What kind of zones does the Shved Supply & Demand plot?
This indicator highlights a total of 5 types of the levels:
- Weak zone – weak zone. There is no excess demand or supply close to these values. Accordingly, you should either avoid trading around them or do it carefully.
- Untested zone – not yet tested zone. They include those supply and demand zones, from which the price has once made a strong and targeted move.
- Verified zone – already tested (verified) level. These are the values where new interest in trading has been sparked 2 or more times. The indicator displays the number of retesting such formations on the chart. The higher the number of retests, the stronger the zone.
- Proven zone – repeatedly tested (proven) pattern. As a rule, trading activity almost always resumes from these values even to the point when a level is broken out and the trend changes.
- Turncoat zone – so-called “mirror” levels. Initially, such zones act as resistance/support. However, due to changes in supply and demand, the levels are broken out and used to trade in the opposite direction.
Although the indicator highlights areas that are of interest to Forex market participants, the indicator’s signals can be more effective when using additional trading tools.
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