This indicator highlights supply and demand zones.
Method to detect the zones:
1.- The body of the candle is calculated and it is checked how many times it can be repeated in its highest or lowest wick. If the body of the candle is repeated N number of times (Min. Factor) in any of its wicks, it is taken as an indecision zone. 2.- The subsequent candles are reviewed (Confirmation Bars) to determine if the zone is of supply or demand. For demand zones, subsequent prices must be above the minimum price of the indecision zone and for supply zones, subsequent prices must be below the maximum price of the indecision zone. 3.- The previous average volume of N periods (Periods) to the indecision zone is calculated and check that has a minimum percentage change (Min. Volume Change) with respect to the indecision zone and its subsequent candles (Confirmation Bars).
If the previous steps are met, the zone will be highlighted with a green color for demand (Zones/Demand) and red for supply (Zones/Supply), for the indecision zones (identified by point 1) they will be highlighted in gray (Zones/Indecision)
Invalid zones are automatically hidden from the chart, using methods such as: "wick" and "close".
Settings
Indecision
Min. Factor: Set the number of times that the body of the candle must be repeated in its wicks. High values will be stronger indecision zones, but fewer will be found, low values will find more zones.
Invalidation Method: Method used to automatically invalidate zones. It can be "wick" or "close".
Confirmation Bars: Defines the number of candles used to confirm an indecision zone found
Volume
Min. Volume Change(%): Percentage of minimum change in volume (+/-) that the zone must have to be displayed
Previous Periods: Number of previous periods to be used to calculate the average volume prior to the indecision zone.
Zones
Show Last.- Number of zones (demand, supply, indecision) to be shown.
Demand.- Color to highlight the demand zones
Supply.- Color to highlight the supply zones
Indecision.- Color to highlight the indecision zones
Use
The highlighted supply and demand zones can be used as support or resistance to place orders.
Notas de Lançamento
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Alerts for new zones confirmed
Alerts for price reached zone
Use of new pine feature types which represents User Defined Object Types.
Moving label of volumen change
Algorithm for deleting overlapping zones
Notas de Lançamento
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Refactor
Adding signals (Buy / Sell)
Showing numbers of bars reached the zone
Using only bars confirmed to avoid repainting
Notas de Lançamento
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Changing default params for signals
Notas de Lançamento
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Default params 1 to 2
Notas de Lançamento
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- Minor Bug Fix - Refactor some code - Adding setting to font size
Do you think about alert condition for this script? E.g new new box is ploted - alarm with % (the reaction will be faster, especially on the wicks)
CaLaHe
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@matchu183, Thanks, Thanks, i updated script with alerts for new zones confirmed and alerts for price reached zone. Enjoy it!
Slick_SiD
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@CaLaHe, love this one. These are greatly placed responsive zones and typically only Premium SMC indicators have built in zone confirmation and price reach alerts. Great work! I did want to ask for you to explain the percentage at each zone in layman’s terms. What exactly do they represent? Do they represent the zone’s strength in any way?
CaLaHe
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@Slick_SiD, Represent the change of volume respect avg of previous bars, higher values are strong zones.
Slick_SiD
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@CaLaHe, is there anyway to tweak the script to work on the 1min timeframe for Forex pairs? I tried rewriting the min val for the percentage change to 0.01 but it didn’t work. Forex doesn’t move that quick on 1m so no zones display.
ukmpits
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@CaLaHe Sir, would you like to add multitimeframe function on These Script? Thanks mate
Janter_pangemanan
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Thank you, God Bless you.
ukmpits
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@CaLaHe Sir, Is there any future Improvement? Thanks mate