REVERSAL+ORDER BLOCK

٢٣ مايو ٢٠٢٣

REVERSAL + ORDER BLOCK
Important Background
This indicator has been modified to make it simpler, more user-friendly, and suitable for beginners. In addition, I added reversal signals to facilitate the reversal zone and entry point. This combination is expected to increase confirmation/validation of price reversals in a swing. The signal buy/sell is NON-REPAINT.

The most important indicator display shows the swing structure only which involves Breakout of Structure (BOS), higher high (HH), higher low (HL), lower low (LL), and lower high (LH).
In addition, this indicator displays;
1. demand zone > horizontal blue and supply zone > horizontal red
2. Pivot low and high for daily/weekly/monthly
3. Bullish breakout structure (BOS > green line), Bearish breakout structure (BOS > red line)
4. higher high (HH), higher low (HL), lower low (LL), lower high (LH)

The parameters used are Average True Range (ATR), the highest and lowest in a certain period, as well as using Pivot high & low values to determine the swing structure. This structure is used to mark support and resistance that has occurred.


Meanwhile, the reversal signal (buy/sell) uses the parameters of the highest and lowest values in a certain period to determine the reversal signal for some movement of price.
Among the modified ones, I have changed the labels of buy/sell signals which are easier to see.

ORDER BLOCK STRATEGY
An order block is an area where there has been a large concentration of limit orders waiting to be executed. Order blocks are identified on a chart by observing previous price actions and looking for areas where the price experienced significant movement or sudden changes in direction.
The price movement in the chart will form a price structure where it shows higher high / higher low / lower low / lower high.
The price structure and the price level are very important to identify the demand and supply areas.

Price structure/Order Block( OB ) Strategy
LL ( lower low – green ) = price experienced significant movement or sudden changes in direction to reversal up. So the next movement, this area possibility for buy/long area.
LH ( lower high – red ) = This is the sell/short area for the next movement if a pullback happened. When LH breakout, the possibility of the price to continue rising.
HH ( higher high-red ) = price experienced significant movement or sudden changes in direction to reversal down. So the next movement, this area possibility for sell/short area.
HL ( higher low-green ) = This is the buy/long area for the next movement if a rebound happened. When LH breakdown, the possibility of the price to continue move down.


Horizontal blue background = support/demand zone, this is a bullish OB formed. Signal for buy.
Horizontal red background = resistance/supply zone, this is a bearish OB formed. Signal for sell.


Reversal Signals
This indicator also has a trend change/reversal signal for a swing. The swing reversal point is indicated by a buy/sell signal. This signal is NON-REPAINT. Just follow the signals.
This gesture is a simple one by using the configuration of the lowest price and the highest price based on the previous length period. Of course, it can help traders find the best position in trading activities.
For the Crude Palm Oil (FCPO) and the SOY BEAN market, the best time frame is 5 minutes.
For the CRUDE OIL, the best time frame is 5 & 30 minutes.
For the CRYPTOS, the best time frame is 5 minutes.
For the GOLD, the best time frame is 5 & 15 minutes.


The strong signal/best entries ;
Of course, the application of ORDER BLOCK and REVERSAL SIGNAL can provide a high level of confidence and strong confirmation.


HOW TO TRADE WITH ORDER BLOCK & REVERSAL SIGNAL



HOW ABOUT ACCURATION?
This is an example backtest for FCPO from Mei 11 – Mei19. Please noted, do the backtest repeatedly to improve efficiency and real evaluation.


CRUDE OIL 5M

ETHUSD 5M

GOLD 15M

SOYBEAN 5M


DISCLAIMER:
All technical signals and strategies using this indicator are for educational purposes. Take it at your own risk.