Have you ever wondered why prices sometimes explode out of nowhere — or bounce back hard from a seemingly random zone on the chart? What if you could spot the footprints of big institutions, the “smart money,” and surf their wave rather than get wiped out in the chop? That’s where the “Price Action Volumetric Order Blocks” indicator comes in.
In this post, I’m gonna walk you through what volumetric order blocks are, how the indicator works, how to use it in your trading, and pitfalls to watch out for. I try to keep it real for you, no fluff.
H1: What Are Order Blocks — And Why Volumetric Matters
First, let’s break down the basic idea of an order block.
H2: Order Blocks — The Hidden Institutional Zones
You probably know support and resistance zones, right? But order blocks are a bit deeper. An order block is a price zone where lots of big players (institutions, banks, large funds) likely placed their buy or sell orders. When enough of those orders accumulate and get filled, price tends to react strongly to that level in the future. ZitaPlus+2EBC Financial Group+2
Concretely:
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A bullish order block is often the last bearish candle before a strong upward move. ZitaPlus+2LiteFinance+2
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A bearish order block is often the last bullish candle before a strong drop. ZitaPlus+1
These zones don’t always behave like simple support/resistance — they reflect where “smart money” stepped in, which makes them more powerful (or so many traders believe). EBC Financial Group+2docs.luxalgo.com+2
H2: Why “Volumetric” Changes the Game
Now, ordinary order block concepts rely mostly on price action/candlestick structure plus maybe context. But when you add volume data to the mix, you get a richer, harder-to-ignore signal. That’s what “volumetric order blocks” aim for.
The “volume” part tries to capture how much trading happened in that zone. More volume often means more institutional participation, which — in theory — makes that order block stronger. docs.luxalgo.com+2TradingView+2
So instead of guessing: “looks like demand here,” you get a quantified level — a zone backed by real volume. That’s the appeal.
H1: How the “Price Action Volumetric Order Blocks” Indicator Works
If you decide to use the indicator named Price Action Volumetric Order Blocks (on platforms like TradingView for example), here’s what it does under the hood — and what you as a trader should pay attention to.
H2: Core Logic Behind the Indicator
This indicator combines traditional price-action analysis (swing highs/lows, last opposite candle before a breakout) with volume analysis to highlight zones where price may react in the future. TradingView+2Flux Charts+2
Main features / logic steps:
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It tracks swing points (highs and lows) to find where the market turned strongly — those swings often mark potential origins of institutional orders. TradingView+1
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It calculates the volume that occurred around those swings to estimate the “strength” of the order block. High volume → stronger block; low volume → weaker block. docs.luxalgo.com+2MQL5+2
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It visually marks bullish order blocks (demand zones) and bearish order blocks (supply zones) on the chart — often as colored rectangles (teal/green for bullish, red for bearish). TradingView+2TradingView+2
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It lets you choose how strict you want the “violation” or “invalidation” rule to be: a block can be invalidated when price closes beyond it (“close” violation) or even if price’s wick touches beyond (“wick” violation), depending on your settings. TradingView+1
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There are customization options — for swing-length (which defines how far back to look for swings), how many recent blocks to show, overlapping-block visibility, and more. TradingView+1
H2: What the Indicator Tells You — And What It Doesn’t
What it gives you:
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Clear zones of possible supply or demand, backed not just by price but by volume — which tends to reflect real interest by large players.
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A dynamic support/resistance map — as price moves and invalidates blocks, the indicator automatically updates which zones are still “valid.” This helps you stay aligned with market structure. ProRealCode+1
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A quantitative edge: instead of guessing or eyeballing, you get numerical backing (volume-based strength) which helps you judge whether a block is “strong enough” to trade, or maybe better ignored. docs.luxalgo.com+1
What it doesn’t guarantee:
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It doesn’t guarantee a bounce or reversal from every block. Price can break through strong blocks — especially in volatile markets or when there’s new news.
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It doesn’t predict direction by itself. Volume + order blocks give zones, not sure-fire signals. You still need confirmations like market structure breaks, candlestick rejections, or other tools.
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Sometimes blocks may overlap or cluster. That can create confusion if you rely too heavily on every block showing.
H1: How to Use Volumetric Order Blocks in Your Trading (Real-World Approach)
Alright, so you know what it is. Now, how do you actually use this in trading. Below are some practical strategies, tips, and a sample workflow.
H2: Use Cases & Strategy Ideas
Here are a few ways traders (you may) use volumetric order blocks:
List of use cases:
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Support & Resistance entries: Wait for price to return to a bullish block (demand), watch for a bullish rejection (pin-bar, engulfing, wick), then enter long. Similarly, for bearish blocks (supply) for short entries.
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Breakout / Break-of-Structure confirmation: When price breaks through a block (invalidates it), that may signal continuation in direction of the break. Use it together with market structure or trend confirmation.
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Swing trading on higher timeframes: Use blocks formed on higher TF (like H4, Daily) as bigger zones of interest — more reliable, because institutional moves are more visible there. Pocket Option+1
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Confluence trading: Use volumetric order blocks + other tools (trend lines, volume profiles, liquidity zones, etc.) to build stronger setups.
H2: Example Workflow (From Screen to Trade)
Here’s how you might trade using volumetric order blocks. Imagine you trade EUR/USD or a stock, or crypto — it works across assets.
| Step | What You Do |
|---|---|
| Scan higher timeframe (H4 / Daily) | Identify recent bullish/bearish Volumetric Order Blocks on the chart — mark them as demand/supply zones |
| Wait for price to approach a block | Be patient — don’t jump in until price is reasonably close |
| Check for confirmation on lower timeframe (15 min / 1H / 4H) | Look for rejection candles: pin bars, engulfing, or structural support/resistance alignment |
| Confirm volume & strength (optional but ideal) | Ensure block had high volume originally (from indicator), or see fresh volume spike on retest indicating interest |
| Enter trade (long or short) | Set stop-loss just beyond block boundary (low for bullish block, high for bearish block) |
| Plan exit / take profit | Target previous swing high/low, major liquidity levels, or next block zone |
| Manage risk & position size | As usual — don’t overleverage; treat blocks as zones not absolute levels |
H2: What I Like — And What to Watch Out For
Pros:
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Gives you a more objective setup than drawing zones manually
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Helps spot “real” zones where big money likely entered — reduces noise
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Works across markets (forex, stocks, crypto), timeframes, and supports both swing and intraday trading
Cons / Risks:
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On low volume assets or illiquid markets, volumetric blocks may be misleading or weak
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In strong trending markets, price may bypass blocks completely — no bounce, no reaction
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Overlapping blocks may create “zone clutter,” making the chart messy and confusing
H1: Why Price Action + Volume Is the Sweet Spot for Smart Trading
If you think of trading as reading the “heartbeat” of the market, price action is like the rhythm, and volume is like the blood flow. Without volume, price just dances — may look nice, may be random. With volume, you roughly know if someone serious is behind those moves.
Using volumetric order blocks gives you a blend of structure (via price action) + real participation signal (via volume). That’s a more mature, informed way to trade compared to just eyeballing support/resistance or chasing breakout candles.
That’s why many veteran traders consider order blocks more advanced (and often more reliable) than conventional supply/demand zones. EBC Financial Group+2Flux Charts+2
H1: Mistakes to Avoid — Don’t Let This Become a Crutch
Before you dive in, here’s some “real talk” about pitfalls many newbies fall into when using volumetric order blocks
H2: Mistake — Treating Every Block as “Holy Ground”
Just because the indicator plotted a block does not mean price will react there every time. Markets move fast. News, sentiment, macro events can override “zones.”
H2: Mistake — Ignoring Market Context & Structure
If you try to trade a block in a chaotic market structure (no swing defined, no trend), chances are high you get chopped out. Always combine with market structure analysis, trend direction, and other confirmations (rejections, volume spikes, etc.)
H2: Mistake — Overloading the Chart
Showing too many blocks (especially overlapping ones) across multiple timeframes may cause confusion. What looks like “support” may just be a random cluster of weak blocks.
H2: Mistake — Relying On Volume Alone, Or On Price Alone
Volume + price action need to work together. Some “volume-supported” blocks are meaningless without a corresponding strong swing or structure. Others have nice price action but weak volume. Don’t treat either as a magic bullet.
H1: Real-World Considerations for Trading with Volumetric Order Blocks
When you start using the indicator in real life, there are real-world constraints and behaviors to account for.
H2: Timeframes Matter
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Higher timeframes (H4, Daily, Weekly) — order blocks here usually hold more weight because institutional orders show up more clearly and liquidity is larger.
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Lower timeframes (5min, 15min, 1H) — you can catch smaller intraday moves but blocks may be “weaker,” more subject to noise.
Best approach: use a multi-timeframe analysis — identify zones on higher TF, refine entries on lower TF. Pocket Option+2docs.luxalgo.com+2
H2: Volume Data Quality Can Vary
Depending on your broker or asset, volume data may be unreliable (especially in forex, where volume is sometimes tick volume or aggregated). In that case, volumetric blocks may mislead you.
In instruments with reliable volume (stocks, futures, crypto on good exchanges) — the indicator tends to produce more trustworthy signals.
H2: Combine — Don’t Rely Alone
Use volumetric order blocks as part of a bigger trading plan. Combine with:
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Market structure analysis (higher-high / lower-low, supply/demand context)
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Candlestick confirmations (pin bars, engulfing, rejection wicks)
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Risk management (stop-loss, position sizing)
If you treat this as a tool rather than a magic wand, you’re more likely to win.
H1: Table — Quick Comparison: Order Blocks vs Volumetric Order Blocks Indicator
| Feature / Approach | Classic Order Block (Price Action only) | Volumetric Order Block (Indicator + Volume) |
|---|---|---|
| Basis | Candlestick structure, last opposite candle before breakout | Price swings + Volume data + algorithmic detection |
| Strength Filter | Subjective — depends on trader’s judgment | Quantitative — based on volume levels and metrics |
| Visual Clarity | Requires manual drawing, prone to human error | Automatic plotting, consistent across charts |
| Reliability | Decent, but variable based on trader skill & context | Generally higher (if volume data is good) and more objective |
| Ease of use | Easy but needs discipline | Easy + less subjectivity, but still needs confirmation |
| Risk of noise / false signals | High (especially in messy markets) | Lower — volume filter helps screen out weak zones |
H1: FAQs — Frequently Asked Questions About Volumetric Order Blocks & Trading
Q: Are order blocks just the same as support/resistance or supply/demand zones?
Yes and no. On one hand, order blocks are a subset of supply/demand thinking — but they aim to be more precise. Instead of drawing broad zones, order blocks try to identify exact candles/zones where smart money likely entered — giving a more surgical edge. ZitaPlus+2EBC Financial Group+2
Q: Can this indicator work on any market (forex, stocks, crypto)?
In theory — yes. But reliability depends heavily on volume data quality. In stocks or crypto where volume data is transparent, volumetric blocks are more trustworthy. In some forex setups where volume is less reliable (e.g. tick volume), treat signals with caution.
Q: Does every order block lead to a bounce or reversal?
No. Not even close. Sometimes price will just slice through block zones, especially if broader market forces are at play (news, momentum, macro trends). Use blocks as zones of interest, not guarantees.
Q: What timeframes are best to use with volumetric OBs?
Higher timeframes (H4, Daily, Weekly) tend to produce stronger blocks — better for swing or position trading. Lower timeframes can be used for day trading or scalping, but expect more noise and weaker signals.
Q: Should I rely only on this indicator?
Definitely not. Use it as part of a bigger strategy. Combine with market structure analysis, candlestick confirmation, risk management — treat it as one tool among many.
H1: Conclusion — Is Volumetric Order Block Trading Worth It For You?
If you’re serious about Trading, using a tool like Price Action Volumetric Order Blocks can give you a real edge. It helps you move beyond the noise, spot where bigger players might have left their footprint, and plan trades around areas of potential liquidity / turning points.
But — and this is important — it’s not a “set and forget” magic tool. You still need to apply discipline, read market context, manage risk, and stay flexible. Markets are messy. Sometimes even the strongest-seeming zone gets blown out.
So if you treat volumetric order blocks as zones of interest, not guarantees; if you combine them with structure, volume context, confirmation — you may tilt the odds in your favor.
If you think about it as a map of where big money may have hidden, it’s one of the best maps you can use in your trading toolkit.