OrderBlock/SupplyDemand PRO

2023年10月29日

🎯 Overview:

Supply and Demand trading has been becoming one of the most popular trading strategies over the past year. Supply and Demand trading is a trading technique based on finding key zones which price can bounce off of.

While most indicators only look at 1 time frame, this indicator looks at many timeframes(you can turn them on/off in the settings). This allows for a much better overview of zones and allow you to make better decisions.

This indicator processes Supply/Demand differently. While most indicators only have 1 type of Supply/Demand, this indicator filters price action, and decides which zones are the best given the momentum and price action, allowing for higher accuracy.

This indicator is specifically designed for Stocks, but the usage in other markets is possible(I haven’t tested in other markets but feel free to try yourself). There are many other paid supply/demand indicators out there, but even so, many of them aren’t as accurate or usable as this one. I am giving this out for free, as I want to help everyone instead of asking you to pay me just for access.

🎯 Optimization:

I set the default settings so that they work the best on SPY. If you decide to trade another specific ticker, you may need to change the settings to fit it. The main settings that should be modified should be the 3 ATR settings.

1. ATR Multiplier for valid OB: This is the multiplier for the minimum breakout. This indicator looks at 2 different breakouts(strong and weak breakouts). Depending on the type, it will draw S/D at different areas.
   
2. ATR Multiplier Inside/Outside: The S/D key levels, and then adds/subtracts the ATR multiplied by this multiplier to get the zone. The inside multiplier is the multiplier for the inside of the zone, so the area where the price will enter. The outside is the side where it will exit. After price has a full candle outside of the zone, the zone will be deleted.
   

🎯 Usage:

There are many ways you can incorporate this into your trading from confirming your bias to helping you take profits at zones you didn’t see. For example, if you are looking to go long and we are in a huge supply zone, you should definitely pay more attention. If you are looking at price action, and it seems bearish, you can use this indicator to confirm your bearish thesis if we are near a huge supply zone. If your thinking of going long, but it's in supply, maybe pay more attention(unless you're looking for a breakouts)

There are 2 modes in the indicator:

1. Orderblock Mode: This will show all the valid zones that have not been hit at all. This is very useful if you want to play “set and forget” plays. Once a zone is hit, the zone will be deleted. I don’t use orderblocks too often so the orderblocks generated are the same as Supply/Demand zones. Don’t trade strictly off of this unless you know what you're doing, I did not do extensive testing with this mode.
   
2. Supply/Demand Mode: This shows all zones that have not been broken. This is much more useful than the Orderblock mode(imo) but is a bit harder to read. When consolidating without much trending, Supply/Demand will be drawn on top of each other at the highs, causing “strong supply/demand”, which is often misleading. Zones will only be deleted with a full close outside of the zone, below for demand and above for supply. Don’t trade strictly off of this unless you know what you're doing, but I did do much more extensive testing with this setting.
   

🎯 Example Strategy:

Here’s an example of a very simple strategy you can use, using the Supply/Demand mode of this indicator:

• Look for an entry into a zone(preferable a current timeframe zone)
  
• After entering, wait for price to cross a EMA or MA
  
• Enter the trade:
  
• -> If going LONG: SL below previous low, TP at a fixed RR or another strong zone
  
• ->If going SHORT: SL above previous high, TP at a fixed RR or another strong zone
  

Here is an example trade you can take:

1. Look for an entry into a key zone.

2. Look for a crossover/crossunder of the MA(this is the 50MA). Set TP and SL at appropriate levels(1:2 RR and near key levels)

3. Watch play playout

I guarantee you that this strategy has a win rate of less than 100%, so do not ask me why it doesn’t work 100% of the time. If you're going to ask me this, trading isn’t for you or go do some more research. This is just a tool you can use.

🎯 Current Limitations:

1. Can not filter zones. When you double click the timeline zoom, the boxes are so high/low that it slows way too many zones too far apart. I haven’t been able to figure out a way to “delete” the zones if they are a certain % away from price, and then have it show again if it's close enough.
   
2. Memory limitations. When backtesting(or for me at least), I will run into a “Memory Exceeded” Error after replaying 1 bar. The only way to reset this is by changing a setting and reverting it in the settings, or going a few bars in the future and re-replaying it back to the previous candles.
   

If anyone would like to try to help out, feel free to DM me. Any help is appreciated :)

2024年2月18日

發行說明

1. Reduced timeframes to 4 for cleaner chart and backtesting compatibility
   
2. Slightly updated settings for SPY. Default settings are still for SPY
   

2024年4月20日

發行說明

Added alerts on the formation of boxes. I would suggest setting personal alerts at the levels(if you like the zone).

Alerts will be activated on the chart's current timeframe. If you need alerts for multiple timeframes, set an alert for each timeframe you want alerts for.