Order Blocks
Flagship Order Blocks
The Order Blocks in Market Dynamics innovate on classical mainstream analysis techniques. The blocks are split into the following levels:
- Soft
- High
- Loud
Soft is the lowest value meaning there is a relatively low number of orders at a given level. High is the middle value meaning there is a reasonable number of orders at a given level. Loud is the highest value meaning this could be a massive collection of orders.
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| Our flagship orderblocks |
These order blocks are derived from volume analysis on the market in order to predict where large buying or selling orders are placed. This generally makes order blocks fantastic support or resistance levels as well as TP or SL tools. Generally looking for the higher valued order blocks is best as these tend to be more significant.
Inside of the order blocks there are 2 metrics:
The relative % of volume
The data + volume
The % value shown gives the % of volume going into the order block relative to the other blocks. They all sum to a value of 100%. The higher this value; the more significant the block. This value is scaled and therefore can be easy to analyse. The volume value shows the volume going into that order block.
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| Metrics showing volume data inside orderblock |
A green and red bar are shown in the Order Block. This shows the percentage of bullish vs bearish volume that went into calculating this block. In the example above these values are labelled. A delta is also provided showing the difference between the bullish and bearish volumes.
It isn't possible in Pinescript to get orderbook data so these order blocks are calculated using volume analysis.
Traders are able to extend the Order Blocks in the settings using the extend toggle. This pushes the blocks out to the right most side of the screen giving a "forecast" effect. This helps with future analysis and can help a trader visualise future price action.
Traders are also able to adjust the number of Order Blocks displayed via the Max OBs setting. This is set to a default of 4 meaning 4 order blocks are shown at a time. A user can adjust this to customise how many blocks are shown. A higher value might show less significant orders blocks and a lower value might put focus on the more significant blocks. Traders are also able to adjust the colors via the color input.
A full walkthrough of these is provided in this video:
MTF Order Blocks
The MTF Order Blocks allow traders to show order blocks from other timeframes. Here the user can adjust the selected timeframe in the provided dropdown menu. We generally recommend selecting timeframes at least four times the current timeframe. For example if on the 1h chart; we'd suggest using the 4h or above. Once again the user can extend these order blocks and adjust the number shown if they so wish.
In order for the order blocks to be shown; the asset must have volume data.