This page is dedicated to providing a thorough walk-through of our Professional Zones – Institutional Supply and Demand Imbalances indicator. The settings functionality, customizability, and purpose will be discussed to give you an in-depth understanding of the indicator. Understanding the purpose of the different functions and settings is crucial to utilizing this powerful tool at its full potential.
First Look Upon Purchase
After purchasing the indicator, your chart may initially appear cluttered, zoomed out, and hard to read. But do not worry, it just means the indicator settings must be fine-tuned to optimize your experience. Here is an example of what your chart may look like upon initial access:
As discussed above, it may appear overwhelming. However this page will discuss each major customizable setting and the functionality behind it to streamline your TradingView set up.
Filter Options Settings Category
This is the first customizable feature that appears when accessing the settings of the indicator. What Filter Zone Ranges does is allow you to filter the range at which zones appear both above and below the current asset price. With this setting unchecked, every single demand and supply zone within the 5k candle limit (or 20k limit if you have a premium TradingView account) will appear on your chart. This causes chart clutter which limits the visibility of price action.
If you have this setting activated, you can choose exactly the range of zones visible to you. This range is percent based and is measured both above and below the current market price. For example, if you activate Filter Zone Ranges and set the Filter Percentage at 7%, only zones within the range of 7% above, and 7% below the current asset price will be shown. This is how it will impact your chart:
Demand/Supply Zone Options Settings Category
The next two categories contain the majority of the customizability for supply and demand zones. The first option in both the Demand/Supply Zone Options is Create Demand/Supply Zones. This toggle is very straight forward, you may choose whether or not to display all demand zones, or all supply zones.
The next two options are Demand/Supply Zone Border and Demand/Supply Zone Fill. Again, these are straight forward. The border setting allows you to edit both the color and opacity of the zones’ border lines. The fill setting allows you to edit the color and opacity of the interior of the supply/demand boxes.
Following the first pair of visual settings, you will see Demand/Supply Zone Box Offset. This allows you to toggle how much the indicator offsets each zone from its origin point. In other words, move it to the left or right from the point in time at which the zone was created. The 0 offset is the base setting which is actually a slight offset to the right of the origin point to ensure that the candlesticks remain unobstructed visually. Below are the visual differences this setting creates when inputting an offset value.
After the offset options, you will find Demand/Supply Zone ERC Multiple. This is a key setting which inputs the value our formula utilizes to scan the areas of institutional supply and demand imbalances. Unless you are extremely experienced with supply and demand analysis or you are running backtesting, it is highly recommended this value is left at ‘2’ for both the demand and supply options.
The next two options you will see in your indicator settings are Extend Demand/Supply Zone and Demand/Supply Zone Size. This feature allows you to customize exactly how far your zones will extend from the point of origin into the future.
The three options on the drop down menu are Extend, Fixed, and Dynamic. Each of these options extend your zones in a different fashion. It is important to note that the value inputted in the size option is the amount of units the zones will extend to the right for both Fixed and Dynamic options.
The larger this input is, the further out the zones will extend into the future, and vice versa. Below are examples visualizing the effect of each type of extension on the zones (demand in the images below), paired with a standard size of 100.
The final setting in the Demand/Supply Zone Options category is Broken Zones to Keep and Broken Demand/Supply Zone Fill. The Broken Zones to Keep input allows you to see recent supply or demand zones that have been broken and deleted from your chart. This may be useful for a trader in a few different ways.
The Broken Demand/Supply Zone Fill setting allows you to customize the number of broken zones displayed as well as their color and opacity. The most prominent example of this option’s utility is for traders that do not observe price action during the entirety of the market open.
If an individual left their charts for a few hours and missed a demand break, it may give the illusion that there was never a demand there and price action has been in “no-man’s land” all day. However if that individual inputted ‘1’ in the Broken Zones to Keep setting, they would be able to see that a demand has broken. This may be useful as the trader may have an altered sentiment after knowing that a zone did in fact break. Below are two images, the first one with the value ‘0’ inputted, and the second one with the value ‘1’ inputted into the Broken Zones to Keep (for supply) setting.
Note: the value inputted is the amount of previously broken zones that will appear on your chart. For example, if the value ‘3’ is inputted, the three most recently broken zones will appear on your chart.
Timeframe Options Settings Category
Time Frame Options Settings allows you to toggle which supply and demand zones appear on your chart by time frame. For example, if you are analyzing a chart on a larger time frame such as the daily or weekly, the small 30 minute and 45 minute zones will often clutter your chart. By deselecting the weaker and smaller time frame zones, it will clean your chart up, allowing you to only see the zones that assist your analysis.
However the first two options in the category are unique.The first is Show Forming Zones. This option is extremely useful if you are watching price action play out live, when seeing the possibility of a supply or demand zone forming may be of benefit during your day trading. By toggling this setting ON, you will see all possible supply and demand zones forming in real time. However, this could cause clutter if multiple zones are forming at once in which case, toggling it off may be more beneficial. Below are two charts, one with Show Forming Zones toggled off, and one with it toggled on.
The second option in the Timeframe Options category is the Show Zones Inside toggle, which controls the table at the top right of your screen (you may get rid of this table by deselecting tables in display settings).
This setting simply is a “yes” or “no” as to whether or not the table located at the top right of your screen will display the number of zones price action is currently sitting in. This setting is useful as zones may sometimes pile up on top of one another, making it hard to know exactly how many zones price action is currently sitting in.
Below is an image of a chart with the setting toggled on. Notice it shows that current price action is sitting in 3 Demand Zones and 0 Supply Zones.
Gap Options Settings Category
You can see that a gap was formed due to a strong move to the upside, and the indicator highlights this gap with a gray box. Gaps are important to many traders as there is often a large lack of liquidity inside the gap area, which often acts as a magnet that attracts future price action to fill it. If toggled on, the indicator displays the gap among the supply and demand zones seamlessly. The rest of the settings for this category are options to customize the color, opacity, size, and offset. These have the same effect as the options in the Demand/Supply Zone Options category.
Text Options Settings Category
The final category in the indicator input settings is Text Options. This category allows you to toggle zone labeling on or off, and to specify how you would like the zone labels to appear. It’s strongly recommended that zone labeling is left ON because knowing the time frame a supply or demand zone originated from is a massive indicator of its strength. Top right alignment causes labeling such as “3H” to appear at the top right of each zone.
Indicator Data Limitations
There are a few limitations of TradingView which impact the Professional Zones – Institutional Supply and Demand Imbalances indicator.
The first is the data TradingView provides to its users. With a basic TradingView account, a user only has access to 5,000 candles of data. So if a user is on the 1 minute time frame, that user can only see 5,000 candles before that current point. This is important because our advanced indicator scans historical price action that has formed supply and demand zones and displays it on your chart. This means that if a user is on a 1 minute time frame chart, they will only be able to see zones formed within the last 5,000 candles. Older supply and demand zones can not be displayed.
However if a user has the Premium TradingView subscription, they can access up to 20,000 candles, which greatly increases the potential zones the user may see on the smaller time frames. Here is a chart on the 1 minute time frame with a Premium Subscription:
As you can see, many viable zones are still displayed even on the 1 minute. However if we jump to the 5 minute time frame, you will see that an older large supply zone that originated months before current price action is not seen on the small 1 minute time frame due to TradingView’s data limitation.
Below is the same chart, but on the 5 minute time frame to display the difference, as well as a second chart on the 4 hour time frame to display the origin of the large supply zone.
As you can see above, the 1 minute chart failed to display the large supply that formed 2 months before the current price action that is displayed on the chart. As discussed before, there is no work around for this, it’s just a minor TradingView inconvenience.
To counter this, we strongly recommend checking the larger time frames before starting your trading day, as there could be an old zone lurking behind the scenes. Once you spot it on the 30 minute time frame, for example, you may easily take note of the demand zone and its location.
A Few More Tips
There are a few more tips you should know when analyzing and trading supply and demand with our Professional Zones – Institutional Demand and Supply Imbalances indicator. First, make sure extended trading hours are turned OFF when trading/analyzing regular stocks. This is because many irrelevant and fake candles form during the extended hours due to low volume which may severely mess up your zones. Second, make sure electronic trading hours are turned ON for futures supply and demand analysis, which leads into the third tip. Third, it’s recommended that most of your index analysis is done on the futures chart. For example, instead of looking at SPY for a majority of your supply and demand analysis, look at ES1!. This is because the major United States indices are traded by other institutions in other countries while SPY and QQQ are closed. This means that major institutional supply and demand zones are forming overnight which means you may miss these zones if you aren’t watching the futures chart as well! These few tips should completely enhance your supply and demand trading experience.
The Bottom Line
This indicator has been intricately and powerfully designed to not only display institutional supply and demand imbalances more accurately and efficiently than any other TradingView indicator, but it has also been designed to give the user full control. Full control means the user has the ability to customize the appearance and inputs, as well as toggle specific objects visible to the trader.
We have meticulously designed the Professional Zones – Institutional Supply and Demand Imbalances indicator to be extremely valuable as a stand-alone strategy, as well as versatile enough to incorporate multiple other trading strategies on top of supply and demand.”
However, in order for this indicator to be utilized by you at its full potential, it is important that you understand all of its features, capabilities and configuration options before you dive into trading.