HTF Supply & Demand Zones

📊 Overview
Advanced supply and demand zone indicator that automatically detects institutional-level price zones on higher timeframes and dynamically adapts zone colors based on price position. Zones below price act as demand (support) and zones above price act as supply (resistance).

✨ Key Features

🎯 Dynamic Zone Recognition
- Smart Color Adaptation: Zones automatically change from demand (green) to supply (red) when price crosses them
- Higher Timeframe Analysis: Detect zones from any timeframe while trading on lower timeframes
- Base/Blast Pattern Detection**: Identifies strong institutional zones using base-blast candle methodology
- Automatic Zone Flipping: Broken demand zones become supply and vice versa

📈 Zone Detection Method
Uses the proven Base & Blast candle pattern:
- Base Candle: Small consolidation candle with minimal wick
- Blast Candle: Strong momentum candle breaking from the base
- Customizable Ratio: Adjust base/blast body size ratio (default 8:1)
- Wick Filter: Ensures clean base candles for higher probability zones

🎨 Visual Features
- Clean Zone Boxes: Extended zones with customizable colors and transparency
- Smart Labels: Display zone type and touch count
- Touch Counter: Track how many times price has tested each zone
- Info Dashboard: Real-time statistics in top-right corner

⚙️ Zone Management
- Auto-Delete After X Touches**: Remove zones after specified number of tests (default: 5)
- Optional Break Deletion**: Choose whether to delete zones when price breaks through
- Maximum Zone Limit**: Control chart cleanliness by limiting displayed zones
- Extended Zones**: All zones extend to the right for forward visibility

🔧 Settings

Detection Parameters
- Higher Timeframe: Select any timeframe for zone detection (empty = current timeframe)
- Base/Blast Ratio: 4.0 to 30.0 (default: 8.0) - Higher = stronger zones, fewer signals
- Wick Threshold: 0.1 to 0.5 (default: 0.3) - Maximum base candle wick size

Display Options
- Toggle demand/supply zones independently
- Maximum zones to display (1-50)
- Show/hide zone labels
- Customizable colors for demand and supply zones
- Adjustable border width

Zone Management
- Delete after X touches (1-30 touches)
- Delete on break option
- Touch counter displays current/max touches

💡 How to Use

For Swing Trading
1. Set timeframe to Daily or Weekly
2. Use 8:1 ratio for high-quality zones
3. Enable auto-delete after 3-5 touches
4. Trade pullbacks to green zones (demand) for longs
5. Trade rallies to red zones (supply) for shorts

For Day Trading
1. Set timeframe to 1H or 4H
2. Use 6:1 ratio for more zones
3. Watch for zone color changes as confirmation
4. Enter when price retests zones in the direction of the higher timeframe trend

For Scalping
1. Set timeframe to 15m or 1H
2. Use 5:1 ratio for frequent signals
3. Focus on first touch of fresh zones
4. Use lower timeframes for precise entries

📋 Best Practices

✅ DO:
- Use zones from higher timeframes for better reliability
- Wait for zone color change as confirmation of flip
- Focus on first 2-3 touches of a zone
- Combine with trend analysis
- Use zones as targets and entry levels

❌ DON'T:
- Trade every zone - quality over quantity
- Ignore the touch counter
- Use on very low timeframes without HTF context
- Trade zones that have been tested many times

🎓 Understanding Dynamic Colors

Green Zones (Demand) = Below current price = Support = Look for bounces
Red Zones (Supply) = Above current price = Resistance = Look for rejections

When price breaks a green zone downward, it flips to red (former support becomes resistance)
When price breaks a red zone upward, it flips to green (former resistance becomes support)

📊 Info Dashboard

The top-right table displays:
- Active timeframe
- Current demand zones count (below price)
- Current supply zones count (above price)
- Active base/blast ratio
- Maximum touches setting

🔔 Trading Signals

High Probability Setups:
- Fresh zones (0-1 touches) on higher timeframes
- Zones that align with major support/resistance
- First test after a zone color flip
- Multiple timeframe confluence

Avoid:
- Zones with 4+ touches
- Zones in choppy/ranging markets
- Counter-trend zones during strong momentum

⚡ Performance Notes

- Maximum 500 boxes and lines supported
- Optimized for real-time scanning
- Minimal resource usage
- No repainting - all zones are confirmed

🎯 Recommended Settings by Trading Style

Conservative (Higher Quality)
- Ratio: 10:1
- Wick Threshold: 0.2
- Delete After: 3 touches

Balanced (Default)
- Ratio: 8:1
- Wick Threshold: 0.3
- Delete After: 5 touches

Aggressive (More Signals)
- Ratio: 6:1
- Wick Threshold: 0.4
- Delete After: 7 touches

---

📖 Additional Resources

For more information on supply and demand trading:
- Study institutional order flow
- Learn base and blast candle patterns
- Understand market structure and liquidity zones
- Practice on demo before live trading

Risk Warning: This indicator is a tool for technical analysis. Always use proper risk management and combine with your trading strategy. Past performance does not guarantee future results.

---

Compatible with all markets: Forex, Stocks, Crypto, Futures, and Indices

Version: 1.0 | Language: Pine Script v5