The Realtime Supply and Demand indicator captures the core function of every market – Supply and Demand.
Supply and Demand is the reason why the markets move!
When Supply is bigger than Demand – the price will fall
When Demand is bigger than Supply – the price will rise
When Supply and Demand is the same or “in balance” the price will not move either way. This Realtime Supply and Demand indicator identifies areas where Supply and Demand is out of balance and when these areas apply there are great trading opportunities.
All calculation are made in Real-time, the indicator does not calculate or plot historical zones. Every zone which gets “run over” by the price will disappear from the chart and will not repaint. As we track real time buying and selling zones new zones will be plotted as soon as the indicator detects an imbalance of buyers and sellers and other zones will disappear as they are not of further interest because the buying and selling will take place at a different area.
The indicator can be used in any market and on any timeframe!
By default the indicator will calculate on the chart period. It is possible to set the indicator to any time based period you like (when using any non-timeframe chart you need to change the TimeframeType and the TimeframeValue, see settings below).
The chart period can be any time-, price- or volume-based period.
The calculation of the indicator needs to be on a time based period like minute, hour, day, week.
When using a price-, or volume based chart period like Tick, Range, Renko or Volume you need to set the calculation period of the indicator to a time base period. Just choose in the indicator settings menu which time period the supply and demand should be calculated on. These zones will then plotted on the chart of your choice.
The indicator can be drawn multiple times on the same chart and run with different settings regarding the calculation time-frame as well as colors and plots. That allows you to track Supply and Demand of several time-frames on one chart.
How to use the indicator for your trading – key facts:
• Looking for a revers when price hits Strong Supply or Demand zones
• When price rises and comes in an area of Strong Supply – possible sell opportunity
• When price falls and comes in an area of Strong Demand – possible buy opportunity
• The thicker the zones (price range between high to low of the zone), the stronger the potential Supply or Demand
• The first touch of a zone tends to be the most effective entry as at this particular moment the imbalance of Supply and Demand is the biggest. Next touches have smaller odds to provide the price action we are looking for (only want to buy the first pullback to the Demand zone) and vice versa with the Supply zone.
• Zones are react time Supply and Demand and do not reprint – When a zone is taken out (price moves completely through the zones) it will stay out
• Stops can be placed on the other side of the zone. When the price breaks through that zone the odds are low to see a pullback. That’s why we do not want to be involved anymore. Often it is possible to use a really tight stop.
• The indicator is completely customizable and can be used on any time frame according your trading style. We found the best performance can be reached on 10 – 60 minute periods as well as on 4 hour and daily charts.
NinjaScript and BloodHound Ready
The values of the most recent supply and demand zones are exposed to use in your automated trading strategy.
A complete description of the values and the syntax to call are in the indicator manual you will get with the indicator purchase.
Important: This is “just” a Strategy Ready indicator and NOT a complete automated trading system. When you are not able to program your own trading strategy via NinjaScript or BloodHound, we offer custom programming services. Please send us your request to firstname.lastname@example.org