Dynamic Zones

Dynamic Supply and Demand indicator automatically identifies and displays Supply and Demand Zones on your chart based on price action patterns and market structure. 

**For the first 50 candles (number depends on LookBackCandles) when indicator is first activated, the dynamic zones do not apply yet.

The indicator scans historical price data to identify:

• Demand Zones (Support areas) - displayed in Aqua color [Can be modified under Inputs]
• Supply Zones (Resistance areas) - displayed in Tomato color [Can be modified under Inputs]

Zone Identification

The indicator uses a multi-layered algorithm that looks for specific candlestick patterns:

1. Impulse Candle Analysis: Identifies strong bullish or bearish candles with high body-to-wick ratios
2. ATR Filtering: Uses Average True Range to ensure zones are formed during significant price movements
3. Multi-Candle Confirmation: Analyzes 3-candle sequences to confirm zone validation

The zones created will react to price movements in the following way:

• If prices touched the zone (defined as price closing within the zone), the zones will stop expanding to the right
• If prices has not yet touched the zone, the zone will keep expanding to the right as the zone remain usable
• If 2 or more zones are plotted over the same price range, only the most recent zone will be kept, the rest will be deleted

Inputs