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Zones Detector

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This indicator highlights supply and demand zones.

Method to detect the zones:

1.- The body of the candle is calculated and it is checked how many times it can be repeated in its highest or lowest wick. If the body of the candle is repeated N number of times (Min. Factor) in any of its wicks, it is taken as an indecision zone.
2.- The subsequent candles are reviewed (Confirmation Bars) to determine if the zone is of supply or demand. For demand zones, subsequent prices must be above the minimum price of the indecision zone and for supply zones, subsequent prices must be below the maximum price of the indecision zone.
3.- The previous average volume of N periods (Periods) to the indecision zone is calculated and check that has a minimum percentage change (Min. Volume Change) with respect to the indecision zone and its subsequent candles (Confirmation Bars).

If the previous steps are met, the zone will be highlighted with a green color for demand (Zones/Demand) and red for supply (Zones/Supply), for the indecision zones (identified by point 1) they will be highlighted in gray (Zones/Indecision)

Invalid zones are automatically hidden from the chart, using methods such as: "wick" and "close".

Settings

Indecision

Min. Factor: Set the number of times that the body of the candle must be repeated in its wicks. High values will be stronger indecision zones, but fewer will be found, low values will find more zones.
Invalidation Method: Method used to automatically invalidate zones. It can be "wick" or "close".
Confirmation Bars: Defines the number of candles used to confirm an indecision zone found

Volume

Min. Volume Change(%): Percentage of minimum change in volume (+/-) that the zone must have to be displayed
Previous Periods: Number of previous periods to be used to calculate the average volume prior to the indecision zone.

Zones