Supply and Demand Zone Confirmation

Hello traders and investors,

Today, I am going to share an indicator that I made by mixing RSI and CCI in different timeframe. You can use this indicator in various ways, however the best possible way I would recommend you to use it is to combine it with price action. I would suggest to play with, so you can decide if it works the best for you.

The whole purpose of making this indicator was to eliminate confusion around different indicators for overbought and oversold and many other headaches. You use price action and you are looking for confirmation to see there is a PRZ? here is your indicator. I found there are certain patterns with CCI and RSI in higher timeframe which helps to find the PRZ and I made this indicator with it.

You can choose to use this indicator in different timeframe. But you have to consider, the lower timeframe you'll go, you will get more signals but the effectiveness goes down with it. Also, if you are willing to change the time frame, You have to change some settings as well which I'll get into it in a moment.

The default settings are for 30min timeframe with these settings.


In case you would like to go to 15min time frame, here is the suggested changes in the setting.


I would suggest to play with different timeframe to find the suitable setting for the pairs you would like to trade. The main goal is you have to choose first CCI one timeframe higher ( if you are in 5min chart, first CCI should be at least 15 or 30min) and the second CCI one timeframe higher than first CCI (if you choose 15min for first CCI, go with 1hr for second CCI). And lastly, RSI can be variable but it is suggested to be at least as low as first CCI timeframe.

Lastly, you have to consider nothing in this script is a financial advice, it is only to help you improve your trading style by making other indicators as simple as possible.
Release Notes:
Hi guys,

In this version I give more room for changing the details of CCI and RSI in case if you would like to change any detail.

You have to consider this buy and sell are not signals and only confirmation, treat it as an indicator.

In CCI setting you can choose the CCI length and source (same as basic CCI) and the upper and lower CCI Band which if the CCI in first timeframe above or below it, it passes the first condition. The next Upper up and Lower Low band are for the highest timeframe CCI which I choose -150 and 150 for more accurate but you can change it now.

Same as last indicator, you can change the first and second CCI timeframe which I always suggest to go higher timeframe than the one you are trading. For instance, if you are trading in 5min timeframe chart, choose first timeframe as 15 and the second as 1hr chart.

Then the next two parts are for RSI and its MA setting and timeframe. I am using RSI moving average for giving the signals, so it is important to play with it as well.

The last part is overbought and oversold which it is useful to see if the moving average of RSI in the current timeframe is either above or below the lines to help us give the signals.

If there is any confusion, write down in the comment section or contact me through social media.

Happy trading.
Release Notes:
Some Basic changes for coders to understand the first and second CCI

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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