Institutional Demand Supply Indicator

31 agoINTRODUCTION

Institutional demand and supply zones are key areas on a price chart where large institutional traders, such as banks and hedge funds, place significant buy or sell orders. These zones often act as strong support or resistance levels due to the substantial volume of trades executed by institutions.

There are various ways to identify these areas of interest on the charts, but the main goal is to study the price movements, especially significant ones. Large financial entities tend to operate in the same price areas repeatedly. Instead of chasing price movements and risking counter moves, it's better to wait for the price to return to these areas, expecting that these entities will buy or sell there again.

INDICATOR SETTINGS:

1. High Probability Zones (HPZ) - High Probability Zones (HPZ) are demand and supply zones identified using advanced calculations to highlight the most relevant and significant areas. These zones have a higher probability of impacting price movements. Better to keep it turned On.
2. Zone Extension? - Extending zones can be useful for identifying areas that have already been retraced as these zones may continue to influence market dynamics despite the retracement.
3. Zone Type - This option lets you select the zone layout type. 4 options are given which are self explanatory.
4. Directional Candle Count - This option keeps a count of number of consecutive bullish / bearish candle that you would like to set as qualifying parameter for demand / supply zone. For Example - If you keep the number 1, the script will draw a demand or supply zone by just checking if 1 candle has met all the criteria's and calculations.
5. Zone Validity Percentage - You can set the percent change for the number of candles mentioned in point 4 above.
6. HPZ - Keep the number between 6 to 10. As you move the number up, less number of zones will be displayed.
7. Zone Count - You can adjust the number of visible demand and supply zones on the chart. Increase this number if you want to display more zones, or decrease it if the chart becomes too cluttered.

D I S P L A Y
1. Background Color Demand / Supply Zone - This is the background color of demand and supply zone.
2. Channel Color Demand / Supply Zone - This is the color of channel.
3. Channel Line Style - Choose between Solid, dotted or dashed.
4. Background Color Transparency - Choose the transparency of background color
5. Channel Line Width - Choose Channel line width between 1 to 4.
6. Channel Line Transparency - Choose Channel Line Transparency and keep it between 1 to 100.

Sometimes, a level may be breached on one timeframe, but that doesn’t mean the indicator is not working. To understand the price action better, switch to a different timeframe to check why that level was breached and why it found support at a different zone on another timeframe. Look at the 2 screenshots below.

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Note di rilascio

Added Daily SR Levels:

The Daily SR Level is a leading tool designed specifically for intraday trading. It helps traders identify key reversal points throughout the day by marking support and resistance zones. This tool is particularly useful for day traders, though swing and positional traders may also benefit from it when focusing on shorter timeframes. It is important to note that this indicator is based solely on intraday data and does not work on daily, weekly or monthly timeframes.

The red zone represents resistance, where the price is likely to face selling pressure and reverse downwards, while the green zone marks support, where buying pressure may push the price back up. On average, price tends to stay within these zones 80% of the time, making these levels highly reliable for intraday trades.

The indicator calculates these zones using the average of previous days' price levels, allowing traders to forecast the current day's support and resistance more accurately. By using this tool, traders can better plan entries, exits, stops, and targets based on where the price is in relation to these key zones, offering an edge in risk management.

l’altro ieri

Note di rilascio

Added Description for Reversal Candles and Daily SR Levels.
Minor code correction