK DRILLER ▲ - When the price break trough the OB with a take of liquidity above/below the OB - Only on the last created OB, bullish or bearish
• BLOCK REVERSE • - When the price is trying to break trough the OB in the opposite direction of the OB - Only on the last created OB, bullish or bearish
• BLOCK CONTINUATION ON REVERSAL ☗ - When the price is trying to reverse and break trough the OB - Only on the last created OB, bullish or bearish
• BLOCK EATER ♦ - When the price breaks trough the OB in an high liquidIty area with multiple OB - Only on the last created OB, bullish or bearish
• BLOCK TRENDFOLLOW x - When multiple OBs in the same direction are created - Only on the last created OB, bullish or bearish
• ALERTS for last OB created and last OB price's touch