SMC Supply & Demand Zones - H4 / H1 / M10

The SMC Supply & Demand Zones - H4 / H1 / M10 indicator automatically identifies and plots institutional supply and demand zones across multiple timeframes using volume-confirmed impulse candles. This tool allows traders to visualize high-probability reversal and continuation areas on a single chart, facilitating multi-timeframe analysis rooted in Smart Money Concepts.

Usage

The Usage section describes how the script can be used to identify institutional footprints. The indicator works by monitoring H4, H2, H1, M30, and M10 timeframes simultaneously, regardless of the chart's current resolution.

Traders typically use the higher timeframe zones (H4 or H1) to establish market bias and the lower timeframe zones (M10 or M30) for entry confirmation. A common strategy involves waiting for price to sweep into a higher-timeframe zone and then looking for a reaction or a shift in market structure on the lower timeframe.

The script includes three primary handling modes for when price interacts with a zone:

• Extend always: The zone continues to grow to the right indefinitely until fully mitigated.
• Stop stretch: The right edge of the zone freezes at the bar where price first re-enters the area.
• Delete: The zone is removed immediately upon being touched by price.

Details

The indicator identifies zones based on a strict set of criteria to ensure institutional participation:

1. Body Size: The candle body must be greater than or equal to a specified multiple of the 14-period ATR to filter out indecision.
2. Impulsive Intent: The candle close must break beyond the high (for demand) or low (for supply) of the previous X candles.
3. Volume Confirmation: The candle volume must be higher than a specified multiple of its 20-period SMA, indicating professional activity.

Zone boundaries are constructed according to SMC base candle rules: demand zones span from the impulse candle's open to its low, while supply zones span from its high to its open. When price closes fully through a zone, it is marked as "mitigated" ([m]), turns grey, and is visually de-emphasized to provide historical context without cluttering the current price action.

Settings

Timeframes

• Show H4 / 2H / H1 / M30 / M10 zones: Toggles the visibility of zones for each specific timeframe.

Impulse Detection

• ATR length: The period used to calculate the ATR for body-size filtering.
• Body ≥ ATR ×: The multiplier required for a candle body to be considered an impulse move.
• Prior bars for Hi/Lo break: The number of previous candles used to confirm a breakout.
• Volume SMA length: The lookback period for the volume moving average.
• Volume ≥ SMA ×: The multiplier applied to the volume SMA to confirm institutional interest.

Zone Management

• Max active zones per TF: The maximum number of active zones displayed per timeframe (uses FIFO logic).
• Max mitigated zones per TF: Limits how many greyed-out mitigated zones remain on the chart.
• On zone touch: Determines the behavior of the zone box when price enters it (Extend, Stop, or Delete).
• Touch cooldown (minutes): The delay required before a zone can be registered as "touched," preventing the impulse candle itself from triggering the logic.

Display & Colours

• Colours (various): Customizes the appearance of supply and demand boxes for every timeframe.
• Mitigated zone transparency: Controls the visibility of zones that have been pierced by price.
• Show zone labels/borders: Toggles the text labels and outlines for the boxes.

FAQ

How do I use this for multi-timeframe confluence? You can load the indicator on a lower timeframe chart (like the 5-minute) and enable the H4 and H1 zones. When price enters an H4 supply zone and then creates a new M10 supply zone, this provides a "nested" setup for higher probability entries.

Why do some zones disappear? Zones may disappear based on your "On zone touch" setting or if the maximum number of zones (defined in Zone Management) has been reached, causing the oldest zones to be removed.

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