Smart Money Orderblocks

#What you see

Boxes labelled "Bullish OB" (Bullish order block color) and "Bearish OB" (Bearish order block color). A box starts at the order-block candle and extends to the right edge of the chart. When price later moves through it, the box ends there, gets a dashed border and the label changes to "Bullish OB Breaker" or "Bearish OB Breaker".

#How it works

The indicator tracks the most recent swing high and swing low, using Swing Lookback candles on each side. When a candle closes above the last swing high, the candle with the lowest price between that swing and the break becomes a bullish order block. When a candle closes below the last swing low, the candle with the highest price in that stretch becomes a bearish order block. With Closes instead of swing lows/highs on, swings and boxes are based on candle bodies (open and close); with it off, on highs and lows.

A bullish block becomes a breaker when a later candle's body moves below it, a bearish block when a later body moves above it.

#How to read it

In smart money concepts an order block is the area where the move that broke structure started, and it is assumed that orders are left there. When price returns to an intact bullish block, traders look for support; at an intact bearish block, for resistance. A breaker has failed in its original role and is often watched from the other side.

A swing counts only once Swing Lookback candles on both sides exist, and only from that candle on – so a block appears when it was known and never changes or disappears because of later candles (it can still turn into a breaker).

#Using it in strategies

The blocks are available as outputs in the Trade Setup and in WickScript: bullTop / bullBottom describe the intact bullish block nearest to the close, bearTop / bearBottom the nearest intact bearish block – empty while there is none. bullNew / bearNew are 1 on the candle that confirms a block, bullBreak / bearBreak on the candle whose body breaks a block (it becomes a breaker and leaves the intact blocks).

Blocks appear from their confirming candle and breakers from the breaking candle, so backtests never see them early. Typical uses: a limit entry at bullTop with the stop under bullBottom, or bearBreak as a trigger for breaker trades. In WickScript: use indicator "Smart Money Orderblocks" as ob, then ob.bullTop.

#Settings

Open the settings with the slider icon next to the indicator (Indicators, F3). Numeric settings can be swept as Step 1 / Step 2 parameters when you run a strategy.

#Inputs

#Styles

#Outputs

These values can be used in Trade Setup triggers, filters and exits (see Trade Setup) and in WickScript.

#Use in WickScript

use indicator creates this indicator inside a script, with settings by their ID. Each output is a field of the name after as. See WickScript indicators.

wickscript 1
indicator "Smart Money Orderblocks from the list" on chart
use indicator "SMT OB" with length 10 as mySmtob
show mySmtob.bullTop as line "bullTop"