Demand and Supply Zones Lite [Afnan]

2023年11月12日

Are you looking to level up your trading game and spot potential turning points in the stock market? Introducing the Smart Money Demand and Supply Zones indicator, a powerful tool designed to identify opportunities created by the Smart money.
The Smart Money Demand and Supply Zones indicator is built upon the principles of Rally Base Rally (RBR), Rally Base Drop (RBD), Drop Base Rally (DBR), Drop Base Drop (DBD).

🔍 Key Details 🔍
The "Smart Money" concept refers to large institutional investors and professional traders who possess significant financial resources and expertise. The importance of smart money lies in their influence on market trends and price movements. Their actions and positions often serve as signals for retail traders and investors to make informed decisions.
Formation of Smart Money: Smart money is attracted to areas in the market where they can find favourable risk-to-reward opportunities.
1. Rally Base Rally (RBR) Zones: These zones occur after a rally (upward price movement), followed by a period of consolidation (base formation), and then another rally. Smart money often forms positions here as it suggests a strong uptrend continuation.
2. Rally Base Drop (RBD) Zones: In this case, there is a rally, followed by a base formation, but instead of another rally, the price drops. Smart money may position themselves here in anticipation of a potential trend reversal.
3. Drop Base Rally (DBR) Zones: These zones form when there is a drop in price, followed by a base formation, and then a rally. Smart money may take positions here, expecting a trend reversal to the upside.
4. Drop Base Drop (DBD) Zones: In this scenario, the price drops, then forms a base, but subsequently continues to drop. Smart money might take bearish positions here, anticipating further downward movement.


🚀 Pending Orders from Smart Money Zones: 🚀
When the price approaches these smart money zones, institutional investors often place remaining pending orders to enter the market.
By identifying RBR/DBR zones as potential buying opportunities and RBD/DBD zones as potential selling opportunities on price charts, retail traders can align their trades with smart money activities. Implementing proper risk management and confirming signals enhances the likelihood of successful trades by following the footsteps of institutional investors.

💡 Key Features of the Indicator 💡
This indicator includes the following features:

1. Customizable Zone Length: Adjust the number of base candles in a zone to suit your preferences and strategy.
   
2. Candle Body Size Customization: Personalize the body size of candles for fine-tuning visual representation.
   
3. Base Candle Selection: Choose between the body of the candle or narrow range candles as the base candle for zone plotting.
   
4. Colour Customization For Candles: Customize Drop, Base, Rally, and Zone colours to match your visual preferences.
   
5. Number of Zones: This feature is flexible, allowing you to customize the quantity of zones displayed on the chart for improved visibility.
   
6. Zone Colours: You have the option to personalize the colours for both fresh and tested zones based on your preferences.
   
7. Zone Strength Customization: Adjust candle sensitivity for better control.
   
8. Swing High and Swing Low: Enable or disable support and demand lines based on Swing High and Swing Low.
   
9. Wick of Candle: Customize zone plotting using the body or wicks of candles for flexible analysis.
   
10. Previous Zones: You can choose to display or disable previous zones on the chart that have been deleted and utilized before. This option helps you maintain a clutter-free chart while retaining valuable historical information.
    
11. Moving Averages: Utilize four (4) customizable Moving Averages to enhance analysis from any time frame.
    

💎 Employing a Top-Down Approach and Multiple Time Frame Analysis: 💎

Let's delve into the concept of adopting a top-down approach combined with multiple time frame analysis in trading scenarios. It is consistently recommended to trade with the trend because, as the saying goes, "the trend is your friend." If you identify a demand zone on the chart but the overall trend is downward, it's crucial to confirm the stock's trend in higher timeframes. Avoid purchasing from the demand zone in such a scenario as you would be going against the trend. To consider buying from the demand zone, ensure that the overall trend is upward by checking the higher timeframe.

Similarly, if the higher timeframe trend is upward but the price is approaching a higher timeframe supply zone, refrain from buying in the lower timeframe. If the price reaches a higher timeframe supply zone, there is a likelihood that the price will face rejection from this zone.

If the price is significantly extended from the EMA 20 on a higher timeframe, for instance, if you plan to trade on a 30-minute timeframe and the price is considerably extended from the daily EMA 20, consider trading from zones that are closer to the daily EMA 20. When the price is extended from the higher timeframe EMA 20, it implies that the price is expensive, and there may be a tendency for it to return to the EMA 20. Therefore, it is advisable to trade from zones that are closer to the higher timeframe EMA 20 and avoid zones that are extended from the higher timeframe EMA 20.

For instance, imagine you're considering purchasing a stock that has reached a demand zone known as Rally Base Rally (RBR). If you identify a corresponding demand zone in a higher time frame located at the same position, and concurrently observe that the intermediate time frame indicates an upward trend, your potential for a successful trade is enhanced.

Conversely, if you spot a buying zone in a lower time frame, but notice a supply zone in the higher time frame at that exact position, the likelihood of a profitable trade decreases significantly. In such cases, it's prudent to steer clear of the lower time frame zone. This emphasizes the critical significance of employing a top-down approach or conducting a multiple time frame analysis.

Note: By Doing top down approach you can easily follow the footprints of smart money in the stock market or any other market by using this indicator and make well-informed trading decisions.
Remember, don't make decisions based only on one time frame. Check the overall trend of the stock and look at buying and selling points on bigger time scales. If you only use one time scale, your chances of making successful trades will be lower.

💎 To execute these comprehensive analyses and optimize your trading outcomes, you can make use of my indicator called "Demand & Supply Zone Scoring: Rally Base & Drop Concept."💎

This indicator is thoughtfully crafted to assess the strength of trade setups based on demand and supply zones through a scoring mechanism. It serves as your guide for correct top-down and multiple time frame analysis, eliminating the possibility of overlooking any strategic parameters. To gain deeper insights, you can learn more about how to use this indicator in its description.

Lastly, Thank you for your support, your likes & comments." Feel free to ask if you have questions.
Let's conquer the markets together! 🚀

2023年11月19日

版本注释

Location Analysis:
Introducing the highly anticipated Location (Curve) Analysis feature. Gain deeper insights into market movements with advanced location-based analysis.

Invisible Candle on Chart:
A ground-breaking addition to the indicator – the Invisible Candle on Chart feature. Activate this feature to reveal invisible candles on the chart, providing a unique perspective on price action. Unlock new possibilities in your analysis by visualizing hidden market movements.

Bug Fixes:
Some bugs has been fixed & Enhanced overall stability and reliability for a smoother user experience.

2023年11月27日

版本注释

🚀 Major Update v3: Indicator Evolution Unleashed!
Exciting news! The latest version, v3, of our indicator brings a host of new features and bug fixes, making your trading experience even more robust.

New Features 🌟

• Strong Zones Feature: Enable this option to hide weak zones, focusing on strong zones for entry. A game-changer to avoid zones that could hit your stop-loss.
  
• Enhanced Follow-Through Feature : Now, zones will be plotted only if there is a confirmed follow-through within the specified number of bars. By default, this number is set to 4. This means, for a zone to be plotted, a follow-through must occur within the next 4 bars, ensuring a more accurate representation of market movements.
  
• Trend Table: Now, easily view Higher Timeframe (HTF) and Lower Timeframe (LTF) trends on the lower timeframe, enhancing trend analysis.
  
• Trade Components Table: A quick-reference table displaying target, entry, stop-loss, and risk-to-reward ratio. Streamlining your entry planning process.
  
• Zone Components Table: Dive deeper with distal and proximal values neatly presented in a table for comprehensive zone analysis.
  

Bug Fixes and Improvements 🛠️

• Curve Analysis: Bug fixes and improvements for accurate curve analysis.
  
• Base Candle Detection: Enhanced detection for more precise analysis.
  

Upgrade Now and Trade Smarter! 💹✨
Note 📝: Always ensure you are using the latest version to benefit from these exciting features and improvements.
Disclaimer 🚨: This update is for informational purposes only. Trade responsibly.

Feedback 🌟: Lastly, Thank you for your support, your likes & comments. Feel free to ask if you have questions. Let's enhance our trading journey together!

2023年11月28日

版本注释

• Tested Zones Separation: Demand and supply zones now have separate tested zones. This streamlines your analysis for a clearer understanding of both demand and supply dynamics.
  
• Number of Demand and Supply Zones Separation: Gain better insight by having the number of demand and supply zones clearly separated.
  

2023年11月28日

版本注释

Minor bug fixed

2023年11月29日

版本注释

Bug fixed

2023年11月29日

版本注释

bug fixed

2023年12月4日

版本注释

Updates: Enhancement in trend detection, improved signal conditions, and better follow-through conditions. Curve analysis is now turned off by default. Improved non-extended option. A separate section has been created for font settings.

2023年12月14日

版本注释

Release Notes:
Zone Limitation by Time Frames:
📆 Now, you have the power to limit the number of zones displayed based on time frames.
🕰️ Customize the display of zones for each time frame. For example, set it to display 60 days of zones for Daily time frames.
⚙️ Adjust settings according to your requirements for more flexibility in analyzing recent unfilled orders.

Enhancements:
🔍 Detection of base and leg candles has been fine-tuned for greater accuracy.
🔄 Detection of follow-through improved.
📈 Zones will now be plotted immediately upon follow-through or breakout of the opposite zone or pivot.

Note: Zone Limitation by Time Frames is not enabled by default; you can set it as the default from the settings of the indicator.

I'm confident that these changes will elevate your trading experience. As always, your feedback is invaluable! 🌐

2023年12月14日

版本注释

Bug fixed

2023年12月21日

版本注释

🚀 Indicator Update :
🏆 Achievement Zone: Choose to see zones with follow-through candles breaking opposite zones or pivot levels.
📈 Improved Trend Detection: Enhance accuracy in identifying market trends.
🏢 Sector and Industry Details: View Sector and Industry Details on chart

2月4日

版本注释

• Enhancements in Zone Detection: improved zone detection capabilities, ensuring that ineffective or low-quality zones, often referred to as "garbage zones," are now eliminated. This constitutes a substantial update in zone detection.
  
  
• Piotroski F-Score : For investors with a keen interest in fundamentally strong companies, we've introduced the Piotroski F-Score feature. This addition will display the Piotroski F- Score, assisting in the evaluation of a company's financial strength and investment potential.
  

2月11日

版本注释

Trend Detection improved

2月12日

版本注释

• Minor Bug Fixed
  

3月2日

版本注释

Latest Update:

• Improvements have been made to Zone and Candle Detection.
  
• Bollinger Bands filter has been introduced to identify optimal zones, which is turned off by default in the settings.
  
• A minor bug has also been addressed.
  

8月30日

版本注释

Penetration % Added to Remove Tested Zones:
We’ve added a new feature to automatically remove tested zones if the price penetrates 70% into the zone. This concept is based on unfilled orders; deep penetration indicates filled orders, weakening the zone’s strength. By default, this feature is set to 70%, but you can adjust it to 50% if desired. This update was requested by our user who is a student of prominent trader Sam Seiden.

Additionally, many unnecessary features have been turned off by default. If you want to see details like the Piotroski F score or industry and sector information, you can enable them from the settings.

8月30日

版本注释

Minor changes have been made to the layout of the indicator settings.

9月5日

版本注释

A minor bug has been fixed

9月8日

版本注释

Double Distance Validation Option: We've added new option "Double Distance Validation" in settings. By enabling this option, you can filter out many unwanted zones that haven't shown significant movement after their formation. This ensures that only zones with good post-formation movement are displayed on your chart.

Bug Fixes: Minor bugs have been fixed to improve overall performance.

9月9日

版本注释

Enhanced zone detection

9月12日

版本注释

New Update: We’ve enhanced the visual representation of violated zones! Now, you can see violated zones up to the exact point where the price penetrated them. This feature is especially useful for backtesting, allowing you to accurately review all previously violated zones that were removed by the standard removal rules.
To enable this feature, simply go to the indicator settings, navigate to the "Tested Zone" section, and turn it on.

10月15日

版本注释

Minor Update: Added 2 parts option in curve analysis

10月23日

版本注释

Minor bug has been fixed, and code has been further optimized.

5天前

版本注释

✅ Authentic Zones Only (Key Zones): Keep your charts clean with only the essential zones. (Default: enabled for chart timeframe; can be turned off if preferred)

We have included higher timeframe swing highs and lows! (Default: off; turn it on and select your preferred higher timeframe if desired)