OWL Supply and Demand Detector

OWL Supply & Demand Detector v1.01

Simple & Complete User Guide

What is it? The OWL Supply & Demand Detector is a MetaTrader 5 indicator that automatically finds Supply zones (selling areas) and Demand zones (buying areas) on the chart. It also shows how strong each zone is, whether it has been tested, and includes a clean dashboard with useful information.

Main Features

• Automatically draws Supply and Demand zones
• Gives each zone a strength score from 1 to 5 stars (★★★★★)
• Shows if a zone is Fresh, Tested, or Mitigated
• Counts how many times a zone has been retested
• Displays a professional dark dashboard with key statistics
• Optional alerts when price enters a fresh zone
• Clean and easy-to-read visuals

How It Works (Simple Explanation)

1. The indicator looks for a base candle (the turning point candle).
2. Then it checks if strong candles moved away from that base (called impulse candles).
3. If it finds enough impulse candles, it draws a rectangular zone.
4. The zone gets a strength score based on how strong the move was.
5. As price moves, the indicator updates whether the zone is still fresh, has been tested, or has been broken (mitigated).

Supply Zone = Good area to sell Demand Zone = Good area to buy

Important Input Settings (Recommended Values)

You can change colors if you want, but defaults are good for most users.

How to Use the Indicator

1. Install

   • Put the file in MQL5 → Indicators folder
   • Compile in MetaEditor
   • Drag it onto any chart

2. What You See on the Chart

   • Colored rectangles (red = Supply, green = Demand)
   • Labels with stars showing strength
   • Small text showing age and retests
   • Retest markers (◆ RETEST) inside tested zones
   • Dashboard in the top-left corner

3. Simple Trading Strategy (Recommended)

   • Look for Fresh or Tested zones with 3 or more stars.
   • Wait for price to return to the zone.
   • Look for a candlestick reversal pattern (pin bar, engulfing, etc.) inside the zone.
   • Buy near Demand zones
   • Sell near Supply zones
   • Place Stop Loss just outside the zone
   • Target the next opposite zone or use 1:2 risk-reward

Best Tips:

• Fresh zones (never touched) are the strongest.
• Zones with 4–5 stars are more reliable.
• Use on H1, H4, or Daily timeframes for better results.
• Combine with trend direction (buy in uptrend at Demand, sell in downtrend at Supply).

Dashboard Explained

The dashboard shows:

• Total Supply and Demand zones
• How many are Fresh, Tested, or Mitigated
• Current price
• Nearest Supply zone above price
• Nearest Demand zone below price
• Short list of all active zones with strength and age

It helps you quickly see the most important zones without cluttering the chart.

Best Settings to Start With

• Lookback: 400
• Max Zones: 8
• Min Impulse: 2
• Zone Buffer: 0.05
• Opacity: 65
• Show Mitigated: false
• Alerts: true (if you want notifications)

Summary

The OWL Supply & Demand Detector is a clean and useful tool for price action traders. It removes the hard work of manually finding zones and gives you clear strength information and a helpful dashboard.

It works best when you:

• Wait for price to retest the zones
• Use higher timeframes
• Add simple candlestick confirmation
• Manage risk properly