Supply and Demand

The Supply and Demand indicator helps traders identify potential support and resistance zones by calculating and plotting pivot highs and lows across customizable lookback ranges. By visualizing these key historical price levels, users can better anticipate market reactions and define entry or exit strategies based on supply and demand dynamics.

Usage

The tool identifies pivot points across sequential 10-bar ranges. It can be used to:

• Identify Support and Resistance: Red circles and lines represent supply (resistance) zones, while green ones represent demand (support) zones.
• Timeframe Filtering: Users can restrict the tool to show levels only on specific popular timeframes (15m, 30m, 1h, 4h, 1d) to ensure they are looking at major institutional levels.
• Confluence: Traders can use these levels alongside other indicators; for example, an RSI divergence occurring at a plotted demand level may provide a higher probability reversal signal.

Details

The indicator calculates the highest high and lowest low for up to ten consecutive 10-bar segments (spanning up to 100 bars total). Unlike static pivot points, this approach provides a granular view of price extremes over specific past intervals. The use of transparent plotting ensures that the chart remains legible even when multiple historical ranges are active simultaneously.

Settings

• Limit to specific timeframes?: If enabled, the indicator will only display plots on 15m, 30m, 1h, 4h, and Daily charts.
• Plot Circles?: Toggles the visibility of the circle markers on the chart.
• Plot Lines?: Toggles the visibility of the horizontal lines representing the pivot levels.
• Number of Ranges to Plot (1-10): Determines how many 10-bar historical segments the script calculates.
• Number of Last Ranges to Show for Circles: Controls the historical depth of the circle plots displayed on the chart.

FAQ

How do I interpret the red and green levels?

Red levels represent historical pivot highs (Supply), indicating areas where selling pressure has previously emerged. Green levels represent historical pivot lows (Demand), indicating areas where buying interest has historically been found.

Can I use this for automated alerts?

Yes, the script includes built-in alert conditions that trigger when price crosses the most recent supply or demand levels.

How can I access Supply and Demand?

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