Strong Supply and Demand Reversal Signals

This script will help to identify strong reversal signals in Supply and Demand zones using:

Supply and Demand Zones from the weekly chart (1W) 🏷️
RSI to identify conditions where the market is overbought or oversold 📉📈
Volume to confirm that the trading volume is above average 🔊
Price Action using Bullish and Bearish Engulfing candlestick patterns 🔥📊
🔍 How the script works:
Supply and Demand Zones:

Use the previous week's High and Low prices (1W) as Supply and Demand Zones respectively.
Supply Zone is the last High price in the previous week.
Demand Zone is the last Low price in the previous week.
RSI:

Calculate the 14-period RSI.
Overbought: When RSI > 70 (Overbought).
Oversold: When RSI < 30 (Oversold).
Volume:

Calculates 20-period Volume.
High Volume: When the current Volume is 1.5 times higher than the average Volume.
Price Action:

Bearish Engulfing: When the current candlestick is a Bearish candlestick (close < open) and covers the previous Bullish candlestick (close[1] > open[1]).
Bullish Engulfing: When the current candlestick is a Bullish candlestick (close > open) and covers the previous Bearish candlestick (close[1] < open[1]).
Strong Reversal Signals:

Strong Bearish Reversal:
Occurs when price is near or in the Supply Zone (close >= supply_zone * 0.98).
Must have Bearish Engulfing and RSI overbought (RSI > 70) and high Volume.
Strong Bullish Reversal:
Occurs when price Close to or in Demand Zone (close <= demand_zone * 1.02).
Must have Bullish Engulfing and RSI oversold (RSI < 30) and high Volume.
Signal Display:

Red Label (Down) will be displayed when there is Strong Bearish Reversal (at Supply Zone).
Green Label (Up) will be displayed when there is Strong Bullish Reversal (at Demand Zone).
Zone Line Drawing:

Draw Supply Zone line as red dotted line.
Draw Demand Zone line as green dotted line.
These lines will extend from some selected candlesticks to the current candlestick.
🖼️ Display:
Red Label: Appears above the candlestick when there is a Strong Bearish Reversal.
Green Label: Appears below the candlestick when there is a Strong Bullish Reversal.
Supply Zone: Red dotted line showing the Supply Zone.
Demand Zone: Green dotted line showing the Demand Zone.
🧑‍💻 Usage Example:
Trading Strategy:
This script can be used to find reversal points in Supply and Demand Zones.
A combination of Price Action (candlestick patterns), RSI (overbought and oversold conditions), and Volume to confirm important moves.
Signal Confirmation:
This script helps confirm strong reversal signals by combining multiple technical factors to be more reliable.

This indicator works on
#crypto #forex #gold and all assets.