RedK_Supply/Demand Volume Viewer v1

How it works

VolumeViewer calculates volume supply and demand by analyzing price bar characteristics. It assigns a percentage of demand based on the bar's shape, giving extra weight to price bar wicks. The indicator then applies a weighted moving average to smooth the demand and supply lines.

By comparing these lines, traders can visualize the balance between buyers and sellers. The calculation considers green bars as primarily demand and red bars as primarily supply, with neutral bars split evenly

Why it may be useful

This indicator provides traders with a unique perspective on market dynamics by translating volume data into actionable supply and demand insights. It helps identify potential accumulation or distribution phases in trading instruments.

By revealing imbalances in market forces, traders can better understand underlying buying and selling pressures. The visual representation makes it easier to spot key price levels and potential reversal points. It offers a simplified yet effective way to analyze volume without complex Level II or bid/ask data

When to explore it

VolumeViewer works best when analyzing stocks and instruments with reliable volume data. It is particularly useful for identifying potential support and resistance levels based on volume imbalances. Traders should use it in conjunction with other trend and momentum indicators to confirm signals.

It's most effective during periods of significant price movement or when trying to understand market sentiment. The indicator can help traders assess whether buyers or sellers are in control during different market phases

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