Shved Supply & Demand Indicator for MT5
The Shved Supply & Demand Indicator is designed to automatically detect and plot critical supply and demand zones in the Forex market. These zones highlight areas of heightened buyer or seller activity, enabling traders to identify potentially profitable entry and exit points.
Features of the Shved Supply & Demand Indicator
- Supply and Demand Zones:
- These levels represent areas where significant price movement originated.
- Repeated interaction with these zones can signal high-probability trade opportunities.
- Dynamic Zone Height:
- The height of each zone reflects its level of activity.
- Stronger zones, where price reactions were more frequent and impactful, appear visually larger.
- Short Text Descriptions:
- Each zone on the chart is labeled with a description, making it easy to interpret.
- Best Performance on Higher Timeframes:
- The indicator generates more reliable signals on higher timeframes due to reduced market noise compared to lower timeframes.
Types of Zones Highlighted by the Indicator
The Shved Supply & Demand Indicator categorizes zones into five types:- Weak Zone:
- Low demand or supply activity.
- These zones are less reliable for trading and should be approached cautiously.
- Untested Zone:
- Zones where the price has made a strong, singular move but has not yet been retested.
- These are potential areas for future price reactions.
- Verified Zone:
- Zones that have been tested multiple times, sparking renewed trading activity.
- The number of retests is displayed on the chart, indicating the strength of the zone.
- Proven Zone:
- Highly reliable zones that have been tested repeatedly and often initiate strong price movements.
- These zones can even influence trend changes.
- Turncoat Zone:
- Also known as "mirror" levels, these zones switch roles between support and resistance.
- They are broken and used for trading in the opposite direction when supply and demand dynamics shift.
Trading with the Shved Supply & Demand Indicator
Key Applications
- Trading with the Trend:
- Use verified and proven zones to align trades with the prevailing trend.
- Trend Reversals:
- Monitor turncoat zones for potential trend changes.
- Enhancing Confluence:
- Combine the Shved Supply & Demand Indicator with other tools, such as Price Action strategies or candlestick patterns, to strengthen trade setups.
Best Practices
- Focus on higher timeframes for more reliable signals.
- Prioritize zones that have been tested multiple times (verified or proven zones).
- Use additional indicators or methods to confirm signals and improve trade accuracy.
Benefits of Using the Shved Supply & Demand Indicator
- Automatic Detection:
- Saves time by plotting supply and demand levels directly on the chart.
- Enhanced Decision-Making:
- Identifies critical zones for high-probability trades.
- Adaptability:
- Useful for both trend-following and reversal trading strategies.
- Improved Risk Management:
- Helps traders set precise stop-loss and take-profit levels based on key zones.
Conclusion
The Shved Supply & Demand Indicator is a valuable tool for Forex traders seeking to identify key areas of market activity. By highlighting supply and demand zones and categorizing them by strength and reliability, the indicator simplifies market analysis and helps traders make informed decisions.For best results, use this indicator alongside other tools and techniques, such as Price Action or candlestick patterns, to create a robust trading strategy. Whether you’re trend trading or anticipating reversals, the Shved Supply & Demand Indicator is a powerful addition to your trading arsenal.
