Supply Demand Profiles [LuxAlgo]

Sep 14, 2023

The Supply Demand Profiles is a charting tool that measures the traded volume at all price levels on the market over a specified time period and highlights the relationship between the price of a given asset and the willingness of traders to either buy or sell it, in other words, highlights key concepts as significant supply & demand zones, the distribution of the traded volume, and market sentiment at specific price levels within a specified time period, allowing traders to reveal dominant and/or significant price levels and to analyze the trading activity of a particular user-selected range.

In other words, this tool highlights key concepts as significant supply & demand zones, the distribution of the traded volume, and market sentiment at specific price levels within a specified time period, allowing traders to reveal dominant and/or significant price levels and to analyze the trading activity of a particular user-selected range.

Besides having the tool as a combo tool, the uniqueness of this version of the tool compared to its early versions is its ability to benefit from different volume data sources and its ability to use a variety of different polarity methods, where polarity is a measure used to divide the total volume into either up volume (trades that moved the price up) or down volume (trades that moved the price down).

🔶 USAGE



Supply & demand zones are presented as horizontal zones across the selected range, hence adding the ability to visualize the price interaction with them



By default, the right side of the profile is the volume profile which highlights the distribution of the traded activity at different price levels, emphasizing the value area, the range of price levels in which the specified percentage of all volume was traded during the time period, and levels of significance, such as developing point of control line, value area high/low lines, and profile high/low labels



The left side of the profile is the sentiment profile which highlights the market sentiment at specific price levels



🔶 DETAILS

🔹 Volume data sources

The users have the option to select volume data sources as either 'volume' (regular volume) or 'volume delta', where volume represents all the recorded trades that occur at a given bar and volume delta is the difference between the buying and the selling volume, that is, the net demand at a given bar

🔹 Polarity methods

The users are able to choose the methods of how the tool to take into consideration the polarity of the bar (the direction of a bar, green (bullish) or red (bearish) bar) among a variety of different options, such as 'bar polarity', 'bar buying/selling pressure', 'intrabar (chart bars at a lower timeframe than the chart's) polarity', 'intrabar buying/selling pressure', and 'heikin ashi bar polarity'.

Finally, the interactive mode of the tool is activated, as such users can easily modify the intervals of their interest just by selecting the indicator and moving the points on the chart

🔶 SETTINGS

The script takes into account user-defined parameters and plots the profiles and zones

🔹 Calculation Settings

• Volume Data Source and Polarity: This option is to set the desired volume data source and polarity method
  
• Lower Timeframe Precision: This option is applicable in case any of the 'Intrabar (LTF)' options are selected, please check the tooltip for further details
  
• Value Area Volume %: Specifies the percentage for the value area calculation
  

🔹 Presentation Settings

• Supply & Demand Zones: Toggles the visibility of the supply & demand zones
  
• Volume Profile: Toggles the visibility of the volume profile
  
• Sentiment Profile: Toggles the visibility of the sentiment profile
  

🔹 Presentation, Others

• Value Area High (VAH): Toggles the visibility of the VAH line and color customization option
  
• Point of Control (POC): Toggles the visibility of the developing POC line and color customization option
  
• Value Area Low (VAL): Toggles the visibility of the VAL line and color customization option
  

🔹 Supply & Demand, Others

• Supply & Demand Threshold %: This option is used to set the threshold value to determine supply & demand zones
  
• Supply/Demand Zones: Color customization option
  

🔹 Volume Profile, Others

• Profile, Up/Down Volume: Color customization option
  
• Value Area, Up/Down Volume: Color customization option
  

🔹 Sentiment Profile, Others

• Sentiment, Bullish/Bearish: Color customization option
  
• Value Area, Bullish/Bearish: Color customization option
  

🔹 Others

• Number of Rows: Specify how many rows the profile will have
  
• Placment: Specify where to display the profile
  
• Profile Width %: Alters the width of the rows in the profile, relative to the profile range
  
• Profile Price Levels: Toggles the visibility of the profile price levels
  
• Profile Background, Color: Fills the background of the profile range
  
• Value Area Background, Color: Fills the background of the value area range
  
• Start Calculation/End Calculation: The tool is interactive, where the user may modify the range by selecting the indicator and moving the points on the chart or can set the start/end time using these options
  

🔶 RELATED SCRIPTS

Volume-Profile
Volume-Profile-Maps
Volume-Delta