Smart Money Demand and Supply Zones Indicator
The Smart Money Demand and Supply Zones indicator is a powerful tool that helps you identify potential turning points in the stock market by spotting the zones where large institutional investors and professional traders (the Smart Money) form their positions.
Smart Money Demand & Supply Zones – RBR RBD DBD DBR by Afnan
How does it work?
The “Smart Money” concept refers to large institutional investors and professional traders who possess significant financial resources and expertise. The importance of smart money lies in their influence on market trends and price movements. Their actions and positions often serve as signals for retail traders and investors to make informed decisions.
Formation of Smart Money: Smart money is attracted to areas in the market where they can find favourable risk-to-reward opportunities.
1. Rally Base Rally (RBR) Zones: These zones occur after a rally (upward price movement), followed by a period of consolidation (base formation), and then another rally. Smart money often forms positions here as it suggests a strong uptrend continuation.
2. Rally Base Drop (RBD) Zones: In this case, there is a rally, followed by a base formation, but instead of another rally, the price drops. Smart money may position themselves here in anticipation of a potential trend reversal.
3. Drop Base Rally (DBR) Zones: These zones form when there is a drop in price, followed by a base formation, and then a rally. Smart money may take positions here, expecting a trend reversal to the upside.
4. Drop Base Drop (DBD) Zones: In this scenario, the price drops, then forms a base, but subsequently continues to drop. Smart money might take bearish positions here, anticipating further downward movement.
What are the benefits
The Smart Money Demand and Supply Zones indicator offers you several advantages, such as:
- It helps you spot high-probability trading opportunities in any market and timeframe.
- It allows you to trade with institution / smart money.
- It enables you to implement proper risk management.
- It saves you time and effort by doing the analysis for you and showing you the zones where the Smart Money is active.
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1. Visit the TradingView website at www.tradingview.com and sign in to your account.
2. Open any chart.
3. Locate the indicator icon at the top of the TradingView chart.
4. Click on the icon to open a new window. In this window, select “Invite-Only Script” and choose the Demand & Supply Zone Indicator.
Who is the creator?
The man behind this indicator is Afnan Tajuddin, a full-time trader who has been in the market since 2012. He has completed various courses on different topics from several experts, but he has learned the demand and supply zone concept specifically from two renowned institutes of India, Get-together Finance (GTF) and Trade Legend, who are masters of this concept. He has won the Zerodha 60 Days Profitable Days Challenge eight times. He is an active contributor on TradingView, where he has written educational content on various topics and many of his posts have been selected by TradingView for their editorial pick. Some of his work has also been posted on Twitter by TradingView’s official handle. He has mastered the concept of demand and supply zones and developed this indicator to help other traders benefit from his knowledge and experience.
The power of volume and how to read it!
— TradingView (@tradingview) July 10, 2023
Written by AfnanTAjuddinhttps://t.co/DowJPL4AhY
10 Key Features of the Indicator
This indicator includes the following features:
- Customizable Zone Length: Adjust the number of base candles in a zone to suit your preferences and strategy.
- Candle Body Size Customization: Personalize the body size of candles for fine-tuning visual representation.
- Base Candle Selection: Choose between the body of the candle or narrow range candles as the base candle for zone plotting.
- Colour Customization: Customize Drop, Base, Rally, and Zone colours to match your visual preferences.
- Zone Strength Customization: Adjust candle sensitivity for better control.
- Tested Zone Display: Gain insights into historical zone performance by displaying or disabling tested zones.
- Moving Averages: Utilize four (4) customizable Moving Averages to enhance analysis from any time frame.
- Swing High and Swing Low: Enable or disable support and demand lines based on Swing High and Swing Low.
- Wick of Candle: Customize zone plotting using the body or wicks of candles for flexible analysis.
- Previous Zones: You can choose to display or disable previous zones on the chart that have been deleted and utilized before. This option helps you maintain a clutter-free chart while retaining valuable historical information.
Why Choose Us
An investment that takes you to great heights
Our indicator does the analysis for you and shows you the zones where the Smart Money is active. You don’t have to draw lines and rectangles on your charts manually.
Our indicator helps you align your trades with the market movers and follow their footsteps.
Our indicator tracks the Price Action to generate a signal. In comparison, conventional indicators will generate a signal whenever it meets a specific mathematical condition, without regard for whether demand is greater or supply is greater. This can lead to poor risk management and increasing odds of loss. Moreover, conventional indicators are lagging, meaning they give signals after the price has already moved, whereas our indicator is leading, meaning it gives signals before the price moves.
Testimonials
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