/// Indicator

Supply/Demand
Zones.

Automatically identifies high-probability Supply and Demand zones using advanced volume calculations and price action pattern recognition.

Supply Demand Support Resistance Volume Price Action

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TradingView v1.0.0 Updated 2026-02-20

Support zone for trend continuation - AAPL, 1D

/// Introduction

Overview

The Problem

Drawing support and resistance lines manually is subjective and often ignores where the actual trading volume occurred. Traditional pivot points don't account for market structure or volume confirmation, leading to false breakouts.

The Solution

Supply/Demand Zones automates the discovery of key institutional levels using advanced multi-factor analysis. It dynamically anchors to relevant timeframes and projects historical zones that are still relevant.

Who It's For

Price action traders, and anyone looking for objective, data-driven support and resistance zones.

/// Features

Key Features

Dynamic Volume Calculation: Uses volume data to determine where the most meaningful trading activity occurred.

Pattern Recognition: Detects specific price action setups to validate zone creation.

Volume Filtering: Ensures that identified zones are backed by significant volume, filtering out weak levels.

Historical Zone Extension: Optionally extend up to 9 previous supply/demand levels to see how historical zones interact with current price.

Auto-Anchoring: Automatically adjusts the calculation period based on your current chart timeframe.

/// Concepts

How It Works

Volume Analysis

The indicator uses volume data to identify where the most significant trading activity took place.

Pattern Detection

It identifies key turning points in price and validates them using advanced price action criteria to confirm potential reversal zones.

Zone Validation

A zone is only confirmed if it meets internal quality checks and, optionally, the Volume Filter threshold.

/// Playbook

How To Use

Quickstart

Add Supply/Demand Zones to your chart.
Select your preferred Theme (Dark/Light) to match your chart background.
Adjust the 'Filtering' strength to control how many zones are displayed (Aggressive = fewer, higher quality zones).
Enable 'Extend Previous Levels' if you want to see historical zones that price might react to.

Interpretation

Treat the zones as areas of interest, not exact price points. Look for price action confirmation (like a pin bar or engulfing candle) when price enters a zone.
The Midline represents the center of gravity of that zone—a highly magnetic level.
A break and close beyond a zone often signals a continuation in that direction, turning previous supply into demand (or vice versa).

/// Reference

Visual Legend

Element	Meaning	Interpretation	Common Mistake
Channel Fill	The Supply or Demand zone.	Expect price reactions or consolidation within this area.	Placing stop losses tightly inside the zone; place them outside the zone boundaries.
Midline	The center of gravity for the zone.	Price often gravitates towards and reacts strongly to this exact level.	Assuming it's an unbreakable wall.
Extended Dashed Lines	Historical Supply/Demand zones.	Watch for reactions at these levels even if they were formed in the past.	Ignoring current market context when trading off old levels.

/// Configuration

Settings Reference

Main

Extend Previous Levels

Number of historical zones to keep drawn on the chart (0-9). Useful for seeing past support/resistance.

Filtering

Controls how strict the zone detection is. 'Aggressive' results in fewer but higher-conviction zones.

Volume

Use Volume Filter

When enabled, requires the pivot candle to have the highest volume over the lookback period.

Volume Lookback Period

The number of bars to look back when checking for the highest volume.

Style

Theme

Dark/Light: preset colors for dark/light chart backgrounds. Custom: use the color pickers below.

Fill Color

Color of the zone background. Only used when Theme is set to Custom.

Midline Color

Color of the zone's center line. Only used when Theme is set to Custom.

/// Alerts

Alert Types

Channel Changed

Triggered when a new Supply/Demand zone is formed.

Price Entered Channel

Triggered when price enters an active Supply/Demand zone.

Price Broke Above Channel

Triggered when price breaks and closes above the upper boundary of a zone.

Price Broke Below Channel

Triggered when price breaks and closes below the lower boundary of a zone.

Price Crossed Midline Up

Triggered when price crosses above the center line of a zone.

Price Crossed Midline Down

Triggered when price crosses below the center line of a zone.

/// FAQ

Frequently Asked Questions

No. However, the current active zone may adjust as new price and volume data comes in during the present candle.

It works on all timeframes. The indicator automatically adjusts based on your chart's timeframe to ensure relevant zones are calculated.

Try lowering the 'Filtering' strength to 'Permissive' or 'Very Permissive', or disable the 'Use Volume Filter' option. In low volatility or low volume environments, strict settings may filter out all potential zones.

/// Subscriptions