The Order Block Forex indicator (MT4) is a free, powerful price action tool that helps you find possible trend reversals with the help of order blocks.
This indicator displays all buy & sell order blocks directly on the chart.
In essence, order blocks identify the best possible areas of support (blue block) and resistance (red block).
The Order Block indicator comes with all kinds of alerts to notify you as soon as a new order block appears on the chart.
Key Points
- Displays order blocks.
- Can be used for both trade entry and exit.
- Works for any trade style.
- Well worth adding to your indicator collection.
This indicator can work together with any existing trading strategy or system as a simple trend confirmation technical tool.
Free Download
Download the “order-block-forex-indicator.ex4” MT4 indicator
Indicator Chart (EUR/USD M1)
The EUR/USD M1 chart below shows the Order Block Forex indicator in action.
Basic Trading Signals
Signals from the Order Block indicator for Metatrader 4 are easy to interpret and goes as follows:
BUY:
- Open a buy trade when price trades in the blue colored order block.
- Place your stop loss below the low of the blue order block.
- Take profit at the top of the red order block.
SELL:
- Open a sell trade when price trades in the red colored order block.
- Place your stop loss above the high of the red order block.
- Take profit at the low of the blue order block.
Order Block + MACD Trend Histogram MT4 Forex Strategy
This Forex strategy combines the Order Block Forex Indicator for MT4 with the MACD Trend Histogram Bars Indicator for MT4.
The Order Block indicator highlights key support and resistance levels with blue (support) and red (resistance) blocks.
The MACD Trend Histogram provides momentum confirmation with green bars for bullish signals and red bars for bearish signals.
This strategy is ideal for M5, M15, and H1 charts for day trading and short-term trend trades.
Buy Entry Rules
- Identify a blue order block (support) on the chart.
- Confirm that the MACD Trend Histogram shows green bars, signaling bullish momentum.
- Enter a buy trade at the close of the confirmation candle within or near the support block.
- Set a stop loss just below the blue order block or recent swing low.
- Take profit at the nearest red order block (resistance) or when the MACD histogram turns red.
Sell Entry Rules
- Identify a red order block (resistance) on the chart.
- Confirm that the MACD Trend Histogram shows red bars, signaling bearish momentum.
- Enter a sell trade at the close of the confirmation candle near the resistance block.
- Set a stop loss just above the red order block or recent swing high.
- Take profit at the nearest blue order block (support) or when the MACD histogram turns green.
Advantages
- Combines key support/resistance levels with momentum confirmation for higher accuracy.
- Adaptable to multiple timeframes and currency pairs.
- Helps prevent trading against strong supply or demand zones.
Drawbacks
- Order blocks may occasionally fail in strong trending moves that break key levels.
Case Study 1 – EUR/JPY (M15 Chart)
On the EUR/JPY M15 chart, a blue order block formed at 142.50, indicating strong support.
The MACD Trend Histogram turned green, confirming bullish momentum.
A buy trade was entered at 142.52 with a 10-pip stop loss below the support block.
Price rallied to the next red order block at 143.10 within 45 minutes, generating +58 pips profit.
Case Study 2 – GBP/USD (M5 Chart)
On GBP/USD, a red order block appeared at 1.2730, signaling resistance.
The MACD histogram displayed red bars, confirming bearish momentum.
A sell trade was opened at 1.2728 with a stop loss at 1.2735.
The price dropped to the next blue order block at 1.2685, producing a +43 pips profit within 30 minutes.
The combination of resistance and momentum helped identify a strong short-term reversal.
Strategy Tips
- Focus on major pairs with high liquidity to reduce slippage.
- Use multiple timeframes to confirm that the trend aligns with the order block levels.
- Avoid trading during major news releases that can break order blocks unexpectedly.
- Consider scaling out of positions near strong order block zones to lock in profits.
- Maintain strict risk management, keeping risk per trade between 1–2% of account balance.
The Order Block + MACD Trend Histogram MT4 strategy combines price structure with momentum signals, providing a disciplined approach to day trading.
Forex traders can identify high-probability entries around key supply and demand zones while confirming momentum, making it an effective system for short-term profits.
Download Now
Download the “order-block-forex-indicator.ex4” MT4 indicator
Adjustable Parameters & Settings
Line identifier, alerts ON, alerts ON current, alerts message, alerts sound, alerts notify, alerts email, colors, width, style.
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Supported currency pairs: Any
Trading Platform: Metatrader 4 (MT4)
Time Frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: System
