Order Block indicator MT4 | MT5

The Order Block indicator divides the chart into blocks which indicates the current trend. It is widely used to detect uptrends and downtrends and to track the volume of transactions on Metatrader. The indicator is based on historical data and patterns that are believed to repeat themselves.

Furthermore, Order blocks are areas or zones where important sell and buy volume exists and generally are a large number of successive candles. For example, heavy selling pressure in a short-determined timeframe makes traders avoid buying the asset, which in turn pushes down the price to a very low level. The distance between the start of the downtrend and the lowest reached price is the interval of the order block indicator.

Human interpretation is always required to use the Order Block indicator. As the indicator divides the chart over different blocks, the human eye must follow the colored line above each block and interpret it accordingly. Generally speaking, the indicator has 3 main colors used to indicate the selling and buying pressure and the current trend direction. These colors can be customized based on the user’s preferences. 3

However, in a standard manner, the purple color indicates that the current trend is bearish and that the bears are pushing down the market. While the white color indicates that the current trend is sideways and that there is an equilibrium between the bulls and bearish pressure power. The Green indicates that the current trend is bullish and that the bulls are leading. Therefore, traders should stand down when the color is white, go long when it’s green, and short or liquidate the current position if it’s purple.

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