These four blocks read swing highs and lows exactly as the swing blocks do, with the number of candles each side that you choose, and then look at what later candles do around them.
Equal highs and lows
This block remembers each swing for a number of candles you choose. It fires when a newly confirmed swing high sits within a tolerance you set, in ticks, of an earlier swing high it still remembers (a short), or a new swing low within the tolerance of an earlier swing low (a long). A tolerance of zero means exactly the same price. A swing that a later candle has closed beyond is forgotten.
Liquidity sweep
This block also remembers swings for a number of candles you choose. It fires when a candle's wick trades below a remembered swing low and the candle then closes back above it (a long), or its wick trades above a remembered swing high and it closes back below (a short). A candle that closes beyond the swing has broken it, not swept it, and the swing is forgotten. Each swing is swept once. A candle that sweeps a high and a low together gives no signal.
Order block
When a candle closes above the latest swing high, the order block is the last candle before it that closed below its open, no older than that swing high. A close below the latest swing low mirrors it: the last candle that closed above its open. You choose whether the zone is that candle's whole range, wick to wick, or only its body.
The block fires when a later candle reaches back into the zone without closing through its far side: a long from a zone left by a break upward, a short from one left by a break downward. Each zone fires once, and is forgotten after the number of candles you set.
Breaker block
If a candle closes through an order block's far side instead, the order block has failed. It becomes a breaker block facing the other way, remembered afresh for the same number of candles. This block fires when a later candle reaches back into the breaker without closing through its other side. A breaker made from an upward break's zone is a short; from a downward break's zone, a long.
Where the stop goes
- The far side of the zone and the middle of the zone, on the order block and breaker blocks.
- The pattern's extreme. On equal highs and lows, the higher of the two highs (or the lower of the two lows). On the other three, the high or low of the candle that fired.
- A swing window. The lowest low or highest high of a number of candles you state.
You can add a buffer of ticks beyond any of them.
What can go wrong
People draw order blocks and breaker blocks in different ways. These blocks draw them exactly as described above, and nothing else, so read the rule before comparing them with a chart marked by hand.