Supply and Demand Candles for ThinkorSwim

[BenTen]

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

• 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

# 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);

 

[aliahmed]

Hi Ben,

Can we modify this study to make the candle color adjustable to any given supply percentage?

 

[BenTen]

@aliahmed Of course. You should be able to modify the script for that.

 

[tradeimbalances]

Hi

Has anyone had success with this?

 

[MerryDay]

@tradeimbalances This study is not a strategy in itself upon which one can measure 'success'. This indicator might have some validity as part of your existing overall strategy.

The ancient laws of Supply and Demand is the amount of an instrument that is available and the desire of buyers for it, drive the price. It identifies zones on the chart where demand overwhelms supply (the demand zone), driving the price up or where supply overwhelms demand (the supply zone), driving the price down. If this indicator is not in a 'boring' zone, supply and demand are not in balance, lending credence to your strategy that something is going to happen.

 

[Six6God]

Is there a reason that sometimes this works and sometimes it doesn't?

 

[MerryDay]

@Six6God This study identifies 'boring' and 'exciting' zones. If the equity does not have any boring or exciting zones at the moment. There will not be anything to see.

 

[Gellidus]

Hi all,

How do I set that the boring candle body is 50% smaller than the whole body include the wick. It means the shaded part of the candle that have body less than 50% of the candle range.?

Mark a candle blue if its body (open-close) is less than 50% of candle size ( high-low )

Here is the pinescript. Can someone convert?

study("Boring Candle", overlay=true)
candleColor = ( abs(open-close)/abs(high-low) > 0.5 )? (open < close ? green : red) : blue
plotcandle(open, high, low, close, color = candleColor)

 

[MerryDay]

def Boring = Body_Range <= Candle_Range * 0.5;

Hi all,

How do I set that the boring candle body is 50% smaller than the whole body include the wick. It means the shaded part of the candle that have body less than 50% of the candle range.?

Mark a candle blue if its body (open-close) is less than 50% of candle size ( high-low )

Here is the pinescript. Can someone convert?

study("Boring Candle", overlay=true)
candleColor = ( abs(open-close)/abs(high-low) > 0.5 )? (open < close ? green : red) : blue
plotcandle(open, high, low, close, color = candleColor)

# #######################################
plot boringCandle = absValue(open-close) /absValue(high-low) > 0.5  ;
boringCandle.hide();
AssignPriceColor(if boringcandle then color.blue else color.current);
# #######################################

 

[JorgeLUC]

Hi @MerryDay , some time of this fantastic thread.

I use supply/demand/imbalance on my trading and although is hard to master, i think is a great view of the market and let you predict some great reversals.

Is there a way to scan for this exciting candles?? i tried myself but im unable to create a scanner.

Thank you so much guys

 

[MerryDay]

Hi @MerryDay , some time of this fantastic thread.

I use supply/demand/imbalance on my trading and although is hard to master, i think is a great view of the market and let you predict some great reversals.

Is there a way to scan for this exciting candles?? i tried myself but im unable to create a scanner.

Thank you so much guys

Add to the bottom of your study. Select your study in the Scan hacker. Filter is: scan is true

plot scan = exciting ;
scan.hide();

 

[JorgeLUC]

Thankssss @MerryDay
Works like a charm

And was very easy for somebody like me that i started with TOS three months ago.

 

[spartan.ts]

in case this helps or want to use. I noticed Merry added a Supply/Demand Candle script (https://usethinkscript.com/threads/supply-and-demand-candles-for-thinkorswim.652/#post-97196)
i have modified this to use MTF to have a horizontal .10 zone plotted

# Supply and Demand Candles
# Assembled by BenTen at useThinkScript.com
# Converted from https://www.tradingview.com/script/KRlFYBWy-Demand-and-Supply-Candles-open/
input aggPeriod = AggregationPeriod.FIFTEEN_MIN;
def h = high(period = aggPeriod);
def l = low(period = aggPeriod);
def c = close(period = aggPeriod);
def o = open(period = aggPeriod);
input Sensitivity = 1.5;
input range = .05;
def Candle_Range = h - l;
def Body_Range = AbsValue(c - o);
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;
def excitingcolor = if c > o then 1 else 0;


def hc0 = if Exciting  then o  else  hc0[1];
plot  hc = hc0;
plot hch =   hc + range ;
plot hcl = hc - range ;
 
 
hc.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
hc.AssignValueColor( if excitingcolor == 1  then color.blue  else if excitingcolor == 0 then  color.red else Color.CURRENT);

hch.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
hch.AssignValueColor( color.gray);

hcl.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
hcl.AssignValueColor( color.gray);
#def hcolor = if excitingcolor == 1  then color.light_green else if excitingcolor == 0 then  color.light_red else Color.CURRENT;
AddCloud(hch,hcl,  color.cyan, color.green);

 

[Ryguy]

in case this helps or want to use. I noticed Merry added a Supply/Demand Candle script (https://usethinkscript.com/threads/supply-and-demand-candles-for-thinkorswim.652/#post-97196)
i have modified this to use MTF to have a horizontal .10 zone plotted

# Supply and Demand Candles
# Assembled by BenTen at useThinkScript.com
# Converted from https://www.tradingview.com/script/KRlFYBWy-Demand-and-Supply-Candles-open/
input aggPeriod = AggregationPeriod.FIFTEEN_MIN;
def h = high(period = aggPeriod);
def l = low(period = aggPeriod);
def c = close(period = aggPeriod);
def o = open(period = aggPeriod);
input Sensitivity = 1.5;
input range = .05;
def Candle_Range = h - l;
def Body_Range = AbsValue(c - o);
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;
def excitingcolor = if c > o then 1 else 0;


def hc0 = if Exciting  then o  else  hc0[1];
plot  hc = hc0;
plot hch =   hc + range ;
plot hcl = hc - range ;
 
 
hc.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
hc.AssignValueColor( if excitingcolor == 1  then color.blue  else if excitingcolor == 0 then  color.red else Color.CURRENT);

hch.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
hch.AssignValueColor( color.gray);

hcl.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
hcl.AssignValueColor( color.gray);
#def hcolor = if excitingcolor == 1  then color.light_green else if excitingcolor == 0 then  color.light_red else Color.CURRENT;
AddCloud(hch,hcl,  color.cyan, color.green);

Hey there, Thank you so much for coding this. This is FANTASTIC!!! It has definitely helped me spot the major levels I look for since I trade Supply and Demand. This works great with the chart time I prefer to trade on without having to actually change the time frame since this is a multi time frame indicator you made. (don't get me wrong, Ill still change the time frame on the graph to check my work). Thank you so much!

 

[beerguyster]

in case this helps or want to use. I noticed Merry added a Supply/Demand Candle script (https://usethinkscript.com/threads/supply-and-demand-candles-for-thinkorswim.652/#post-97196)
i have modified this to use MTF to have a horizontal .10 zone plotted

# Supply and Demand Candles
# Assembled by BenTen at useThinkScript.com
# Converted from https://www.tradingview.com/script/KRlFYBWy-Demand-and-Supply-Candles-open/
input aggPeriod = AggregationPeriod.FIFTEEN_MIN;
def h = high(period = aggPeriod);
def l = low(period = aggPeriod);
def c = close(period = aggPeriod);
def o = open(period = aggPeriod);
input Sensitivity = 1.5;
input range = .05;
def Candle_Range = h - l;
def Body_Range = AbsValue(c - o);
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;
def excitingcolor = if c > o then 1 else 0;


def hc0 = if Exciting  then o  else  hc0[1];
plot  hc = hc0;
plot hch =   hc + range ;
plot hcl = hc - range ;
 
 
hc.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
hc.AssignValueColor( if excitingcolor == 1  then color.blue  else if excitingcolor == 0 then  color.red else Color.CURRENT);

hch.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
hch.AssignValueColor( color.gray);

hcl.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
hcl.AssignValueColor( color.gray);
#def hcolor = if excitingcolor == 1  then color.light_green else if excitingcolor == 0 then  color.light_red else Color.CURRENT;
AddCloud(hch,hcl,  color.cyan, color.green);

Thanks buddy. Setting this to a higher time on a much lower time chart appears to clear up quite a bit of noise. Cant wait to try it in real time.