The Most Accurate Supply & Demand Indicator On Tradingview

this is Supply and this is demand and this is a supply and demand indicator that we can use to identify and plot the supply and demand zones supply and demand is probably one of the most essential aspects of trading with price action it can predict whether the price will rise or fall gain momentum or lose momentum if you really need to maximize your price action trading potential you need to understand supply and demand because of how well it works in this video I'm gonna show you how to draw supply and demand zones correctly and how to enter and exit your trades most importantly we'll also show you this awesome tool that we can use to automatically identify and plot the supply and demand zones if you end up finding this video helpful remember to leave a like let's get into it so what exactly is Supply and what is demand well Supply is an area where the currency pair was historically unable to go above indicating up point where the currency was perceived as overvalued sellers stepped in at these levels creating a downward pressure on the price a supply Zone can signal potential selling opportunities in the future if the price revisits that area Traders expect that the large sell orders responsible for the previous downward movement might still be present leading to another price decline on the other hand demand is an area where the currency pair was historically unable to go below representing a level where the currency pair was perceived as a good value or underpriced a demand Zone can signal potential buying opportunities in the future if the price revisits that level Traders expect that the large buy orders responsible for the previous upward movement might still be present leading to another jump in price so how do we draw a supply or a demand Zone well let's begin with the demand Zone on a naked chart as we can see here the price was consolidating while moving downwards slowly it looked like a downtrend but it also seemed like a consolidation then all of a sudden the price made a big aggressive move to the upside so what happened at this point well there must have been a level of Demand right here meaning a huge number of buy orders to identify that demand Zone you basically identify the very last bearish or red candle that was printed before the big bullish move which is this one right here take your rectangle tool and draw from the high of that candle to the low of the candle from the upper week to the lower Wick of that candle this is your demand zone so the idea is that if the price ever returns to this Zone in the future you'd look to enter a long position right here set your stop loss below below the zone and set your Tech profit somewhere above at a key level we let the trade run and take profit now the opposite is true for a supply Zone because Supply is the opposite of demand let's take a look at an example the price moved down aggressively after this bullish move identify the last bullish candle that was printed before this bearish move this is the candle you focus on draw from its low to its high this is the supply Zone in the future if the price ever returns to this Zone and bounces off it this is where you would enter your short position your stop loss goes above the zone and your take profit is going to be set at the next key level that my friends is how you identify supply and demand zones at this point you might be thinking that this process can be a bit complicated I think the same too if you can do it manually good for you but if you don't want to stare at your charts every single day waiting for those supply and demand zones you might want to use an indicator an indicator called what the is that um this is the name of that indicator let's just call it supply and demand indicator this indicator was created by JP 7fx in February of 2022. to add it to your chart open the indicator search Tab and type in supply and demand select this one by JP 7 effects this indicator was designed to identify and display the supply and demand zones on multiple time frames on your chart now before we explore this indicators component let's talk about our Channel sponsor who helped make these videos possible hanker trade handker trade is one of the most reliable Forex Brokers out there I personally use them on a daily basis as you can see here this is my trading history I mainly Scott gold and up here you can see that this is actually a live account the reason why I love hanker trade so much is because of their extremely low commissions and spreads on Forex for example the spread can go as low as 0.0 Pips which is actually the lowest it can go for those of you that love High leverage hanco trade offers a maximum leverage of 1 to 500 if that's not enough they're also going to give you a 100 bonus for all your deposits up to 25 000 so if you deposit say 25 000 they're gonna give you a bonus of 25 000 dollars so now you'll have a total of fifty thousand dollars to trade with to access the bonus as well as all the other perks sign up to hang a trade using the link in the video description now back to the video now after adding this indicator to our chart we can see several different zones it's a supply and demand indicator so the question is which of these zones represent demand zones and which ones represent Supply well the green zones are the demand zones let's take a look at this one each demand Zone has a green background fill a purple line at the top a pink line at the bottom and a green dotted line in the center which is called the 50 line this 50 line is where you'd look to enter your trades the red zones on the other hand represent Supply these zones have a red background feel then there is a pink line at the top a purple line at the bottom and the same green dotted 50 percent line in the center just like with the demand zones the 50 line in the supply zones is where you'd look to enter your trades speaking of entering trades how would you enter a long trade with this indicator well the simplest way is like this to take a long trade you basically wait for a demand Zone to be printed on your chart like this after the zone is printed you want to wait for the price to come back to the zone as it approaches the zone you want to place a buy limit order at the 50 line put your stop loss right below the demand Zone and for the take profit you could have a fixed value take profit like three times the risk or five times the risk or you could Target the next key level in price which could be an area of support or resistance or an area of Supply or demand for short trades it's going to be the opposite so you first of all want to wait for a supply Zone to be printed after the zone is printed you want to wait for the price to come back to the zone as it approaches the zone you want to set a cell limit order at the 50 line put your stop loss above the zone and for the take profit you could again set a fixed take profit value or you could Target the next key level in price now looking at the settings of this indicator we can see tons of customizable options things like the maximum supply and demand lines on the chart we can also change the supply and demand line style and the supply and demand line width we can change the line style of the 50 line the width of the 50 line and all these settings but the most important thing about this indicator is the fact that you can have it display the supply and demand zones of a time frame that is different from that of your chart so for example if you are on a five minute time frame the settings for that time frame are going to be under chart time frame now if you need to have any other time frame let's say you want to see the supply and demand zones of the one hour time frame while still being on a 5 minute time frame you simply come here under time frame 2 and right here you will be able to select any time frame that you want it could be a higher time frame or a lower time frame the indicator will be able to plot the supply and demand zones for that time frame without needing to switch to a different time frame so for this video we could go with the one hour time frame and as you can see here there's going to be this label that says one hour so these other five minute time frame labels right here are for the chart time frame because the chart is set to the 5 minute time frame but whenever you see one hour this basically represents supply and demand zones that the indicator identified on the one hour time frame and now we can be able to take trades on Lower time frames based on higher time frame supply and demand zones for the strategy we're gonna Showcase in this video we're gonna leave all the settings at the default values so click cancel now let's add two more indicators to the chart to craft our strategy around this indicator on the indicator search tab type in breakout finder select this one by launch on the blue next type in EMA select this one right here double click on the EMA to access the settings panel on in the inputs tab change the length to 100. and on this tile tab change the plot color to white now as you can see here we've added two indicators and one specific question must now be asked what is the purpose of each of these two indicators we've just added well let's start with the EMA this indicator is a trend confirmation tool we're going to be using it in this strategy to ensure that we're only going to be taking supply and demand trades that align with the Market's overall trend and I think you already know how we're gonna do that when a price is constantly trading above the moving average that indicates a bullish trend on the other hand when it's constantly trading below the moving average that indicates a bearish trend now what about the breakout finder indicator what are we gonna use it for well as the name suggests this indicator identifies breakouts in the market both bullish and bearish you see the thing with supply and demand trades is that they can be super profitable if combined with a break of structure here is what I mean when you're looking to take a long trade based off of a demand Zone you're not actually want a demand Zone to be established and for the price to shoot up aggressively solidifying that area as a demand Zone but what would make that demand Zone even better is if on its way upwards the price encounters a key Market structure like a resistance Zone and then breaks above it the significance of this is that when a price later on comes back down to retest the demand Zone the majority of the Traders will be focused on the resistance level and will be entering their trades based on a break and retest of that resistance level they'd say that the price broke that resistance level and is now doing a retest when most Traders enter their trades here and set their stop losses below the price will often do a fake out taking out all their stop losses and descending to your demand Zone and that is where we enter our trade and of course it's going to be the opposite for short trades now to show you what I mean by this let's take a look at how we could enter a long position now to enter a long trade this these are the conditions first we want the market to print a demand Zone within a bullish Trend to confirm that we just let the market play out until a demand zone is printed this zone right here represents a demand zone now to make sure that the market is in a bullish Trend we just make sure that the price is trading Above This 100 period EMA at the time the demand zone is printed and for the EMA itself we need it to be angled upwards like this and not just flat now after we have a demand Zone within a bullish Trend the next thing we want to have on our chart is for the price to break above a key level also known as a break of structure to confirm that we're just going to activate our breakout finder indicator by clicking right here and as you can see here there is this blue upward Arrow which indicates that the price broke and closed above this key level which is basically a previous resistance level indicated by this blue rectangle now looking closely at this you can see that this is the candle where our demand Zone got established and right after the demand Zone got established the price started pushing upwards aggressively and broke Above This previous resistance level this is what we're looking for a demand Zone to be established first Then followed by a break of structure the break of structure doesn't have to come immediately on the next candle it can be three candles later it could be four candles later but up to a maximum of 10 candles later 10 candles after the establishment of the demand zone now after we have our demand Zone and the break of structure we then wait for the price to come back down to the demand Zone before it gets to the demand Zone we want to have a buy limit order at this green dotted line also known as the 50 line we don't want to have it up here or down here we want to have it at the optimal price which is the 50 line we're gonna set our stop loss below the most recent string low or you can even set it just below the demand Zone if the swing low is too far down but for this particular trade we have this beautiful key level right here so we're gonna set it right at that key level and as you can see this is a really good risk to evolve ratio now we're gonna let the market play out as you can see that trade was super profitable now to enter a short trade these are the conditions first we want the market to print a supply Zone within a bearish trend to confirm that we just let the market play out until a supply zone is printed this zone right here represents a supply zone now to make sure that the market is in a bearish trend we just make sure that the price is trading below this 100 period EMA at the time the supply zone is printed and for the EMA itself we need it to be angled downwards like this now after we have a supply Zone within a bearish trend the next thing we want to have on our chart is for the price to break below a key level also known as a break-off structure to confirm that we're just going to activate our breakout finder indicator by clicking right here there's this red downward Arrow which indicates that the price broken close below this key level which is basically a previous support level indicated by this red rectangle now looking closely at this you can see that this is the candle where our supply Zone got established and right after the supply Zone got established the price started pushing down aggressively and broke below this previous support level this is what we're looking for a supply Zone to be established first Then followed by a break of structure again the breakout structure doesn't need to come immediately on the next candle it could come three candles later or four candles later but up to a maximum of 10 candles later 10 candles after the establishment of the supply zone now after we have our supply Zone and break off structure we then wait for the price to climb back up to the supply Zone before it gets to the supply Zone we want to have a sell limit order at this dotted line we're gonna set our stop loss above the most recent swing High for the take profit we have this beautiful key level right here so we're gonna set it right at that key level and as you can see this is a really good risk to reward ratio now we're gonna let the market play out and see what happens foreign as you can see that trade was super profitable in conclusion this indicator provides a powerful tool for Traders seeking to leverage supply and demand Dynamics in conjunction with market trends by offering the ability to view different time frames at the same time and integrate it with other indicators it maximizes efficiency and accuracy in trading decisions that's been it for this video I hope you found some value if you did hit the like button below and consider subscribing to stay tuned thanks for watching see you next time foreign

Channel: PineTrades

Views: 71,351

Keywords: scalping trading strategy, forex trading, trading forex, forex, crypto trading, trading strategy, day trading, swing trading, profitable trading strategy, best scalping trading strategy, forex scalping strategy, best scalping strategy forex, Profitable Buy Sell Indicator, buy sell indicator tradingview, hankotrade, pinetrades, supply and demand, supply and demand trading strategy, supply & demand course, supply & demand indicator, breakout finder tradingview, breakout finder

Id: Wvw0hqSn6j8

Length: 17min 5sec (1025 seconds)

Published: Wed Aug 23 2023