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That looks more like a support and resistance indicator. You should try to add a volume component to that indicator in order to make it a supply and demand zone indicator. For example, the indicator could determine if the volume in the bar forming the zone has x times the avg volume of the y previous bars and draw the zone only if the volume cindition is met.
Yes, that's the spirit of the community.
I only wanted to point that said indicator is not a supply and demand indicator, even if the name says so. It is a support and resistance indicator.
Support and Resistance
Support and resistance levels are specific price points where a security tends to reverse direction. Support is the level where a price tends to find a floor as buying interest is strong enough to prevent further decline. Resistance is the level where selling pressure is enough to prevent further price increases. These levels are often identified through historical price data, where prices have repeatedly reversed, indicating psychological barriers for market participants.
Supply and Demand
Supply and demand zones, on the other hand, are areas on a price chart where significant buy or sell orders are likely placed, causing price reversals due to market imbalances. A demand zone is a price area where buying interest is strong enough to push prices up, while a supply zone is an area where selling interest is sufficient to drive prices down. These zones are identified by areas of rapid price movement and volume spikes, reflecting significant institutional trading activity.
Hint: Search the ninjatrader respository and use Ai to explain the code of any indicator. There is a supply and demand indicator by the ninjatrader staff that is very advanced and hits the mark.
Chaos at one level of magnification is harmony at a higher level of magnification.
