Order Block Finder - yzeen ayoub

Core Concept
Order blocks represent areas where large institutional traders (banks, hedge funds) have placed significant orders, creating zones of potential support or resistance. The script identifies these zones by looking for specific candlestick patterns.
How It Detects Order Blocks
Bullish Order Blocks

Formation: Starts with a single bearish candle (close < open)
Confirmation: Followed by a sequence of consecutive bullish candles
Displacement: Price must move up by a minimum percentage from the formation candle

Bearish Order Blocks

Formation: Starts with a single bullish candle (close > open)
Confirmation: Followed by a sequence of consecutive bearish candles
Displacement: Price must move down by a minimum percentage from the formation candle

Key Features
Visual Elements

Rectangles: Draw the actual order block zones using the high/low of formation candles
Equilibrium Lines: Show the middle point of each order block
Risk/Reward Lines: Display stop loss (SL), 2R, and 3R take profit levels
Color Themes: Bright or dark color schemes

Customizable Parameters

Confirmation Candles: How many consecutive candles needed (default: 5)
Display Count: Maximum order blocks to show (default: 20)
Minimum Displacement: Required percentage move after formation (default: 0.2%)
Visual Options: Toggle equilibrium lines, risk/reward levels, signature

Smart Features

Array Management: Automatically removes old order blocks to keep chart clean
Alert System: Notifies when price enters an order block zone
Performance Optimized: Uses efficient counting functions instead of complex loops

Trading Logic
The script assumes that:

Institutional Imbalance: The formation candle represents institutional order flow
Retail Response: The confirmation sequence shows retail traders responding
Future Reaction: When price returns to these zones, it may find support/resistance

Practical Use
Traders use this to:

Identify high-probability entry zones
Set stop losses below/above order blocks
Target 2R and 3R profit levels
Get alerts when price approaches these critical zones

The script essentially automates the process of finding these institutional footprints that many smart money traders look for manually.