Supply & Demand Zones
Marks supply and demand zones at indecision candles followed by a strong candle and keeps each zone until price has traded through its whole range.
What you see
Boxes labelled "Demand Zone" (Demand Color) and "Supply Zone" (Supply Color). Each box covers the high-to-low range of one indecision candle and starts at that candle. While the zone is open it extends to the right edge of the chart; once price has worked through the whole zone, the box ends at that candle and the label adds "(mitigated)".
How it works
A zone needs three things:
- an indecision candle: a small body compared with its high-low range (at most Max body/range for indecision),
- directly followed by a strong candle: a large body compared with its range (at least Min body/range for strong). A strong bullish candle creates a demand zone, a strong bearish candle a supply zone,
- calm price action before it: no fair value gap was completed on the Efficient Range Window candles before the indecision candle. A gap counts on the candle that completes it, in either direction and of any size – the settings of the ICT FVG indicator don't apply. A window of 0 turns this check off.
A zone counts as mitigated once the candles that entered it have, together, covered its full range – a single touch is not enough.
How to read it
Demand zones mark where buyers took over after a pause, supply zones where sellers did. Open zones are the ones still in play: when price returns to them, traders watch for a reaction in the direction of the original move. Mitigated zones are shown for reference only.
Stricter ratios – a smaller indecision value and a larger strong value – give fewer, cleaner zones. A longer Efficient Range Window only accepts zones that form after quiet, balanced trading.
Using it in strategies
Supply & Demand Zones is a visual tool: it has no outputs for the Trade Setup or for use indicator in WickScript.
Settings
Open the settings with the slider icon next to the indicator (Indicators, F3). Numeric settings can be swept as Step 1 / Step 2 parameters when you run a strategy.
Inputs
| Setting | Type | Default | Description |
|---|---|---|---|
| Efficient Range Window | Number | 3 | Number of candles before the indecision candle on which no fair value gap (any size, either direction) may have been completed; 0 turns the check off. (min 2) |
| Max body/range for indecision | Number | 0.3 | Largest body-to-range ratio that still counts as an indecision candle (0.3 = body at most 30 % of the candle's range). (min 0.1) |
| Min body/range for strong | Number | 0.7 | Smallest body-to-range ratio of the strong candle that follows (0.7 = body at least 70 % of its range). (min 0.5) |
Styles
| Setting | Type | Default | Description |
|---|---|---|---|
| Supply Color | Color | #ff9c2b80 | |
| Demand Color | Color | #42d99d80 |
Outputs
This indicator draws on the chart only – it has no values for Trade Setup gates or use indicator.