Flux Charts MTF Supply and Demand Zones (Premium)

2023년 10월 10일

Indicator Overview
The Multi-Timeframe Supply & Demand Zones indicator by Flux Charts displays supply and demand zones on multiple timeframes with two different zone detection methods. These zones are commonly known as areas where there are lots of buyers/sellers present in the market.

Adaptive Detection Method


SPY 5m timeframe, October 8 2023

Indicator Settings: (Timeframe: Chart & 15m, Method: Adaptive, Zone Multiplier: 1)

Many times supply and demand scripts try and precisely define conditions that qualify for supply and demand zones. People, however, when locating supply and demand zones manually generally do not take a quantitative approach, rather looking for qualities in price action that have generalized qualities and trends. The adaptive algorithm uniqueness comes from adapting the human approach to work computationally. It generalizes the qualities of supply and demand zones and locates areas in the chart with an acceptable similarity. Specifically, it looks for consolidated areas within the chart that are preceded by a rise or fall in price. The rise or fall length has to be a certain ratio to the consolidation length. If the criteria are met it will draw the zone, if a zone already exists at that price level it will ignore it or merge them if they are different timeframes. This results in a much more consistent ability to identify areas of supply and demand.

Basic Detection Method


The basic detection method looks for areas where price made drastic movements within a small period of time, which could indicate a high level of buyers/sellers at the spot. Thus, these zones are formed and can be used as areas of trading where money is going in/out of the markets.

Multi-Timeframe (MTF) S&D

Flux Charts supply and demand script utilizes MTF. This allows for displaying zones from different timeframes on one chart. Utilizing higher timeframes is a common practice in trading, and it can be easy to forget about key levels & zones on higher timeframes which could cause reversals/bounces.




Here is an example of a 15 minute supply zone formed on the NASDAQ, and with this indicator, you can also see this same 15 minute supply zone while being on a 5 minute candlestick chart, since you have the 15 minute zones enabled in the settings. This indicator offers supply & demand zones on multiple timeframes including the 5 minute, 15 minute, 30 minute, 1 hour, and 4 hour.

Settings


Method:

• Choose between the Supply & Demand zones detection (Basic / Adaptive)
  

Zone Retests:

• Choose how retests should be considered. You can choose between a high/low candle wick entering a zone, or a candle closing inside of a zone to be considered a valid retest.
  

Zone Invalidation:

• Choose how zones are invalidated. You can choose between a high/low candle wick exiting a zone, or a candle closing outside of a zone to be considered a zone invalidation.
  

Zone multiplier:

• Adjust zone size (1 is recommended)
  

Timeframe:

• Choose the timeframes you would like Supply & Demand zones to be displayed from.
  

Zone Appearance:

• Adjust the colors of Supply/Demand zones
  
• Enable/Disable the center dashed line in zones
  

Display Labels:

• Choose to toggle on/off retest & break labels
  

Notifications:

• Choose what alerts you would like to receive. You can choose to have new zone formations, zone breaks, and zone retests.
  

2023년 10월 19일

릴리즈 노트

Updated timeframe settings to increase script speed.

2024년 2월 5일

릴리즈 노트

Zones out of range are no longer deleted but hidden until price is within range again.

2024년 2월 8일

릴리즈 노트

Added Zone Visibility Range setting to allow users to adjust the distance from price where zones become hidden.

2024년 2월 25일

릴리즈 노트

• Added more information to tooltips
  
• Added relative to price label spacing
  

2024년 3월 5일

릴리즈 노트

• Added historical zone toggle setting which allows users to hide old zones which have been invalidated.
  
• Added support for referencing zones of any length in history.
  

2024년 3월 18일

릴리즈 노트

Added option to change the reference size for historical bars.

2024년 5월 11일

릴리즈 노트

• Added zone size filtering option.
  
• General updates to detection algorithm.
  

2024년 7월 25일

릴리즈 노트

Added support for charts with no volume information.

2024년 8월 7일

릴리즈 노트

Removed Basic Detection method.

2024년 11월 16일

릴리즈 노트

Zone Detection Algorithm Update

• Algorithm now can run on 20,000 bars
  
• Algorithms detection accuracy significantly improved, fixing issues with highly volatile charts
  

2024년 11월 18일

릴리즈 노트

Retest are now triggered if price is within the zone then on the next bar price closes outside the zone.

2024년 12월 14일

릴리즈 노트

• NEW "Detection Method" setting now lets you choose between Momentum and Regression for supply and demand zone detection. Regression mirrors the previous version, while Momentum uses momentum candles to identify zones.
  
• NEW "Sensitivity" setting allows you to adjust detection sensitivity, with lower settings identifying fewer but stronger zones.
  
• Added "Minimum Zone Width" and "Minimum Zone Length" settings to define the minimum size and number of candles required for a zone.
  
• Optimized script for faster and smoother performance across multiple timeframes.
  

2024년 12월 16일

릴리즈 노트

• Fixed an issue where zone sizes were incorrectly linked to the maximum zone width setting
  

2024년 12월 20일

릴리즈 노트

• Revised Regression Detection Method logic
  

4월 17일

릴리즈 노트

Renamed to Flux Charts® - MTF Supply & Demand Zones

5월 19일

릴리즈 노트

• Improved S&D zone detection for zones close to each other.
  
• Retest cooldowns are now tracked individually per zone.
  
• Adjusted retest label positions for a cleaner view.