Order Block Locator Indicator MT5
Platform: MT5 Type: Market Levels Last update: September 5, 2026The Order Block Locator Indicator for MT5 identifies buy and sell zones by spotting points of price exhaustion.
These zones, known as order blocks, mark areas where large orders were likely executed by major market participants like banks, hedge funds and other financial institutions.
Example chart:
How to use the Order Block Locator Indicator for MT5?
Order blocks mark zones where major institutions (especially banks) accumulate large orders in the market.
Rather than placing one massive order and risking a big market impact, these players break their orders into smaller blocks, stepping back between each one to avoid disrupting price too much.
Once complete, this activity often leaves behind a footprint strong enough to trigger a sustained bullish or bearish move. Since these zones reflect real institutional positioning, they act as useful markers for potential trend reversals or breakouts.
Trading bullish setup
When price re-enters a bullish order block, it often signals a potential reversal to the upside. Look for a buy entry by analyzing price action within the zone, treating it as a strong support area.
Place your stop loss below the cluster of orders or the preceding swing low and set your take profit based on your preferred risk-to-reward ratio or the next visible resistance level.
Trading bearish setup
The same logic applies in reverse for bearish order blocks. Look for a sell entry as price reacts within the zone, treating it as a strong resistance area.
Place your stop loss above the cluster or the preceding swing high and take profit based on your risk-to-reward ratio or the next visible support level.
A few things to keep in mind
An order block is a zone, not a single price point, so give yourself room to assess price action within that range rather than looking for one exact level.
If price breaks through an order block against the prevailing trend, treat that as a possible reversal signal.
Order blocks that align with the existing trend tend to offer better, more reliable risk-to-reward opportunities than those against it.
Understanding the order block search algorithms
The Order Block Locator offers three main algorithms for identifying order blocks:
- Simple fractal search: Looks for order blocks around fractal highs and lows, based on a set number of candles surrounding the fractal (e.g., 3 candles on each side, plus the extremum, for a 7-candle fractal). Since it only works with completed fractal patterns, this method is non-repainting.
- Naive fractal movers: A faster variation of the fractal method, using a smaller candle count (typically 2/3 of the standard value) to catch order blocks where price is already moving away quickly.
- Candle transition: Looks for a shift from bullish to bearish candles (or vice versa), followed by several candles continuing in that new direction. You can require the shift candle to be an engulfing candle for a stricter filter.
Bottom line
The Order Block Locator Indicator for MT5 gives you a structured way to spot the footprints big institutions leave behind, but the algorithm you choose shapes how those footprints get detected.
