Concept of Zones
The concept of zones is confusing to some traders. And most tend to believe it's not a concrete concept to be relied upon as they don't exactly know where to draw the lines precisely that best represents the zones.
A is where most traders placing their buy order based on the historical trade analysis; these areas could be found at the lowest low with strong support levels. A is formed where price is most deviated from it's equilibrium market price in lower direction where most sellers has exhausted their energy along the way and the buyers has regained their energy for a momentum.
A is where most traders placing their sell orders. These are are often found at the highest high with strong . A is formed where price is most deviated from it's equilibrium market price in higher direction where most buyers has exhausted their energy along the way and the sellers has regained their energy for a momentum.
Underlying Algorithm used in the indicator
I am using the of concept of "Frequency Lines" to calculate the areas. Lines with the highest frequency has the most support and resistant strength to cause a reversal on the opposite direction.
Settings and Stylings
Lookback : Default is 50 (The lookback period for calculatibf )
No of Pivots: Default is 3 (The maximum number of to consider, higher will result more boxes)
Aligned: Default is True
Whether to align the supply demand levels or not. If true, it will check the deviation of adjacent supply demand levels, if they are very close it will align themselves vertically to create a single level of support or resistance.
A layout with the levels not aligned
This levels also will most of the times work as levels.
I haven't added any other extra features to make the performance robust. Although I might add in future upon requests.
For now I am keeping it in protected mode, as this is my first indicator script and I am unsure of what to expect from it, but If I get enough of your support and love, I might make the source code public.
Thank you for visiting my page and I hope this helps in your trading journey. If it does truly help, follow me as I will be publishing many more indicators soon.
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