Range supply and demand

The Range supply and demand indicator identifies and projects key supply and demand zones based on high and low price levels from a user-defined higher timeframe.

Usage

This tool is designed to highlight areas of institutional interest by mapping higher timeframe (HTF) boundaries onto the current chart. Traders can use these zones to identify potential reversal points or areas of consolidation. The script specifically looks for the penultimate bar of the selected higher timeframe to establish its range.

When the current price action aligns with the high or low of that specific HTF bar, the indicator plots a supply (red) or demand (green) zone. These zones extend to the right, providing a visual reference for future price interactions. A common application is to set the timeframe to Monthly or Weekly while trading on Daily or 4-hour charts to see where major long-term ranges are established.

Details

The script utilizes the request.security function with a lookahead setting to accurately fetch the high and low limits of a specific higher timeframe bar. It specifically targets the bar prior to the current active HTF bar to ensure the zone is based on completed or near-complete historical data rather than fluctuating live data.

The logic identifies:

• Supply Zones: Formed when the current timeframe's high matches the HTF high.
• Demand Zones: Formed when the current timeframe's low matches the HTF low.

The script also includes built-in alert conditions that trigger when price enters these established zones, allowing for timely decision-making.

Settings

• Timeframe: Determines the higher timeframe used to calculate the supply and demand boundaries (e.g., Monthly, Weekly, Daily).
• Show: A toggle to display the name of the selected higher timeframe as a label within the plotted zones.

FAQ

How do I use the Range supply and demand indicator?

You can use it to identify significant price ceilings and floors based on higher timeframe data. Price entering a supply zone may indicate a potential sell-off, while entering a demand zone may indicate a buying opportunity.

Can I change the colors of the zones?

The current version uses standard red for supply and green for demand to ensure clarity, though these can be modified within the script's source code if necessary.

How can I access Range supply and demand?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.