No Supply No Demand (NSND) – Volume Spread Analysis Tool

The No Supply No Demand (NSND) – Volume Spread Analysis Tool indicator automatically identifies specific Volume Spread Analysis (VSA) patterns to help traders spot potential market turning points based on professional volume logic and price action confirmation.

Usage

The Usage section describes how the script can be used to identify accumulation and distribution phases. The tool plots distinct markers on the chart when specific volume conditions are met:

• Confirmed No Demand (ND): Indicated by a red circle above the bar. This occurs when a bullish candle has lower volume than the two preceding bars and is subsequently followed by price action that sweeps the high but closes below it, indicating a lack of buying interest.
• Confirmed No Supply (NS): Indicated by a green circle below the bar. This occurs when a bearish candle has lower volume than the two preceding bars and is followed by price action that sweeps the low but closes above it, indicating a lack of selling pressure.
• Unconfirmed Signals: If the required price action confirmation does not occur within the specified lookahead window, a gray circle is plotted to signify an unconfirmed setup.

Details

This tool is built upon the principles of Volume Spread Analysis (VSA), specifically focusing on the concepts of "No Demand" and "No Supply." These patterns suggest that professional interest is absent, often preceding a reversal. The script uses a lookahead mechanism (processing candidates over several bars) to ensure that the initial volume signal is validated by actual price behavior (trapping or rejection at the candle's extremes) before confirming the signal.

Settings

• Lookahead Bars: Defines the maximum number of bars the script will wait for price action confirmation after the initial volume setup is detected.

FAQ

How do I use the No Supply No Demand (NSND) – Volume Spread Analysis Tool?

Look for confirmed signals (red or green dots) as potential entry or exit points. A red dot suggests potential distribution (weakness), while a green dot suggests potential accumulation (strength).

What is the difference between a colored and a gray dot?

A colored dot (red or green) represents a confirmed VSA signal where price action validated the volume setup. A gray dot indicates the volume setup occurred but was not confirmed by price within the lookahead window.

Where can I access this tool?

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