Supply & Demand (MTF) | Flux Charts

How it works

The Supply and Demand indicator identifies trading zones by detecting momentum candles with larger bodies compared to average chart candles. It requires at least four consecutive momentum candles to draw a supply or demand zone, which is drawn from the high and low wicks of two candles preceding the momentum sequence.

The zones are created by identifying where significant trading activity occurs, representing potential areas of market maker interest. By analyzing candle bodies and wicks, the indicator automatically plots zones that represent potential support and resistance levels across multiple timeframes.

Why it may be useful

Supply and demand zones provide traders with critical insights into potential market turning points and price action momentum. These zones help identify where large market participants are likely to enter or exit positions, offering valuable information about potential trend reversals or continuations.

By visualizing these key trading areas, traders can make more informed decisions about entry and exit points. The multi-timeframe approach enhances the reliability of these zones by confirming supply and demand levels across different time horizons.

When to explore it

The Supply and Demand indicator works best in markets with clear trending behavior and significant institutional trading activity. Traders should focus on using this indicator in liquid markets like forex, stocks, and cryptocurrencies where market maker movements are more pronounced.

The indicator is particularly useful when combined with other technical analysis tools to confirm potential trade setups. Traders can benefit from its insights during breakout scenarios, trend confirmations, and when seeking high-probability entry and exit points in various market conditions.

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