Supply and Demand Zones (not support and resistance)

[t1brewster]

Hello,

Im looking for an indicator that will plot supply and demand zones. Please do not confuse with support and resistance. I have included examples of what im hoping to acheive. The main difference between the 2 is when the zone is hit there is a huge spike or drop in price. Please let me know if you can help. Good video for info on the difference: http://www.youtube.com/watch?v=i4Ewg8kQEBA

[Apprentice]

Can you specify how such Spike is defined.

[t1brewster]

Its difficult to put in words. It is much easier to see. As you look at the chart you can see the long candles from the reaction on any time frame. Maybe the indicator can measure the % in price change from the previous candle/price and draw the zone. One way I look for it now is by looking for engulfing candles. Please let me know if you need more info.

Thanks!

[Alexander.Gettinger]

Please try this indicator:

Supply_Demand_Zone.lua

(4.8 KiB) Downloaded 433 times

[jacryptoking]

Its difficult to put in words. It is much easier to see. As you look at the chart you can see the long candles from the reaction on any time frame. Maybe the indicator can measure the % in price change from the previous candle/price and draw the zone. One way I look for it now is by looking for engulfing candles. Please let me know if you need more info.

Thanks!

You need to add break of market structure and significant high and low using fractal swing high and low to determine the Demand and supply with imbalance.


A higher High is resistance level until the higher low is broken then higher high form supply zone.


This you can use ICT concept BMS and RTO , CHOCH to add characters to identify Demand and Supply zones. Equal Highs/lows and fractal swings are resistance and support.

The engulfing imbalances is demand and supply zones.