• Overview
  • Reviews
  • Comments (11)

Zones of supply and demand

Zones of supply and demand indicator calculates the support and resistance levels, as their clusters in narrow ranges form supply and demand zones.

The zones can be clearly seen on a chart when using the indicator. The levels construction is based on impulse movements, or rather impulse movements start levels.

5 impulses (waves) determining (fixing) algorithms are implemented in the indicator. That allows to carry out a precise tuning of the indicator to satisfy the needs of even the most demanding user. Each level passes through four «life» phases. After the fourth one is complete, the level is no longer relevant as support/resistance defining tool. Therefore, it is not displayed in real time any more.

A user can always see in real time, which of the four life phases each level is located at. This allows to quickly evaluate the current situation. The main criteria for identifying the impulses are size (in points), duration (in bars) and uniformity (according to the selected waves fixing algorithm). These criteria are set by a user in the indicator external parameters.

Level life phases:
  1. The level has been formed but the price has never reached it. Such a level is displayed in real time as a continuous bright line (by default);
  2. The level has already been tested (touched or pierced) once or several times but has not been broken. The level is displayed as a faint colored continuous line (by default);
  3. The level was breached once, after that it has changed from support to resistance or vice versa. The level has never been touched by the price since the breakout and transformation. The level is displayed as a dotted line having the opposite bright color (by default);
  4. The level has been tested once or several times by the price since the breakout and transformation. The level is displayed as a dotted line having the opposite faint color (by default).

In case the level has been broken after the fourth phase, it is no longer relevant as support/resistance defining tool. Therefore, it is not displayed in real time any more.

External variables description:

  • AlgTypeWaves fixing algorithm:
    1 - МА reversal (fast МА setting parameters);
    2 - two МАs crossing (fast and slow МА parameters);
    3 - high/low breakout of the previous bar (no additional setting parameters);
    4 - MACD basic line reversal (fast and slow МА parameters);
    5 - MACD basic and signal lines crossing (fast and slow МА and MaSignPer parameter).
  • MaFastPer - fast МА period;
  • MaFastMeth - fast МА smoothing method;
  • MaFastApPrice - fast МА calculation values;
  • MaSlowPer - slow МА period;
  • MaSlowMeth - slow МА smoothing method;
  • MaSlowApPrice - slow МА calculation values;
  • MaSignPer - MACD signal line smoothing period;
  • NumbBarsCheck - depth (in bars) of searching the levels in history;
  • DrawWavesOn - displaying the impulses forming the levels;
  • VolPer - average volatility calculation period;
  • VolTf - volatility calculation time frame (a day, by default);
  • CheckBreakVol - considering volatility during a breakout;
  • VolSize - % of the average volatility (hereinafter - av. vol.) for confirming a breakout;
  • MinImpSize - minimum allowable wave size (in % of av. vol.) for an impulse identification;
  • MaxImpSize - maximum allowable wave size (in % of av. vol.) for an impulse identification;
  • MinImpDuration - minimum allowed wave duration (in bars) for an impulse identification;
  • MaxImpDuration - maximum allowed wave duration (in bars) for an impulse identification;

Setting the impulses color and style:

  • UpWavesColor;
  • UpWavesStyle;
  • DwWavesColor;
  • DwWavesStyle;

Setting support/resistance levels color and style at different phases:

1st phase:

  • UpLevColor;
  • UpLevStyle;
  • DwLevColor;
  • DwLevStyle;
2nd phase:
  • UpLev2Color;
  • UpLev2Style;
  • DwLev2Color;
  • DwLev2Style;
3rd phase:
  • UpLev3Color;
  • UpLev3Style;
  • DwLev3Color;
  • DwLev3Style;
4th phase:
  • UpLev4Color;
  • UpLev4Style;
  • DwLev4Color;
  • DwLev4Style;

Names of graphic objects:

  • WaveName – impulse;
  • LevName – level.

The names of the graphical objects are moved to the external variables to prevent a conflict when more than one indicator of that kind is used on one chart, i.e. four-symbol names of the graphical objects should be different in that situation.

Attention! The default settings are defined for Н1/М30 time frames.
No reviews