The Shved Supply and Demand is an MT4 indicator that determines key buy-sell zones based on projected supply and demand zones.
The fluctuating ratio of buyers to sellers drives all price changes in the currency market. For this reason, it’s essential to analyze and outline potential price levels where the market may encounter excessive supply or demand. Such information will help you assess the best possible trading setups.
This guide will explain how to trade using the Shved Supply and Demand indicator in the MetaTrader4 platform.
What is the Shved Supply and Demand Indicator?
The Shved Supply and Demand indicator closely monitors past price swing levels and identifies key event areas on the chart. These levels work as strong support and resistance zones. If you can relate price-action signals to the right S/R level, you may see a significant change in your winning ratio.
At price levels in which a previous market rally (strong upward rise) started, demand zones (typically associated with support) form. According to the supply/demand hypothesis, there must have been a significant number of open buy orders at the price level when the rally began. As a result, there is a greater probability that the price will rebound from the demand area and initiate a bullish trend move.
Supply zones (resistance) highlight the levels where the price was previously denied while attempting a bullish move. A large number of pending sell orders in a specific price level causes such bearish trend reversals. If the price moves back into the supply zone, it is more likely to be rejected and forced to rejoin the downside rally.
The Shved Supply and Demand indicator also helps you identify key price breakouts. For instance, the price aggressively exceeding a supply zone may indicate a strong bullish breakout. However, it would be best if you were concerned about false breaks, which may result in buy/sell traps.
Shved Supply and Demand Trading Strategy
- The price retests a verified support zone and rebounds for a bullish move.
- Enter long once the chart prints a solid bullish candlestick pattern above the respective support area.
- Stop loss below the support zone.
- The price retests a verified resistance zone and swings for a bearish move.
- Enter short once the price plots a solid bearish candlestick pattern below the respective resistance area.
- Stop loss above the resistance zone.
Shved Supply and Demand Indicator Pros & Cons
- Shows predefined levels of solid supplies and demands.
- Outlines weak, untested, verified, proven, and turncoat support/resistance zones.
- Enhances your credibility in price-level analysis.
- Suits multi-timeframe charts.
- Applicable to all types of trading strategies.
- Doesn’t indicate price trends, momentums, or market sentiment.
- It may require additional indicators for buy-sell confirmations.
Like most Forex market indicators, Shved Supply and Demand provides more reliable indications over longer time frames. This is because low periods include a good bit of market noise. According to our review, the Shved Supply and Demand zones work best on 4-hour to daily timeframe charts. Besides, you may build authentic trading strategies by combining its support/resistance zones with moving averages and momentum oscillators.
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