Price Action Toolkit: Order Blocks

Order Blocks in the Price Action Toolkit

An Order Block (OB) is an area with an outstanding amount of limit orders, causing large reactions in the market when price reaches these areas. The Price Action Toolkit automatically identifies and plots Order Blocks on your chart. Below we’ve outlined how each setting and feature works.

Settings

Volumetric Info

Enabling volumetric information adds a layer of analysis by associating volume data with Order Blocks. This helps traders assess the strength and reliability of the zones. Volume profiles for each Order Block display total volume, high/low volume ratios, and visual representations of volume activity within the gap.

Total Volume: Displays the combined volume for the bars that form the Order Block, providing a clear indication of market participation in the gap

Percentage Ratio: Shows the proportion of high vs. low volume within the Order Block.

Low Percentage: Indicates dominance of buyers or sellers, depending on whether the Order Block is bullish or bearish.
High Percentage: Indicates reduced volume support for the Order Block’s direction, suggesting the zone may be less reliable.

Volume Bars Visualization: Displays the buying versus selling volume in the Order Block.

Volumetric info for Order Blocks in the Price Action Toolkit

Zone Invalidation

The Zone Invalidation setting allows traders to choose how an Order Block is invalidated.

Close: A candle must close below a bullish Order Block or above a bearish Order Block to invalidate it.
Wick: A candle’s wick must go below a bullish Order Block or above a bearish Order Block to invalidate it.

Combine Zones

Enabling the Combine Zones setting will merge overlapping Order Blocks of the same type into a single larger zone, reducing chart clutter.