Scalping Reaction Zones + Valid Order Blocks

via Freelancer ·

Budget / Salary$30–150
TypeFreelance project
LocationRemote
Posted1 hour ago
Platform: TradingView

Programming Language: Pine Script v6

Type: Custom Indicator

Project Name:
Scalping Reaction Zones + Valid Order Blocks

MAIN GOAL

I need a custom TradingView indicator for scalping.

The indicator must detect:

1. Reaction / Explosion Zones
2. Valid Order Blocks
3. Combined Reaction Zone + Order Block zones

The indicator should NOT generate:
Buy signals
Sell signals
TP
SL
Entry signals
Trading recommendations

The main purpose is to detect strong price zones where price moved aggressively from and where price may react again when it returns.

TIMEFRAME LOGIC

Each timeframe must work independently.

M1 chart = use M1 candles only
M5 chart = use M5 candles only
M15 chart = use M15 candles only
M30 chart = use M30 candles only
H1 chart = use H1 candles only
H4 chart = use H4 candles only

If I change the timeframe, the indicator must recalculate all zones using the current chart timeframe only.

Do not mix zones from different timeframes.

Default mode:
Current Chart Timeframe Only

REACTION / EXPLOSION ZONES

The indicator must detect a small BASE candle or opposite candle before a strong price expansion.

Bullish example:

Small bearish candle or small base candle
Then strong bullish displacement
The original candle becomes a DEMAND / REACTION ZONE

Bearish example:

Small bullish candle or small base candle
Then strong bearish displacement
The original candle becomes a SUPPLY / REACTION ZONE

Default zone boundaries:
Full candle High to Low

Optional:
Body + Extreme Wick

BASE CANDLE RULES

The BASE candle should preferably be:

Small relative to ATR
Small body relative to full candle range
Opposite candle before displacement
Or a small neutral base candle

Required settings:

ATR Length
Maximum Base Range x ATR
Maximum Base Body / Range
Accepted Base Candle Type

Accepted Base Candle Type options:

Opposite Candle Only
Opposite or Small Candle
Any Small Candle

DISPLACEMENT CONFIRMATION

Do not create a zone after a small move.

There must be a strong displacement.

Measure using:

Distance from base in ATR
Strongest impulse candle body
Directional candle ratio
Total departure distance

Required settings:

Bars After Base To Confirm
Minimum Departure x ATR
Minimum Impulse Body x ATR
Minimum Directional Candle Ratio

VALID ORDER BLOCK LOGIC

Do not mark every last opposite candle as an Order Block.

A valid Order Block must have:

Liquidity Event
Order Block Candle
Strong Displacement
Break of Structure
Fair Value Gap

Core model:

Liquidity Sweep -> OB Candle -> Displacement -> BOS -> FVG

BULLISH ORDER BLOCK

Bullish OB logic:

Price sweeps liquidity below a previous low or swing low
Then there is a bearish or base candle
Then strong bullish displacement
Then bullish BOS
Then bullish FVG

Only after these conditions should the candle become:

VALID BULLISH ORDER BLOCK

BEARISH ORDER BLOCK

Bearish OB logic:

Price sweeps liquidity above a previous high or swing high
Then there is a bullish or base candle
Then strong bearish displacement
Then bearish BOS
Then bearish FVG

Only after these conditions should the candle become:

VALID BEARISH ORDER BLOCK

LIQUIDITY SWEEP

Bullish setup:

Price sweeps below a previous Swing Low
Then reverses upward

Bearish setup:

Price sweeps above a previous Swing High
Then reverses downward

Required settings:

Liquidity Lookback
Liquidity Swing Length
Minimum Sweep Distance
Require Close Back Inside ON/OFF

BREAK OF STRUCTURE

Use meaningful market structure.

Do not count every small candle break.

Use Swing High and Swing Low.

Bullish BOS:

Close above previous valid Swing High

Bearish BOS:

Close below previous valid Swing Low

Required settings:

Structure Swing Length
BOS Confirmation

Options:

Close
Wick

Default:

Close

FAIR VALUE GAP

Use standard 3-candle FVG logic.

Bullish FVG:

Low of Candle 3 > High of Candle 1

Bearish FVG:

High of Candle 3 < Low of Candle 1

The FVG does not need to be inside the Order Block.

It must be created by the same displacement from the Order Block.

Required settings:

Minimum FVG Size
FVG Size Mode

Options:

ATR
Points

REACTION ZONE + ORDER BLOCK MERGING

This is very important.

If the same candle qualifies as both:

Reaction Zone
and
Valid Order Block

OR

If both zones overlap

OR

If both zones are very close

Then do NOT draw two zones.

Merge them into ONE zone.

Label:

OB + REACTION

Required setting:

Merge Distance x ATR

Suggested default:

0.10 to 0.20 ATR

COMBINED ZONE BOUNDARIES

Add setting:

Combined Zone Boundary Mode

Options:

Order Block Boundaries
Reaction Zone Boundaries
Union of Both

Recommended default:

Order Block Boundaries

ZONE INVALIDATION

The zone must NOT disappear after the first retest.

The zone should remain visible after multiple retests.

Default:

Keep Zone After Retests = TRUE

Demand zone invalidation:

Close below zone bottom minus buffer

Supply zone invalidation:

Close above zone top plus buffer

Required settings:

Zone Invalidation

Options:

Close
Wick

Default:

Close

Also:

Invalidation Buffer x ATR

Recommended:

0.05 to 0.10 ATR

RETESTS

Count retests but do not remove the zone because of a retest.

Possible display:

FRESH
R1
R2
R3

Retest display should be optional.

ZONE STRENGTH SCORE

Each zone should receive an internal score from 0 to 100.

This is NOT a guaranteed probability.

It is only a ranking score.

Score should consider:

Strength of displacement
Total departure in ATR
Strong impulse candle
Base candle quality
Base candle size
Liquidity Sweep
BOS quality
FVG presence
FVG size
Freshness
Number of retests
Distance price traveled away
Reaction only
Valid Order Block
OB + REACTION confluence

Suggested ranking:

OB + REACTION
higher than
Validated OB
higher than
Strong Reaction Zone

SCALPING MODE

The indicator is mainly for:

M1
M3
M5
M15

It must be sensitive enough to show useful scalping zones.

Do not make the conditions too strict.

Do not mark every minor candle either.

Optional presets:

Aggressive Scalping
Balanced Scalping
Strict

NUMBER OF ZONES

Do not limit the indicator to only one Demand zone and one Supply zone.

I want all valid important zones.

But do not fill the chart with low-quality zones.

Required settings:

Max Demand Zones
Max Supply Zones

Recommended default:

5 Demand
5 Supply

Allow up to:

10 to 15

If maximum zones are reached:

Remove the weakest zone
Do NOT simply remove the oldest zone

NEARBY ZONE FILTER

If two zones are very close:

Merge them
or
Keep only the stronger one

Do not draw duplicate or almost identical zones.

Required setting:

Merge Nearby Zones x ATR

DISPLAY

Demand Zone:

Green

Supply Zone:

Red

Valid Order Block:

Different shade or label OB

Combined Zone:

OB + REACTION

Possible label:

OB + REACTION 91 M5

Display options:

Show Labels
Show Score
Show Retest Count
Show Source Timeframe

Do NOT display:

Buy Signal
Sell Signal
TP
SL
Entry
Dashboard
Liquidity labels everywhere
BOS labels everywhere
FVG boxes everywhere

Liquidity, BOS and FVG can be used internally only for validation.

REQUIRED INPUTS

ATR Length
Bars After Base To Confirm
Minimum Departure x ATR
Minimum Impulse Body x ATR
Minimum Directional Candle Ratio
Maximum Base Range x ATR
Maximum Base Body / Range
Accepted Base Candle Type
Minimum Zone Strength
Liquidity Lookback
Liquidity Swing Length
Minimum Liquidity Sweep
Structure Swing Length
BOS Close/Wick
Require BOS
Require Liquidity Sweep
Require FVG
Minimum FVG Size
FVG Size Mode ATR/Points
Zone Boundaries
Merge Nearby Zones x ATR
OB + Reaction Merge Distance
Combined Zone Boundary Mode
Max Demand Zones
Max Supply Zones
Zone Invalidation Close/Wick
Invalidation Buffer x ATR
Keep Zone After Retests
Show Labels
Show Strength Score
Show Retest Count
Show Source Timeframe

FINAL LOGIC

Reaction Zone:

Small or Opposite BASE Candle
-> Strong Displacement
-> Reaction Zone

Bullish Valid Order Block:

Sell-Side Liquidity Sweep
-> Bearish/Base OB Candle
-> Bullish Displacement
-> Bullish BOS
-> Bullish FVG
-> Valid Bullish OB

Bearish Valid Order Block:

Buy-Side Liquidity Sweep
-> Bullish/Base OB Candle
-> Bearish Displacement
-> Bearish BOS
-> Bearish FVG
-> Valid Bearish OB

Highest Confluence:

Reaction Zone overlaps Valid Order Block
-> Merge into ONE zone
-> OB + REACTION

MOST IMPORTANT REQUIREMENT

Each timeframe must calculate zones independently.

M1 = M1 zones only
M5 = M5 zones only
M15 = M15 zones only
M30 = M30 zones only
H1 = H1 zones only
H4 = H4 zones only

Changing the chart timeframe must recalculate everything using the new current timeframe.

No zones from other timeframes should appear unless Multi-Timeframe mode is manually enabled in the future.
pine script trading algorithmic trading tradingview forex trading
Apply on Freelancer →

Project sourced from Freelancer.com. Applications happen directly on the original platform — we never collect your data.