NoSupply NoDemand 1.0
1 - Description
This indicator is mainly used in a VSA (Volume Spread Analysis) based strategy, it shows NoSupply and NoDemand confirmations (and sends alerts if needed), which are triggers to enter a trade in some VSA based strategies.
2 - Definitions
NoSupply Candle
NoDemand Candle
3 - How this indicator works
There are 2 entry triggers possible with this indicator.
NoSupply Confirmation - Long
When there is a NoSupply Candle, a confirmation candle is needed to give an entry.
The conditions below has to be satisfied
NoDemand Confirmation - Short
When there is a NoCandle Candle, a confirmation candle is needed to give an entry.
The conditions below has to be satisfied
4 - How to add an Alert
1. On the chart, choose the timeframe of the Alert
2. Right Click on the Chart
3. Add Alert
4. In the "Condition" field, choose "NoSupply NoDemand 1.0"
5. Another field then shows just below the "Condition" field, choose the Alert Type needed (NoSupply or NoDemand)
6. Edit the alert name and message (if needed)
5 - How to use Alerts in the strategy
I personally use it this way for my VSA (Volume Spread Analysis) based strategy.
1. Define the background (Strength or Weakness)
2. Define key areas to look for a trade
3. Set Price Alerts in key areas defined in step 2
4. Look for High Volume (or Stopping Volume) in the pre-defined key area
5. If the volume confirms the background (High Volume and rejection in the right place), and if I'm busy and can't watch the charts, I use this indicator to set a NoSupply or a NoDemand alert. An alert is sent on the close of the confirmation candle.
6. If I can watch the charts, no need for alerts, and the indicator show the NS and ND confirmations as explained in section 3.
This indicator is mainly used in a VSA (Volume Spread Analysis) based strategy, it shows NoSupply and NoDemand confirmations (and sends alerts if needed), which are triggers to enter a trade in some VSA based strategies.
2 - Definitions
NoSupply Candle
- It's a down candle with its volume lower than the previous 2 candles.
- The candle has to close bearish and there has to be some sort of rejection (pin or wick) at its low.
- If the low is equal to the close it would not be a NoSupply candle.
NoDemand Candle
- It's an up candle with its volume lower than the previous 2 candles.
- The candle has to close bullish and there has to be some sort of rejection (pin or wick) at its high.
- If the high is equal to the close it would not be a NoDemand candle.
3 - How this indicator works
There are 2 entry triggers possible with this indicator.
NoSupply Confirmation - Long
When there is a NoSupply Candle, a confirmation candle is needed to give an entry.
The conditions below has to be satisfied
- A confirmation candle is a candle that closes above the high of the NoSupply candle.
- There has to be no close below the low of the NoSupply candle before the confirmation candle.
- This indicator looks for a confirmation within the next 7 candles
NoDemand Confirmation - Short
When there is a NoCandle Candle, a confirmation candle is needed to give an entry.
The conditions below has to be satisfied
- A confirmation candle is a candle that closes below the low of the NoDemand candle.
- There has to be no close above the high of the NoDemand candle before the confirmation candle.
- This indicator looks for a confirmation within the next 7 candles
4 - How to add an Alert
1. On the chart, choose the timeframe of the Alert
2. Right Click on the Chart
3. Add Alert
4. In the "Condition" field, choose "NoSupply NoDemand 1.0"
5. Another field then shows just below the "Condition" field, choose the Alert Type needed (NoSupply or NoDemand)
6. Edit the alert name and message (if needed)
5 - How to use Alerts in the strategy
I personally use it this way for my VSA (Volume Spread Analysis) based strategy.
1. Define the background (Strength or Weakness)
2. Define key areas to look for a trade
3. Set Price Alerts in key areas defined in step 2
4. Look for High Volume (or Stopping Volume) in the pre-defined key area
5. If the volume confirms the background (High Volume and rejection in the right place), and if I'm busy and can't watch the charts, I use this indicator to set a NoSupply or a NoDemand alert. An alert is sent on the close of the confirmation candle.
6. If I can watch the charts, no need for alerts, and the indicator show the NS and ND confirmations as explained in section 3.
Note di rilascio:
The chart attached to this script was updated to give more explanations of how the indicator should be used.