Detecting Multi-Timeframe Supply and Demand Zones from Pivot Clusters
Summary
The document describes a chart indicator that identifies supply and demand areas by clustering pivot highs and lows across multiple timeframes. Users can set a minimum number of price reactions for a zone, merge nearby pivots, limit the history scanned, and choose which zones to display. Higher-timeframe zones receive distinct visual treatment, while zones are marked broken after price closes through them.
The indicator can alert traders when price approaches or enters a zone and displays the nearest supply and demand areas with their timeframe, touch count, and distance. These features could support price-action monitoring, but the document is product information rather than a tested trading study. It provides no evidence that repeated touches predict future reversals, and parameters such as zone width, lookback, and alert distance require independent evaluation for the market and timeframe being traded.
Key ideas
- Supply zones are formed from clustered pivot highs, while demand zones use clustered pivot lows.
- A configurable touch threshold filters zones with fewer observed reactions.
- The indicator scans selected timeframes and distinguishes higher-timeframe zones visually.
- A zone is marked broken when price closes through it, and proximity alerts can notify the trader.
- The document gives no performance evidence that these zones predict profitable reversals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.