Order Block Marker with Mitigation Tracking - indicatore per MetaTrader 5

Order Block Marker with Mitigation Tracking

The idea behind it

An order block is a popular price-action concept: the last candle against the direction of a strong move. The idea is that this candle shows where larger participants were active before the impulse, and that price often returns to the zone before continuing.

• Bullish order block - the last bearish (down) candle before a strong move up.
• Bearish order block - the last bullish (up) candle before a strong move down.

The indicator needs a clear rule to call a move "strong", so it uses objective conditions (all measured on closed bars):

1. Candle k has the opposite color of the move.
2. The next candle is a displacement candle in the other direction and closes beyond the High (or Low) of candle k.
3. Within InpImpulseBars bars after candle k, price moves away from it by at least InpImpulseMult times the average candle range (calculated over InpAvgPeriod bars).
4. Before the impulse is confirmed, price has not already returned into the zone or closed through it.

After a block is confirmed, its state is tracked on every new price:

• Fresh - price has not returned to the zone yet.
• Mitigated - price returned into the zone (a touch, or the middle of the zone, depending on InpMitigation). The zone stays on the chart with a different style, because many traders watch the first retest.
• Broken - a bar closes beyond the far side of the zone. The block is no longer valid and is removed.

The indicator keeps a list of active zones. At the start it scans a limited number of bars; after that, each new closed bar is processed once and each tick only updates the states of the listed zones. The full history is never rescanned.

How to interpret it

• White dashed box (default) - a fresh bullish order block, labeled "Bull OB". Price returning from above is often watched as a possible demand zone.
• Gray dashed box (default) - a fresh bearish order block, labeled "Bear OB". Price returning from below is often watched as a possible supply zone.
• Dim dotted box - a mitigated block: price has already come back to it. The label becomes "(mitigated)". Such blocks are usually considered weaker than fresh ones.
• Disappearing box - a block that was broken by a close beyond it, or a mitigated block when InpShowMitigated is false.
• Tooltip - hover over a box to see its direction and state.
• Boxes start at the block candle and extend to the right, so you can see how long a zone has remained untouched.

External variables (inputs)

Recommended use

• Works on any symbol and timeframe; M5 to H4 charts of liquid symbols are the most common choice. A block is confirmed only InpImpulseBars bars after its candle, so it appears with a short delay and never changes afterwards.
• Raise InpImpulseMult for fewer, stronger blocks and lower it for more blocks. Use OB_ZONE_BODY for tighter zones.
• A fresh block is a candidate for attention, not a trade signal. Combine it with trend, market structure or higher-timeframe levels.
• Mitigation is detected with wicks (High and Low), so it is irreversible once price has touched the zone, even on the current bar. A block is broken only by a closed bar, so the forming bar never removes a block.
• On the first start only the last InpLookbackBars bars are scanned. Blocks that were broken within that history are not shown.
• When more than InpMaxZones blocks are active, the oldest ones are removed to keep the chart readable.
• All objects use the prefix OrdBlk_ and are removed when the indicator is deleted from the chart. Do not attach two copies to the same chart because they would share object names.
• It is a chart indicator only and does not trade, so it works the same on netting and hedging accounts.

Fig. 1. OrderBlockMarker on an M15 chart with default settings: two fresh blocks and one mitigated block (black and white image per Code Base guidelines).