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Smart Order Blocks [Pro Version]

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Here’s a **clear, detailed "How It Works" explanation** for this indicator:

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## ✅ **Smart Order Blocks \[Pro Version] – How It Works**

### **Purpose**

This indicator detects **Order Blocks (OBs)** based on **pivot highs and lows**, and automatically marks **Bullish** and **Bearish OB zones** on the chart with optional extensions and alerts. It is designed to help traders identify **institutional price levels** where liquidity is often engineered for future price moves.

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### **Customization Options**

✔ **Source** → Choose between Wicks or Bodies for OB calculation.
✔ **Pivot Settings** → Adjust sensitivity for detecting pivots.
✔ **Extend OBs** → Keep zones visible until tapped, or fix a specific width.
✔ **Show Labels** → Displays OB type and strength on chart.
✔ **Colors** → Configure Bullish, Bearish, and Invalid OB colors.

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### **Practical Usage**

* **Entry Strategy**:

* Wait for price to **revisit a Bullish OB** in an uptrend → Long entry.
* Wait for price to **revisit a Bearish OB** in a downtrend → Short entry.
* Combine with:

* **Market Structure (HH/HL or LH/LL)**.
* **Confirmation signals** (e.g., candlestick pattern, break of structure).
* **Risk Management** → Stop loss outside OB zone.

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### ✅ **Summary in One Sentence**

The indicator automatically identifies **institutional OB zones**, shows their strength, extends them until mitigated, and alerts you when price interacts with these key liquidity levels, helping you trade like Smart Money.

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