[ICT Sebo] Orderblock

Overview

This indicator identifies and highlights potential order block zones based on momentum expansion and candle sequence behavior. It combines directional movement strength with contextual candle analysis to mark areas where institutional activity may have occurred.

The script is designed as a structural order block visualization tool and does not generate trade signals.

How it works

The indicator monitors directional movement using ADX and directional movement components. A trigger is generated when sustained momentum expansion is detected and subsequently slows, indicating a potential transition area in price behavior.

Once a trigger occurs, the script evaluates the surrounding candle context to determine whether the market is in a bullish or bearish state. Based on this context, it scans leftward to identify a contiguous sequence of opposite-direction candles that form the potential order block.

The high and low of this candle sequence define the order block range.

Visualization

When a valid order block is identified, a shaded box is drawn over the candle sequence and extended forward for a configurable number of bars. Bullish order blocks are displayed in green and bearish order blocks are displayed in red. Each box is labeled directly on the chart for clarity.

The indicator plots order blocks only after all conditions are confirmed and does not repaint previously identified zones.

Intended use

This tool supports order block identification, momentum-based structure analysis and contextual price evaluation. It is suitable for intraday and short-term analysis and should be used in combination with broader market context and risk management.

Notes

This indicator does not predict price direction, does not provide entry or exit signals and is intended purely as a visual and analytical reference.