Volumetric Order Blocks and Range Filter indicators form a strategy aims to identify high-probability trade entries based on volume dynamics and price action.
Step-by-Step Setup on TradingView
Add the Volumetric Order Blocks Indicator:
Go to TradingView and open the Indicators search tab.
Type: Order Blocks by Flux Chart.
Select Order Blocks by Flux Charts from the list.
Go to the settings of the Volumetric Order Block indicator.
Adjust the Zone and Validation setting to Close.
Leave all other settings at their default values.
Click OK to confirm the changes.
Add the Range Filter Buy and Sell 5 Minutes Indicator:
In the Indicators search tab, type Range Filter Buy and Sell 5 Minutes.
Select Range Filter Buy and Sell 5 Minutes from Phantom Trader.
Configure the indicator as follows:
In the Input tab, set the Range Multiplier value to 1.8.
In the Style tab, remove all marks except for the Buy signal and Sell signal marks.
Change the color of the Buy signal to green and the Sell signal to red.
Click OK to confirm the changes.
Trading Strategy Rules
1. Buy Order Setup:
Identify Bullish Order Block:
Wait for a green bullish order block area to form on the chart.
price retest and rejection:
Observe the price action to see if the candlestick retests the bullish volumetric order block area and gets rejected.
Confirmation with Range Filter Indicator:
Wait for a green Buy signal from the Range Filter Buy and Sell 5 Minutes indicator.
Ensure the candlestick forming the Buy signal is bullish, and the volume within the order block area is dominated by green bars.
Entry and Risk Management:
Place a buy order after the bullish candlestick closes.
Set a stop loss below the bullish volumetric order block area.
Use a take profit target with a risk-reward ratio of 1:1.5.
2. Sell Order Setup:
Identify Bearish Order Block:
Wait for a red bearish order block area to form on the chart.
Price Retest and Rejection:
Observe the price action to see if the candlestick retests the bearish volumetric order block area and gets rejected.
Confirmation with Range Filter Indicator:
Wait for a red Sell signal from the Range Filter Buy and Sell 5 Minutes indicator.
Ensure the candlestick forming the Sell signal is bearish, and the volume within the order block area is dominated by red bars.
Entry and Risk Management:
Place a sell order after the bearish candlestick closes.
Set a stop loss above the bearish volumetric order block area.
Use a take profit target with a risk-reward ratio of 1:1.5.
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