Supply/Demand Zones

Overview

The Supply/Demand Zones feature automatically identifies and displays key price areas where strong buying or selling pressure has historically occurred. These zones represent significant levels of supply (resistance) and demand (support) and often act as powerful predictors of future price reversals.

The indicator uses a sophisticated proprietary dual-system approach to detect these zones, analyzing volume, order flow (delta), and price action to identify the most significant levels.

Settings

You can customize the Supply/Demand Zones detection to fit your analysis style, with options for multi-timeframe analysis and advanced visual filtering.

Setting	Description
Length	Sets the lookback period for the zone detection algorithm. A lower number is more responsive to recent price action, while a higher number focuses on more significant, longer-term zones.
Maximum Supply/Demand Zones	Limits the number of zones displayed on the chart to keep your analysis clean and focused on the most relevant levels.
Supply/Demand Zones 1 & 2	Allows you to enable and configure up to two different timeframes for zone detection, enabling multi-timeframe analysis.
Strength Visuals	When enabled, the size of the zone boxes will dynamically adjust based on their significance, with larger boxes representing stronger zones.
Hide Overlaps	When enabled, the indicator will hide overlapping zones to provide a cleaner and less cluttered chart.
Quality Filter	Enables a quality filter to remove lower-probability zones. You can set the Quality Filter Level to control how strict the filtering is.
Key Level	Displays a key price level within each zone. You can choose between the Half (midpoint) of the zone or a Volume-based level.
Adaptive Transparency	When enabled, the transparency of the zones will dynamically adjust based on their significance. More significant zones will appear more solid and less transparent.
Show Text / Text Color	Controls the display, size, and color of the text labels within the zones.

Best Practices & Usage

• Identify High-Probability Reversal Zones: Supply and Demand zones are excellent tools for spotting potential market reversals. Look for buying opportunities in demand zones (support) and selling opportunities in supply zones (resistance).

• Use Multiple Timeframes: For higher-confidence setups, enable both Supply/Demand Zones 1 and Supply/Demand Zones 2 to look for a confluence of zones from different timeframes at the same price level.

• Filter for Quality: It is recommended to keep the Quality Filter enabled with a level of 3 or higher. This will help you filter out weaker, less reliable zones and focus only on the most significant areas of supply and demand.

• Combine with Other Analysis: Supply and Demand zones are most powerful when used as a confirmation tool. A buy signal from the main indicator that occurs within a strong demand zone is a much higher-probability setup than a signal that appears in isolation.