Supply and Demand Zones

The Supply and Demand Zones indicator automatically plots predetermined key levels and dynamically colors them based on price action to identify potential reversal or continuation areas. This tool is designed to provide intraday traders with institutional-grade levels for major indices like the S&P 500 and Nasdaq, complete with integrated trend filters.

Usage

The indicator can be used to identify key support and resistance areas that act as supply or demand zones. When price is above a zone, it is colored green (demand), and when price is below, it is colored red (supply). This helps traders visualize the shift in market sentiment at specific price levels.

Traders can use the integrated Exponential Moving Averages (EMA) and VWAP to confirm the trend direction. For example, a trader might look for a long entry when price bounces off a demand zone while remaining above the VWAP and the 9-period EMA.

Details

The script is specifically optimized for major equity indices and their derivatives. It includes logic to automatically adjust the price levels based on the symbol being traded, supporting:

• S&P 500: SPY, SPX, ES, MES, and US500.
• Nasdaq 100: QQQ, NQ, MNQ, and US100.

The zones are calculated using fixed historical key levels that have shown significance in market structure. The script also handles session timing to ensure zones are projected accurately across intraday timeframes.

Settings

Main Settings

• Number of Zones: Determines how many predetermined zones are displayed on the chart (0 to 10).
• Extend Zones Right/Left: Options to extend the visual box drawings indefinitely to the right or left of the current session.

Moving Averages

• Fast EMA: Toggle and set the length/color for the fast Exponential Moving Average (default 9).
• Slow EMA: Toggle and set the length/color for the slow Exponential Moving Average (default 21).
• VWAP: Toggle and set the color for the Volume Weighted Average Price.
• EMA Source: Select the price source (Close, OHLC4, etc.) used for moving average calculations.

Time

• Start Time / End Time: Define the start and end hours/minutes for the session window where zones are initially anchored.

FAQ

How do I access the Supply and Demand Zones indicator?

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

Which symbols are compatible with these zones?

The script is specifically coded to work with SPY, QQQ, ES (and its micros/CFDs), and NQ (and its micros/CFDs).

Can I use the alerts for zone entries?

Yes, the script includes a built-in alert that triggers when price first enters any of the active supply or demand zones.