Supply and Demand Rebalancing

5天前

Please do not use this rudimentary script to lose money. As far as I can tell it has ZERO EDGE on its own.



Supply and Demand Pattern Detection Script

Overview
This script identifies potential supply and demand zones by detecting a specific double-wick pattern formation. It's designed as an educational tool and research aid for traders interested in price action and supply/demand concepts.

Pattern Detection

• Looks for consecutive candles with long wicks (tails) that align with each other
  
• The wicks must be larger than a specified percentile of recent wick lengths
  
• The candle bodies must be relatively small compared to their wicks
  
• Volume and volatility filters can be optionally applied
  
• Higher timeframe trend confirmation is available as an optional filter
  

Visual Aids

• Green triangles appear when a long setup is detected
  
• Red triangles appear when a short setup is detected
  
• Boxes show the risk zone (red) and reward zone (green)
  
• Boxes extend until the trade reaches either its target or stop loss
  
• A performance table shows win rate and profit factor statistics
  

Key Settings

1. Pattern Detection:

• Wick Alignment Tolerance: How closely the wicks need to align
  
• Min Wick Length Percentile: Minimum size requirement for wicks
  
• Max Body/Wick Ratio: Controls maximum candle body size relative to wick
  

2. Additional Filters:

• Volume Filter: Optional volume confirmation
  
• ATR Filter: Optional volatility confirmation
  
• Higher Timeframe Confirmation: Optional trend alignment
  

3. Trade Parameters:

• Risk/Reward Ratio: Default 2:1
  
• Bars to Wait for Outcome: How long to track trade results
  

Important Disclaimers

This is an educational tool and should NOT be used to trade real money without extensive testing and modification. Please do not use this rudimentary script to lose money. As far as I can tell it has zero edge on its own.

Historical backtesting results are not indicative of future performance. The script may miss some valid setups or generate false signals. Trade outcomes are simplified and don't account for:

• Slippage
  
• Trading fees
  
• Market liquidity
  
• Gap risk
  
• Real-world execution challenges
  

Recommended Usage

• Use as a learning tool to understand supply/demand concepts
  
• Practice identifying these patterns manually
  
• Paper trade the setups first
  
• Combine with other forms of analysis and risk management
  
• Consider it one tool among many, not a complete trading system
  

Best Practices

• Always use proper risk management
  
• Test thoroughly on demo accounts first
  
• Keep detailed trading logs
  
• Understand why each pattern forms
  
• Study both winning and losing trades to improve pattern recognition
  

Remember: No trading script can guarantee profits. This tool is meant for educational purposes and should be part of a broader trading education and development process.