Supply Demand Zones Pro

The Supply Demand Zones Pro indicator is a professional-grade tool designed to automatically identify and score high-probability supply and demand zones. It provides traders with an automated way to map market structure and liquidity areas across all major asset classes and timeframes, including Forex, Crypto, Stocks, and Indices.

Usage

The indicator automatically plots supply (red) and demand (green) zones on the chart. To use this tool effectively:

1. Identify High-Probability Zones: Focus on zones with higher strength scores (7–10). These represent fresher levels with higher reversal potential.
2. Monitor Price Interaction: Watch for reversal setups when price enters a zone, such as rejection wicks, engulfing candles, or shifts in market structure.
3. Confirmation: Use the zones as a primary filter and confirm entries with secondary indicators like Moving Averages for trend or RSI for momentum.
4. Risk Management: Use the real-time distance labels (shown in pips) to gauge the distance from the current price to the zone edge for precise entry planning.

Details

The script incorporates several advanced logic components to improve zone quality:

• Zone Strength Ranking: Each zone is dynamically scored from 1–10. The score decreases as the zone ages or undergoes more retests, as liquidity is typically absorbed with each touch.
• Session Tracking: The tool identifies whether a zone was formed during the Asian, London, or New York sessions, providing context on the volume behind the move.
• Retest Tracking: The script automatically marks retests with an "R" marker, allowing traders to see how many times a level has been defended.
• Volatility-Based Filtering: Using ATR (Average True Range), the script filters out zones that are too thin (market noise) or too large (inefficient for trading).

Settings

Zone Detection

• Swing Length (Sensitivity): Determines the lookback for pivot detection. Higher values result in fewer, more significant zones.
• Max Zones to Display: Limits the total number of active supply and demand zones shown.
• Max/Min Zone Height (ATR): Filters zones based on their height relative to market volatility.
• Force Zone Height (ATR): Automatically expands narrow zones to a minimum specified volatility threshold.
• Min Distance Between Zones: Sets the minimum bar count required between consecutive zones to prevent clutter.

Zone Settings

• Zone Invalidation: Choose between "Close" (candle must close past the zone) or "Wick" (any touch beyond the boundary breaks it).
• Show Historic Zones: Toggles the visibility of invalidated (gray) zones.
• Active/Historic Lookback: Controls how many bars back the script should look to display zones.

Display

• Show Active/Historic Zone Info: Toggles the descriptive labels containing strength, session, and distance data.
• Label Size: Adjusts the font size of the on-chart information labels.

FAQ

How can I access Supply Demand Zones Pro? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why did a zone turn gray? A zone turns gray when it has been invalidated (broken) by price action. This is now considered a "Historic Zone," which can be useful for identifying potential "flip" levels where old supply becomes new demand.

What does the strength score mean? The score (0-10) evaluates the freshness of the zone. A score of 10 indicates a new, untested zone, while lower scores indicate the zone has been tested multiple times or has existed for a long duration.