Order Block & Trendline Breakout Strategy

aiTrendview.com Order Block & Trendline Breakout Strategy: Complete Guide
Introduction
The Order Block & Trendline Breakout Strategy ("ORDER BLOCK ANALYSIS") is a comprehensive TradingView Pine Script indicator that combines institutional order flow, trend recognition, breakout logic, multi-factor signal filtering, and real-time analytics—all visualized through an ergonomic stats dashboard.
This guide provides a full overview, feature breakdown, best practices, and step-by-step use for discretionary and systematic traders.
Key Features
1. Order Block (OB) Detection
• Relevant Periods: Detects bullish and bearish order blocks using consecutive bars in the same direction, with user-defined relevance (OB Relevant Periods).
• Move Threshold: Validates OB only if the price moves by a minimum user-set percentage.
• Channel Management: Keeps the latest OB levels displayed, removing stale ones for clarity.
2. Trendline Breakout Logic
• Pivot-Based TLs: Draws support/resistance trendlines using pivots, with options to use candle wicks or bodies.
• Automatic Extension: Trendlines are extended a user-specified number of bars.
• Breakout Detection: Signals are triggered on actual breakout events relative to calculated dynamic trendlines.
3. Sophisticated Filtering
• Volume Filter: Requires large real-time volume (spike versus average) for valid signals.
• ATR (Volatility) Filter: Filters out false/weak signals by excluding those that occur during choppy, low-vol markets.
• Trend Confirmation: Only generates signals aligned with current EMA-defined trend.
4. Market Environment & Risk Stats
• RSI/MACD Analysis: Real-time calculation/classification augments bias and signal scoring.
• Bollinger Bands: Used for overbought/oversold context and stats dashboard.
• Support & Resistance: Rolling levels used for context in both trading decisions and dashboard.
• Volatility, Momentum, Price Position: Tracks environment, enabling informed discretionary action.
5. Trade Analytics & Management
• Automated Trade Targets: Calculates and plots take-profit (TP) and stop-loss (SL) levels per trade based on ATR and current price.
• PnL, Win%, Count: Tracks and displays statistics for live decision support.
6. Dynamic Dashboard Table
• On-Chart Visual Table: Horizontal dashboard displays all critical readings, status, and history in one row, minimizing chart clutter.
• Customizable Table Size: Choose between small, medium, normal, large, and extra large for optimal screen space usage.
• Flexible Placement: Instantly drag-and-drop the dashboard to any screen edge or corner (360 degrees) via selector.
• Visual Color Coding: Instantly spot bullish/bearish/neutral/safe/dangerous market states.
7. Pro Alerts System
• Automated Alerts: Ready-to-use TradingView alertconditions for new signals, targets hit, stop-losses, no-trade zones, and high-opportunity events.
Configuration and Inputs
Setting Purpose
OB Relevant Periods Number of candles for order block detection.
Min. Percent Move Minimum validated move for OB.
Number of OB Channels Maximum live OB levels plotted.
Trendline Period Lookback for trendline pivots.
Use Wicks for Trendlines Candle wicks vs. candle closes for pivots.
Extension Bars How far to project trends into the future.
Use Volume Filter Demand higher-than-normal volume for signals.
Volume Threshold Multiplier Sensitivity for volume spikes.
Use ATR Filter Filter signals by current volatility.
ATR Filter Multiplier Sensitivity for volatility filter.
Show Information Table Toggle dashboard display.
Show Targets Toggle plotting of TP/SL lines.
Bullish/Bearish Color Individual color themes for OBs and signals.
Dashboard Table Size Resize dashboard text.
Dashboard Table Position Select any of 9 chart locations for dashboard placement.
Dashboard Table Fields
The dashboard always displays, in a single horizontal row:
• LTP/Change%/Volume: Current price, price movement, and volume spike multiple.
• RSI/MACD: Overbought/oversold and momentum context (numeric and bar).
• Trend/Sentiment: EMA-stacked market direction and emotional sentiment composite.
• Volatility: Current volatility tier (high/medium/low).
• Buy OB/Sell OB: Nearest bullish or bearish order block levels.
• Signal: Current strategy signal: BUY / SELL / WAIT.
• Status: "ACTIVE" or "AVOID" based on no-trade logic.
• Support/Resistance: Key rolling price levels.
• Position: Where price stands (support, resistance, upper/lower/mid).
• Risk Level: Volatility-based risk assessment.
• R:R Ratio: Reward-to-risk of currently open setup.
• Win %: Real-time win rate for signal quality transparency.
• Total PnL: Sum of PnL across all trade signals.
• Momentum: Reading of current price momentum.
All numerical and risk status fields use color highlighting for easy scanning.
How to Analyze and Use This Strategy
1. Setup & Customization
• Add script to your TradingView chart and open indicator settings.
• Adjust periods, trendline, volume/ATR filters, and display according to your market and trading style.
• Set dashboard size for clarity and place it where it's least intrusive.
2. Understanding Dashboard Status
• Green highlight: Bullish edge or buy signal confirmed.
• Red highlight: Bearish edge or sell confirmed.
• Gray/yellow: Neutral or sideways conditions; reduce trading activity.
• Signal "WAIT": No new signals; allow market to develop.
• Status "AVOID": Market is non-ideal (consolidating, low vol/volume); only act on highest conviction setups or step away.
3. Acting on Signals
• BUY/SELL Alerts: Watch for table to show "BUY" or "SELL". Confirm all filters align (bullish OB or resistance break, bullish trend, volume spike, etc.).
• Check Dashboard Stats: Only act if risk, momentum, and environment suit your trading plan.
• Trade Management: On signal, use plotted TP (take-profit) and SL (stop-loss) lines or values provided in the table.
• PnL & Win Rate Tracking: Monitor your performance in real-time.
• Respect AVOID status: Reduce risk or skip trades entirely if the dashboard calls a "No Trade Zone".
4. Use Alertconditions for Automation
• Enable alerts for buy/sell confirmations or targets; consider sending real-time notifications to your device.
• Alerts fire only when all filters and logic are satisfied.
Advanced Tips
• Tune Filters: Harsher filters (higher volume/ATR) reduce noise but may drop some strong signals; find your best trade-off.
• Position Sizing: Use dashboard's risk evaluation for position sizing and capital allocation.
• Combine with Price Action: Use dashboard levels and stats to reinforce other technical or fundamental reads.
• Evaluate Win % and PnL: Use the built-in statistics to periodically review and adjust strategy.
• Use Dashboard Placement and Size: Adjust according to trading setup, monitor spacing, or on mobile/tablet for legibility.
Best Practices
• Validate on Historical Data: Check how the signal would have performed over several months and market regimes.
• Stay Disciplined: Only take trades when OB, trend, volume, volatility, and risk assessment all align.
• Monitor Session Changes: Be aware of volatility and volume changes during market opens, closes, or events—dashboard helps highlight these shifts.
• Continually Learn: Analyze why signals succeed or fail using Win %, PnL, and environment fields.
Conclusion
This indicator provides a robust, institutional-grade edge by merging price action-based order blocks and trendlines with statistical filtering and professional analytics. The fully configurable dashboard and automated alerts make it suitable for both advanced and aspiring traders seeking visual clarity and tactical precision.
Mastering this tool means not just following signals, but actively reading and adapting to the conditions the dashboard provides for every phase of the market.