Supply and Demand Zone ConfirmationHello traders and investors,
Today, I am going to share an indicator that I made by mixing RSI and CCI in different timeframe. You can use this indicator in various ways, however the best possible way I would recommend you to use it is to combine it with price action. I would suggest to play with, so you can decide if it works the best for you.
The whole purpose of making this indicator was to eliminate confusion around different indicators for overbought and oversold and many other headaches. You use price action and you are looking for confirmation to see there is a PRZ? here is your indicator. I found there are certain patterns with CCI and RSI in higher timeframe which helps to find the PRZ and I made this indicator with it.
You can choose to use this indicator in different timeframe. But you have to consider, the lower timeframe you'll go, you will get more signals but the effectiveness goes down with it. Also, if you are willing to change the time frame, You have to change some settings as well which I'll get into it in a moment.
The default settings are for 30min timeframe with these settings.
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In case you would like to go to 15min time frame, here is the suggested changes in the setting.
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I would suggest to play with different timeframe to find the suitable setting for the pairs you would like to trade. The main goal is you have to choose first CCI one timeframe higher ( if you are in 5min chart, first CCI should be at least 15 or 30min) and the second CCI one timeframe higher than first CCI (if you choose 15min for first CCI, go with 1hr for second CCI). And lastly, RSI can be variable but it is suggested to be at least as low as first CCI timeframe.
Lastly, you have to consider nothing in this script is a financial advice, it is only to help you improve your trading style by making other indicators as simple as possible.
