Supply & Demand Zone Indicators @TradingView by DGT - KapoorChandra
Introduction
In this section, the speaker introduces the concept of supply and demand and how it affects trading.
Supply and Demand Concept
- The price moves in the market as a result of shifts in supply and demand.
- Institutional traders want to add to their position when the price comes back to a certain area.
- Retail traders should be familiar with institutional traders' way of thinking.
Understanding Supply and Demand
In this section, the speaker explains what supply and demand is.
What is Supply and Demand?
- For someone to buy at a certain price, there has to be other traders willing to buy at a worse price than them.
- The exact opposite applies for selling side of trading.
Example of Supply and Demand
In this section, the speaker gives an example of how supply and demand works in everyday life.
Example: Dollar Snickers on Supermarket
- If a dollar snickers goes up to 5 dollars, people won't buy it.
- But if it goes down to one dollar, people will want to buy it.
- The same applies in trading where institutional traders don't want their positions on the losing side.
Indicators for Trading with Supply & Demand Concept
In this section, the speaker showcases two indicators that can be used for trading with supply & demand concept.
Indicator 1: "Supply & Demand MultiTimeFrame FREE" by KapoorChandra
- This indicator plots supply & demand zones from price action itself.
- It has multitimeframe function which allows inspecting supplies & demands of higher timeframes as well.
Indicator 2: "Supply, Demand & Equilibrium Zones Interactive" by DGT Script
- This indicator calculates all the trading volume, actual supplying and demanding between traders and plots zones of that areas with an extra volume profile.
- It allows customizing the period of supplies & demands of the specified time period by messing around with numbers.
Trading Strategies
In this section, the speaker explains how to trade using supply & demand concept.
Trading Strategies
- TD Sequential can be used for setup buy signal.
- Divergences can also be checked on MFI.
- Equilibrium zones are where buyers and sellers both have big trading activity in those price areas.
Understanding Common Interest
In this section, the speaker explains what common interest is and how it can be used to display total trading activity.
What is Common Interest?
- Common interest displays the total trading activity both buying and selling over a specified period of time at price levels.
- The orange represents selling activity while the blue represents buying activity.
How to Use Common Interest?
- As we come closer to a demand zone, buying activity increases while selling activity decreases.
- Conversely, as we come close to a supply zone, selling activity increases while buying activity decreases.
Bull and Bear Dominance
In this section, the speaker explains bull and bear dominance around zones and how it affects prices.
Understanding Bull and Bear Dominance
- Bull and bear dominance refers to who is most dominant around those zones.
- At certain levels, bulls are more dominant than bears which causes prices to rise.
Volume Profile by KivancOzbilgic
In this section, the speaker introduces VBCB by KivancOzbilgic as a tool for plotting volume profiles.
Using VBCB by KivancOzbilgic
- VBCB by KivancOzbilgic is a tool for plotting volume profiles.
- It allows you to specify the width of the profile.
- You can choose whether the volume profile should be placed on the left or right side of your chart.