Institutional Order Flow Strength Classifier [LuxAlgo]The Institutional Order Flow Strength Classifier tool identifies and ranks unmitigated order blocks by analyzing the institutional intensity behind market structure breaks.
It provides a percentage-based strength score for each zone, helping traders distinguish between minor price stalls and significant institutional supply/resistance areas.
🔶 USAGE
The indicator automatically detects Order Blocks (OBs) formed during Market Structure Breaks (BOS). Unlike traditional OB tools that highlight every pivot, this script focuses on the "Institutional Footprint"—the specific area where big players positioned themselves before a significant move.
🔹 Interpreting Strength (%)
The strength score (0-100%) indicates the level of institutional participation during the zone's creation.
High Strength (>70%): Indicates massive displacement and high relative volume. These zones are high-probability areas for limit order entries as they represent significant "unfilled" interest.
Medium Strength (40-70%): Indicates standard trend continuation zones, often useful for stop-loss placement or scaling into positions.
Low Strength (<40%): Indicates zones with weak follow-through. These are often treated as "internal liquidity" and may be swept or ignored by price rather than providing a bounce.
🔹 Zonal Overlap Filtering
To prevent chart clutter, the script features an advanced "Zonal Overlap" system. If multiple Order Blocks are created within the same price range, the indicator can hide the redundant zones, ensuring that only the most relevant level is visible. This helps traders focus on "confluence zones" where multiple institutional orders may be clustered.
🔹 Strongest OB Tracking
The script includes a dynamic "Strongest OB" plot. This is a continuous filled background area that tracks the zone with the highest strength percentage within the user-defined buffer. While individual OBs are shown as dashed boxes, this solid plot highlights the single most significant institutional level currently influencing the market.
🔶 DETAILS
The philosophy behind this script is that "not all Order Blocks are created equal." To classify them, the script uses a dual-metric weighted calculation:
Displacement (60% weight): This measures the "expansion" or the distance price moved away from the OB relative to its size. A large move indicates a high imbalance between buyers and sellers, suggesting institutional urgency.
Relative Volume (40% weight): This compares the volume of the candle that formed the OB to its 20-period average. High volume confirms that the move was backed by significant capital rather than low-liquidity volatility.
The script identifies the OB by searching for the last opposite-colored candle (the "Institutional Footprint") before a break of a Pivot High or Pivot Low. Once price crosses the extreme side of the box (the bottom for bullish OBs or top for bearish OBs), the zone is marked as "mitigated" and removed from the display.
🔶 SETTINGS
🔹 Order Block Settings
Pivot Lookback: The number of bars required to confirm a pivot high or low used for market structure detection.
Max Unmitigated OBs: The maximum number of active zones displayed on the chart at once.
🔹 Visualization
Bullish/Bearish OB Color: Sets the fill color for the detected Order Block boxes.
Hide Overlapped Zones: When enabled, prevents multiple boxes from stacking in the same price area, showing only the most relevant one.
Show Strength Labels: Toggles the percentage labels on the right side of the boxes.
Show Strongest OB Plot: Enables the continuous filled background plot for the zone with the highest strength score.
Strongest OB Buffer Size: Determines how many recent unmitigated zones the script should look through to find the strongest one.
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