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Shved Supply & Demand Indicator

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In the dynamic Forex market, the interplay between buyers and sellers dictates price movements. However, the default MT4 terminal lacks an indicator highlighting zones of significant changes in the buyer-seller ratio. To address this gap, the Shved Supply & Demand indicator is introduced. This free tool automatically identifies and draws key supply and demand levels, providing valuable insights for traders.

Contents:

  1. Description of Shved Supply & Demand Indicator
  2. Types of Zones Highlighted
  3. Examples of Indicator Usage

1. Description of Shved Supply & Demand Indicator:

Shved Supply & Demand Indicator

Supply and demand zones represent levels where heightened market activity has been observed. These zones offer valuable insights as repeated price interactions indicate potential entry points for trades. The indicator draws levels based on supply and demand zones that have previously led to substantial targeted movements. The height of these zones reflects the intensity of price activity around them. The Shved Supply & Demand indicator categorizes zones into different types and provides concise text descriptions for clarity.

For optimal results, like many Forex indicators, Shved Supply & Demand yields more accurate signals on higher timeframes due to reduced market noise. Traders should also consider that zones tested more frequently hold greater significance.

2. Types of Zones Highlighted:

Shved Supply & Demand Indicator

The Shved Supply & Demand indicator identifies and classifies five types of levels:

  • Weak Zone: Indicates areas with no significant excess demand or supply. Caution is advised when trading around these zones.
  • Untested Zone: Represents zones not yet tested, where the price has previously exhibited a strong targeted move.
  • Verified Zone: Denotes tested levels with multiple instances of renewed trading interest. The number of retests influences the strength of the zone.
  • Proven Zone: Signifies repeatedly tested patterns, where trading activity typically resumes, even leading to trend changes upon level breakout.
  • Turncoat Zone: Refers to mirror levels initially acting as resistance/support but later being broken out for trading in the opposite direction.

3. Examples of Indicator Usage:

Shved Supply & Demand Indicator

Trading During a Trend Change:

In a scenario where a downtrend transforms into an uptrend:

  1. Initial rally wave creates an untested zone.
  2. Second upward momentum results in a verified zone.
  3. A third rally wave solidifies the proven status.
  4. Subsequent approach of the price to the zone leads to new bullish movement.
  5. Placement of a pending Stop Loss order.

Trading With the Main Trend:

In the context of a downtrend with retracement rally waves:

  1. Upward movement serves as a retracement.
  2. First sell-off wave below the last low indicates seller strength.
  3. Second sell-off wave starting from the level signals entry points for selling.
  4. Placement of a pending Stop Loss order at the level.

While the Shved Supply & Demand Indicator highlights zones of interest, combining it with additional indicators or utilizing it alongside indicator-free trading systems enhances the probability of successful trades in the Forex market.

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