Onky's DikFat Supreme Supply and Demand

Onky's DikFat Supreme Supply and Demand (DFAT S&D)

This indicator identifies and marks potential Demand and Supply zones based on sharp price movements and volume spikes. It is designed to assist traders in recognizing areas where price could potentially reverse or move impulsively, based on the concept of supply and demand.

Key Features:
- Dynamic Demand and Supply Zones: The indicator uses historical price data and sharp price movements to detect areas where demand or supply may be concentrated. The zones are drawn as boxes on the chart for visual reference.
- Volume Spike Detection: The zones are only marked when a volume spike occurs, indicating increased market activity and potentially stronger support or resistance at those levels.
- Adjustable Parameters: Traders can adjust the Zone Size to control the lookback period for detecting supply and demand zones, and can fine-tune the Volume Multiplier to control the sensitivity of volume spikes.
- Alerts: Alerts are available for both Demand and Supply zones when they are detected, allowing traders to be notified when price enters or reacts to these areas.

How Traders Use Supply and Demand Zones:

Supply and Demand Theory suggests that prices often move in response to the balance between the amount of supply (selling pressure) and demand (buying pressure) at specific price levels. When demand exceeds supply, prices tend to rise, and when supply exceeds demand, prices tend to fall.

1. Demand Zones: These are areas where price has previously fallen to a low point and buyers have stepped in, pushing prices higher. Traders may view these zones as potential areas for price to reverse upward again.

2. Supply Zones: These are areas where price has risen to a high point and sellers have stepped in, pushing prices lower. Traders may see these zones as potential areas for price to reverse downward again.

Traders use these zones to identify potential entry points (for buying in demand zones or selling in supply zones) and exit points (if price reaches these zones in the future). The volume spike further validates the strength of these zones, as it indicates heightened market interest at those levels.

This indicator offers a flexible, visual way to identify and act upon these market dynamics. It is neutral and does not guarantee any specific outcomes, but it may assist traders in recognizing important price levels where price action could change.

Disclaimer:
This indicator is provided for informational purposes only. It is not intended to be trading advice or a recommendation to buy or sell any financial instruments. Trading involves risk, and the use of this tool does not guarantee any specific results or profits. Past performance is not indicative of future results. Users are responsible for their own decisions and should seek independent financial advice before making any investment decisions.