DD Nifty Zone Marker is a flag to identify the Supply and Demand zones.
I have coded the flag in such a way when there is an imbalance between the buyer and the seller, the flag is triggered.
There are 2 type of candle.
Equilibrium Candle (E-Candle): They imply that transactions are happening in a range thus Buyer and Seller are in balance Candle with Body Range <= 50% of Candle Range
Im-Balance Candle (IB-Candle): They imply imbalance between Buyer and Seller thus price starts moving either up or down Candle with Body Range > 50% of Candle Range
Demand Zone Formation (DZ): Condition 1: 1. Reversal Pattern – RED IB Candle - > BLUE E Candle - > GREEN IB Candle 2. Continuous Pattern – GREEN IB Candle - > BLUE E Candle - > GREEN IB Candle Condition 2: The two candles immediately following the IB Candle must each make a new High. They do not have to make a Higher close, just Higher high. It can be an E Candle or IB Candle
Supply Zone Formation (SZ): Condition 1: 1. Reversal Pattern – GREEN IB Candle - > BLUE E Candle - > RED IB Candle 2. Continuous Pattern – RED IB Candle - > BLUE E Candle - > RED IB Candle Condition 2: The two candles immediately following the IB Candle must each make a new Low. They do not have to make a lower close, just lower lows. It can be an E Candle or IB Candle.
Flag Name:
DZ - Demand Zone SZ - Supply Zone
Suggested time frame:
Scalping trading - 1 Min or 3 Min Intraday trading - 5 Min or 15 Min Swing Trading - 1 Hr or 4 Hr Positional Trading - 1 Day
Buy Opportunity:
Entry - When there is a formation of DZ flag in an up trend of the underlying. Stop loss should be the low of the BLUE candle.
Sell Opportunity:
Entry - When there is a formation of SZ flag in a down trend of the underlying. Stop loss should be the high of the BLUE candle.
High POP Setup:
One can take trades based on the flag when there is a correlation with Pivot , Camarilla , higher period MA.