Supply and Demand Order Blocks - Nadeem Al-Qahwi

This advanced order block detection system identifies key supply and demand zones on your chart using a proprietary multi-factor algorithm. Unlike basic implementations that only look for engulfing patterns, this indicator incorporates price momentum, volume confirmation, and swing point analysis to filter out false signals and highlight only the most significant trading zones.

Unique Features
Dual Detection System:

Identifies both internal order blocks (within trends) and swing order blocks (at market turns)

Separate customization for each type allows focused analysis

Smart Zone Validation:

Dynamic strength calculation based on price rejection intensity

Timeframe-sensitive filtering (automatically adjusts for different chart intervals)

Minimum price movement threshold to eliminate insignificant zones

Advanced Visualization:

Three display modes (Boxes & Levels, Boxes Only, Levels Only)

Gradient coloring system showing zone strength intensity

Configurable midline markers for precise entry/exit planning

Methodology
The indicator scans the specified lookback period for:

Bullish Order Blocks: Last bearish candle before a sustained upward move

Bearish Order Blocks: Last bullish candle before a sustained downward move

Each potential zone is evaluated using:

Price Action Confirmation:

Minimum required price move (configurable as percentage)

Consecutive closes beyond the order block range

Volume Analysis (implied through price movement):

Significant expansion beyond the zone

Sustained momentum after breakout

Zone Quality Filters:

Overlap prevention (merges similar zones)

Strength ranking system (prioritizes zones with strongest reactions)

Usage Instructions
Primary Settings:

Adjust lookback period (default 500 bars)

Select display style based on your trading needs

Zone Customization:

Internal Order Blocks: Best for trending markets

Swing Order Blocks: Ideal for reversal trading

Configure colors and styles for visual clarity

Advanced Filters:

Minimum price move: Increase for higher timeframes

Overlap threshold: Adjust based on market volatility

Strength filter: Focus only on high-probability zones

Trading Applications
Trend Trading: Use internal order blocks as continuation signals

Reversal Trading: Swing order blocks mark potential turning points

Risk Management: Zone boundaries serve as natural stop levels

Multiple Timeframe Analysis: Combine settings for different chart intervals

Originality Statement
This implementation differs from basic order block indicators through:

Proprietary strength calculation algorithm

Adaptive timeframe filtering

Intelligent zone merging technology

Configurable display system for personalized charting

While the concept of order blocks is not novel, this particular implementation adds significant value through its sophisticated filtering mechanisms and customizable visualization options that aren't available in open-source alternatives.