Supply/Demand Market Structure (SMA Multi-Timeframe)

The Supply/Demand Market Structure (SMA Multi-Timeframe) indicator is a comprehensive market analysis tool that identifies structural shifts and institutional order blocks using SMA-based synthetic candles to filter market noise. By smoothing price action through moving averages, it provides a clearer view of trend continuity and high-probability reversal zones across multiple timeframes.

Usage

The indicator is primarily used to identify market structure shifts (BoS) and the resulting supply or demand zones. Users should monitor the synthetic SMA candles for cleaner trend identification:

• Market Structure Tracking: The tool automatically maps swing points (HH, HL, LH, LL) using a zigzag algorithm. A bullish break occurs when the price closes above the high of the last bearish synthetic candle, while a bearish break occurs when it closes below the low of the last bullish synthetic candle.
• Supply & Demand Zones: Upon a confirmed structure break, the indicator plots zones based on the institutional move that caused the break. These zones serve as areas of interest for retests and entries.
• Mitigation Logic: Zones can be configured to dim or disappear once the price has traded through them, helping traders focus only on "fresh" levels.
• Liquidity Sweeps: The script identifies liquidity sweeps (LS) to highlight potential false breakouts or areas of institutional accumulation/distribution.

Details

Unlike standard market structure tools that use raw price data, this script utilizes Synthetic SMA Candles. These are constructed by applying a Simple Moving Average to the OHLC values of a user-defined higher timeframe (HTF). This methodology filters out minor price fluctuations, ensuring that the identified structure and supply/demand zones represent more significant market movements. The script also includes dual breakout modes: "Raw Close" for standard confirmation and "SMA Close" for an extra layer of smoothing before a structure shift is confirmed.

Settings

Main Settings

• Timeframe: Selects the specific timeframe for synthetic candle calculation.
• SMA Length: Adjusts the smoothing of the synthetic candles (use 1 for raw price data).
• Calculate Zig-Zag By: Choose between "Supply/Demand" or "Change of Control" logic for swing point mapping.
• Breakout Mode: Sets the price source for structure break confirmation (Raw Close vs. SMA Close).

Visuals

• Show Supply/Demand Zones: Toggles the visibility of institutional zones.
• Zone Extension: Determines how many bars into the future the zones are projected.
• Delete Mitigated/Broken Zones: Cleans up the chart by removing levels that price has already violated.
• Show Zig-Zag Lines/BoS Lines: Toggles the structural mapping visuals.

Alerts

• Alert Mode: Configures the alert priority between LTF, MTF, and HTF logic.
• Alert Types: Individual toggles for Supply/Demand zones, Swing Highs/Lows, and Break of Structure.

FAQ

How do I interpret the different swing labels? The script identifies Higher Highs (HH), Higher Lows (HL), Lower Highs (LH), and Lower Lows (LL) to define the trend direction. "LS" indicates a Liquidity Sweep, where price moves beyond a previous swing point but fails to sustain a breakout.

What is the benefit of SMA-based candles? Using SMAs for candle construction helps filter out "market noise" and prevents premature signals caused by wicks or minor volatility, leading to more reliable zone identification.

How can I access the Supply/Demand Market Structure (SMA Multi-Timeframe) indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.