Pipnotic Supply and Demand

10 mar

Description

The Pipnotic Supply and Demand Indicator was originally developed in 2011 for another trading platform and is currently being rewritten for TradingView due to user demand. It is a powerful tool designed for traders who utilize supply and demand concepts in technical analysis. This script automatically detects and highlights key supply and demand zones (as well as buy and sell zones) on the chart, enabling traders to identify potential reversal points, trend continuations, and price imbalances. We will continue to actively develop this indicator for existing and this new version for TradingView.

How It Works

The indicator follows a structured methodology to analyse price action and identify high-probability supply and demand zones:

Zone Identification:

• Detects accumulation and distribution phases using volatility and range conditions.
  
• Identifies zones where price imbalances occur, signalling potential trading opportunities.
  

Expansion and Confirmation:

• Assesses whether the price expands away from a zone significantly enough to validate it as a supply or demand zone.
  
• Uses a risk-to-reward ratio to ensure zones meet predefined trading criteria, adjustable via the configuration.
  

Visualization and Management:

• Plots supply (bearish) and demand (bullish) zones directly on the chart.
  
• Labels the percentage of expansion from the zone, giving traders insights into the strength of the imbalance.
  
• Updates zones dynamically, marking tested and consumed levels and preventing outdated information from cluttering the chart.
  

Key Features & Inputs

• Customizable Zone Display: Traders can adjust the maximum number of supply and demand zones shown on the chart.
  
• Dynamic Volatility Sampling: Uses the ATR (Average True Range) to adapt to changing market conditions.
  
• Flexible Risk Management: Allows traders to define a minimum zone size and a risk-to-reward ratio for filtering zones.
  

Enhanced Visualization:

• Adjustable colours for bullish and bearish zones.
  
• Configurable border width for zone clarity.
  
• Optional display of consumed zones to avoid redundant signals, but to also identify price sensitive zones on the flip side of the book when zones are consumed.
  
• Swing Significance Detection: Enables boxing of significant price swings to refine the accuracy of identified zones.
  

Benefits of Using the Pipnotic Supply and Demand Indicator

Automates Supply and Demand Analysis: Eliminates the need for manual zone drawing, saving time and reducing subjectivity.

Enhances Trade Decision-Making: By providing precise entry and exit points based on supply and demand principles, traders can optimize their strategies.

Adapts to Market Conditions: The indicator dynamically adjusts to price movements, ensuring relevant zones are displayed.

Works Across All Timeframes: Suitable for scalping, swing trading, and long-term investing.

Compatible with Multiple Trading Strategies: Can be used alongside trend-following, breakout, and reversal strategies for improved trade confirmation.

7 apr

Note di rilascio

This update includes several important improvements to both the default settings and the core code structure.

Here’s a summary of the key changes:

• Refined Variable Naming: Updated variable and text labels to better align with number theory conventions, enhancing clarity and consistency.
  
• Improved Configuration Layout: Added descriptive labels to each input setting for easier customization and understanding.
  
• Updated Default Settings: Adjusted default values to be more flexible and responsive to a wider range of market conditions.
  
• Enhanced Supply and Demand Logic: Made targeted improvements to the way supply and demand zones are calculated and displayed for better accuracy.
  

These updates aim to make the tool more intuitive and adaptable, while preserving the original intent and functionality.

Thank you.