The ancient laws of Supply and Demand are about how much of a stock or asset is available and how many buyers want it.
This indicator uses the ATR to define whether the price level is out of balance, indicating there might be a significant move about to happen --exciting zone. Or if they are in balance --boring zone.
Notes by the original developer:
This Script helps you identify the basing and explosive candles which can be used for Supply and Demand Analysis methodology
This indicator uses the ATR to define whether the price level is out of balance, indicating there might be a significant move about to happen --exciting zone. Or if they are in balance --boring zone.
Notes by the original developer:
This Script helps you identify the basing and explosive candles which can be used for Supply and Demand Analysis methodology
- Blue Candle represents the Boring Candles ==> Demand and Supply is in balance
- Black Candle (the one in ThinkorSwim is white) represents the Exciting Candles ==> imbalance between Demand and Supply
thinkScript Code
Code:
# Supply and Demand Candles
# Assembled by BenTen at useThinkScript.com
# Converted from https://www.tradingview.com/script/KRlFYBWy-Demand-and-Supply-Candles-open/
input Sensitivity = 1.5;
def Candle_Range = high - low;
def Body_Range = AbsValue(close - open);
def Bar_Lookback = 100;
def Volatility = atr(Bar_Lookback);
def Strength = Volatility * Sensitivity;
def Exciting = (Body_Range > Candle_Range* 0.6) and (Candle_Range >= Strength);
def Boring = Body_Range <= Candle_Range * 0.5;
assignPriceColor(if Exciting then Color.WHITE else if Boring then Color.Blue else Color.Current);
Attachments
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