Order Blocks + Liquidity Void [ChartPrime]
Updated
July 17, 2024
TradingView

For free use on the TradingView platform

The Order Blocks + Liquidity Void indicator by ChartPrime is a comprehensive tool designed to help traders identify significant price levels and market dynamics based on the SmartMoney concept. It combines the principles of order blocks and liquidity voids to provide insights into potential support, resistance, and high-volume areas in the market.An order block refers to a price area on the chart where significant buy or sell orders were previously placed by large institutional traders. These zones are key to identifying potential support or resistance levels, providing insights into future price movements.

KEY FEATURES:
Order Blocks Detection:

  • Uses ATR (Average True Range) to determine volatility and filter significant moves.
  • Identifies and visualizes bullish and bearish order blocks based on sharp price movements.


Liquidity Void Analysis:Liquidity voids, sometimes known as an imbalance, represent significant moments in the market, marked by rapid price movements between two levels with high volume.

  • Detects areas of high volume and significant price movement, potentially indicating liquidity voids.
  • Highlights these areas with distinct bar coloring for easy identification.

Breakout Detection:

  • Monitors for breakouts of identified order blocks.
  • Marks breakouts with a diamond symbol (❖) and changes the order block's border style to dotted.


Significant Moves:

  • Uses color-coding to distinguish between bullish and bearish patterns.
  • Provides clear visual cues for sharp price movements and liquidity voids.


USAGE: When Sharp move happen indicator checks up to 4 candles back. If was a sharp move up indicator checks for bear candles 4 bars before to draw bull order block.If sharp move down happened indicator checks 4 bars before for bullish candle to draw bearish order block .


FUNCTIONALITY DETAILS:
1. Order Blocks:- Detected when price movement exceeds the threshold multiplied by the ATR.- Bullish order blocks are displayed in teal, bearish in red.- Each order block is labeled with "Bull - OB" or "Bear - OB" for easy identification.
2. Liquidity Voids:- Identified based on volume levels and price movement relative to recent volatility.- Highlighted with orange bar coloring when detected.
3. Breakout Detection:- Continuously monitors existing order blocks for price breakouts.- Marks breakouts with a diamond symbol and changes the order block's appearance.
4. Chart Management:- Automatically manages the number of displayed elements to maintain chart clarity.- Removes oldest boxes, lines, and labels when the specified limit is exceeded.


USER INPUTS:

  • ATR Length: Defines the period for ATR calculation (default: 10).
  • Threshold (x ATR): Sets the minimum move size to be considered a sharp swing (default: 2.0).
  • OB Amount: Maximum number of order blocks to display (default: 30).
  • Show OB: Toggle to show/hide order blocks.
  • Liquidity Void Threshold: Sets the volume level for identifying liquidity voids (default: 1.5).
  • Show Liquidity Void: Toggle to show/hide liquidity void highlighting.

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The Order Blocks + Liquidity Void indicator is a powerful tool for traders seeking to identify key price levels and potential market turning points. By combining order block analysis with liquidity void detection, it provides a comprehensive view of market structure and potential areas of interest. This indicator can be particularly useful for determining entry and exit points, as well as for understanding overall market dynamics and potential trend reversals.

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