Order Block Indicator MT4

Definition of Order Block Indicator

The Order Block Indicator is a technical analysis tool used in trading to identify areas of support and resistance on a price chart. It works by analysing price action and identifying areas where there has been a significant shift in supply and demand. These areas are marked on the chart as order blocks, which can be used to anticipate potential market reversals or breakouts. The indicator helps traders make more informed trading decisions by providing them with valuable information about market sentiment and potential price movements.

Step-by-step guide on how to add the Order Block Indicator to MT4

·        Open MT4 and navigate to the "Insert" tab in the top menu.

·        Select "Indicators" and then "Custom."

·        Locate and select the Order Block Indicator file (usually in .ex4 or .mq4 format) from your computer.

·        Once selected, click "Open" to add the indicator to MT4.

·        The Order Block Indicator will then appear in the "Navigator" window on the left-hand side of the MT4 platform.

How to interpret the signals given by the indicator

The Order Block Indicator will mark areas on the chart as order blocks, which can be used to identify potential levels of support and resistance. The indicator can also provide signals for potential market reversals or breakouts. Traders can interpret these signals by looking for price action patterns that confirm the signal, such as candlestick patterns or chart patterns. It is also important to consider other technical indicators and fundamental analysis to confirm the validity of the signal.

The Order Block Indicator can give several types of signals

Order block support/resistance

These are areas where there has been a significant shift in supply and demand, indicating potential levels of support or resistance.

Order block breakout

This signal occurs when price breaks through an order block level, indicating a potential trend reversal or continuation.

Order block reversal