What Makes an Order Block a Continuation Order Block?
Not every opposing candle is automatically an order block.
A bearish candle inside a bullish move—or a bullish candle inside a bearish move—may look important, but candle colour alone does not define its structural role.
A continuation order block requires three things:
• a completed structural sequence;
• a defined origin candle;
• displacement or immediate-FVG qualification.
────────────────────────────
1. CHoCH STARTS THE TRANSITION
────────────────────────────
The sequence begins when a completed structure-timeframe close breaks the latest confirmed opposing swing and changes the structural direction.
This event is marked as CHoCH.
CHoCH establishes the transition, but it does not complete the continuation model. Further same-direction structure breaks are still required.
────────────────────────────
2. MODEL A AND MODEL B
────────────────────────────
The script provides two continuation models.
MODEL B — CHoCH + FIRST BOS
1. CHoCH changes the structural direction.
2. The first same-direction BOS completes the sequence.
3. That break is displayed as CONT BOS.
Model B does not contain an intermediate BUILD BOS stage.
MODEL A — CHoCH + TWO BOS
1. CHoCH changes the structural direction.
2. The first same-direction BOS is displayed as BUILD BOS.
3. The second same-direction BOS completes the sequence and is displayed as CONT BOS.
Model A therefore requires one additional confirmed structure break before the continuation sequence is complete.
────────────────────────────
3. SELECTING THE ORIGIN CANDLE
────────────────────────────
After the required CONT BOS is confirmed, the script searches backward through completed structure-timeframe candles.
For a bullish continuation zone, it selects the most recent bearish candle.
For a bearish continuation zone, it selects the most recent bullish candle.
The complete high-to-low range of that candle becomes the candidate zone.
The zone is not reduced to the candle body, and an earlier candle is not selected simply because it looks visually cleaner.
This is why every opposing candle is not plotted. The candle must be connected to a completed continuation sequence.
────────────────────────────
4. DISPLACEMENT AND IMMEDIATE FVG
────────────────────────────
Completing the structure sequence does not automatically create a zone.
The selected origin candle must also pass the active qualification rule.
Displacement is measured relative to ATR from the structure timeframe.
The script also checks for an immediate three-candle FVG anchored at the selected origin candle.
When “Require both displacement and immediate FVG” is disabled:
• displacement OR immediate FVG can qualify the zone.
When the setting is enabled:
• displacement AND immediate FVG are both required.
This is a qualification rule, not a probability score.
────────────────────────────
5. WHEN THE ZONE BECOMES CONFIRMED
────────────────────────────
The origin candle may appear before the continuation break, but the zone is not confirmed at that earlier moment.
The zone becomes known only after:
1. the selected continuation sequence completes;
2. the origin candle is identified;
3. the displacement/FVG condition passes.
The box therefore begins when CONT BOS confirms the zone.
It is not projected backward as though the zone had already been known when the origin candle first appeared.
────────────────────────────
6. ZONE LIFECYCLE
────────────────────────────
A newly confirmed zone begins as FRESH.
The script then records how the zone develops.
TOUCHED
Price reaches and overlaps the zone for the first time.
A touch changes the zone from fresh to touched, but does not automatically deactivate it.
GAP-THROUGH
The first interaction bar moves completely beyond the zone without overlapping it.
STRUCTURE INVALIDATION
A bullish zone is invalidated when a completed structure-timeframe candle closes below its lower boundary.
A bearish zone is invalidated when a completed structure-timeframe candle closes above its upper boundary.
AGE EXPIRY
The zone becomes inactive after it exceeds the selected maximum age in completed structure bars.
SUPERSESSION
A newer qualifying zone in the same direction replaces the previous active zone.
STRUCTURE REVERSAL
When the structural direction reverses, the active directional zone is switched off.
Older inactive zones may remain visible as faded historical boxes.
────────────────────────────
7. WORKED EXAMPLE — BEARISH MODEL B
────────────────────────────
Consider a 1-hour chart using 4-hour structure data.
1. A completed 4-hour close breaks the latest confirmed opposing swing and creates bearish CHoCH.
2. A later completed 4-hour close breaks the next same-direction swing.
3. Because Model B requires CHoCH plus the first BOS, that second event is displayed as CONT BOS.
4. The script searches backward for the most recent bullish 4-hour candle.
5. The full high-to-low range of that candle becomes the bearish candidate zone.
6. The candidate is displayed only if the displacement or immediate-FVG rule passes.
7. The zone begins when the CONT BOS is confirmed.
8. The script then records whether the zone remains fresh, becomes touched, or is later deactivated through reversal, invalidation, expiry, or supersession.
The CONT BOS line and the order-block box represent different information:
• CONT BOS shows which structural level was broken.
• The box shows where the qualifying continuation move originated.
────────────────────────────
8. A VALID ZONE IS NOT A FORECAST
────────────────────────────
A valid continuation zone means that the documented structural and qualification conditions were completed.
It does not establish that price will return to the zone.
It does not establish that the zone will hold.
It is not an entry, target, stop loss, probability estimate, or trade signal.
Its purpose is to make the continuation sequence, origin zone, and later lifecycle visible for chart review.
On your current chart, can you identify the CHoCH, the break that completed the selected model, and the opposing candle that became the continuation zone?