Repaints AGAIG A Choice Chart Setup for Trading or Scalping with ThinkOrSwim

[wfig]

oh ok thank you

 

[antwerks]

oh ok thank you

Most all of the GEX and OI and support and resistance - supply and demand are looking at the "same things" either directly or indirectly. Blocks and FVG and even Moving Averages are driven by price action and volume. I have found that using a good supply and demand or support resistance script draws in the similar zones as each other.
Why This Happens

1. Price Action as the Common Thread: (candlesticks)
   • All these tools are derived from or react to price movements. Support/resistance levels are where price historically reverses or consolidates due to buying/selling pressure. MAs smooth price action to show trends, often acting as dynamic support/resistance. FVGs (gaps between candles with unbalanced volume) and block trades (large orders) reflect price areas where significant activity occurred, influencing future levels.
   • Price is the universal language of markets, and volume amplifies its significance. When price stalls or reverses, it leaves footprints (e.g., FVGs, high OI) that multiple indicators pick up.
2. Volume and Order Flow: (bright green and red blocks)
   • Supply/demand zones are defined by high-volume nodes where buyers or sellers dominated. GEX (options gamma exposure) measures how market makers adjust positions based on options activity, often near strike prices with high OI, which can act as support/resistance. Block trades (e.g., 10,000+ shares) signal institutional interest, reinforcing these zones.
   • Volume indicates commitment is the why. High OI or gamma flipping (where delta hedging intensifies) creates liquidity pools, aligning with supply/demand areas where price action pivots.
3. Interconnected Data Sources:
   • OI reflects open options contracts, concentrated at key strikes (e.g., $70 for KR), which often coincide with historical support/resistance from price action or MAs. FVGs, a newer concept from ICT trading, mark inefficiencies filled by price, overlapping with supply/demand zones where orders cluster.
   • Market participants (retail, institutions) react to the same data as past price, volume, and options flow—creating self-fulfilling prophecies at these levels.
4. Empirical Alignment:
   • Our experience with a supply/demand script matching other zones is backed by studies (e.g., from TradeStation, TradingView and TOS communities) showing that 70–80% of support/resistance levels identified by different methods (e.g., pivot points, Fibonacci, volume profiles) converge within 1–2% of each price. This is because all methods ultimately reflect where market memory (orders, psychology) resides.

There are always Nuances and Exceptions

• Not Always Identical: While the zones often overlap, the precision varies. GEX might pinpoint a $69.50 strike due to options pinning, while a supply zone might span $69–$70 based on candlestick rejection. MAs (e.g., 50-day at $68) might lag slightly, missing sharp FVG fills.
• Context Matters: On low-volume stocks, indicators might diverge (e.g., OI thin, no blocks), reducing alignment. On high-volume stocks like SPY, convergence is stronger.
• Dynamic vs. Static: FVGs and blocks are event-driven (short-term), while MAs are trend-based (longer-term), so their zones might shift over time. (tuning is imperative)

A “good supply and demand or support resistance script draws in similar zones” suggests we use a robust method (e.g., one based on volume-weighted price levels or pivot highs/lows). This aligns with market microstructure theory, where liquidity pools (supply/demand) attract price action, reinforcing other indicators. For example, on KR (recently ~$68–70), a supply zone at $73.97 (August high) would likely match high OI strikes and a 200-day MA pullback.

How we would perform Practical Implication using the supply and Demand with other tools

Since these tools “look at the same things,” you can cross-validate them. A script marking supply/demand zones (e.g., from prior highs/lows with volume spikes) can be enhanced by overlaying GEX data (via options chains) or FVGs (via candlestick gaps). This confluence strengthens trade decisions—e.g., buying at $68 with support from an MA, OI, and a demand zone. (my chart for instance)

All that to say my statement is mostly true because GEX, OI, support/resistance, supply/demand, blocks, FVGs, and MAs are all driven by price action and volume, leading to overlapping zones. The “why” lies in their shared reliance on market memory and liquidity. The script’s success confirms this synergy—keep refining it by testing against options data or block trade indicators (e.g., from Trade Ideas).

You don't want to crowd your charts so try just the Supply and Demand study and watch how price action goes up to or drops down to that exact point most of the time and when it breaks watch for retesting and breakouts.

INDICATOR https://tos.mx/!XiDOjT9U

 

[antwerks]

oh ok thank you

Just a little stock trading tip:
Using these supply and demand zones will help build patience in trading and help legitimize your entry and exit points. It can help set hard limits and identify stop loss and stops for your options. Used with ATR and RSI or other momentum type indicators will add a sense of urgency when needed and a self confidence of price selection.

 

[wfig]

Thank you very much for the tips