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Supply, Demand and Equilibrium Zones, Interactive by DGT

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Supply, Demand and Equilibrium Zones, Interactive

The law of supply and demand is a theory that explains the interaction between the sellers of an asset and the buyers for that asset. The theory defines the relationship between the price of a given asset and the willingness of traders to either buy or sell it. Generally, as price increases, traders are willing to supply more and demand less and vice versa when the price falls.
Simply said, the higher the price, the lower the quantity demanded, and from the seller's perspective, the higher the price, the higher the quantity supplied

Equilibrium zones are the price levels where both selling and buying trading activity is high, both sellers and buyres are interested at that price levels. More correctly, there is a great deal of activity on both the buy and sell side and the market stays at that price level for a great deal of time. Supply and demand are balanced or in equilibrium

Supply and Demand Shifts may occur when institutional investors step in, a change in both price and quantity demanded from one point to another

This experimental study attempts to presend Supply, Demand and Equilibrium Zones by measuring traded volume at all price levels on the market over a specified time period. Then the result is plotted as horizontal zones on the finacial isntrumnet's chart that highlights supply, demand and equilibrium zones at specific price levels

It is important for supply, demand and equilibrium zones to understand that time is always a dimension on charts. The quantity demanded or supplied, found along the horizontal axis, is always measured in traded volume of the asset over a given time interval. Longer or shorter time intervals can influence the levels of supply, demand and equilibrium zones

The study is made interactive, which requires the users to select two points on the chart, by simply clicking on the chart. In case the user would like to view different range then just dragging the vertical lines will be enough

By increasing/decreasing values for supply and demand zones or equilibrium zones, you will either get the zones enlarged or detect supply and demand shifts or other equilibrium zones

It is adviced to use this study in conjuction with a Volume Profile study, such as Volume-Profile-and-Volume-Indicator, Volume-Profile-Custom-Range, Anchored-Volume-Profile, and Price-Action-Support-Resistance , where volume profiles presents trading activities at specific price levels and Supply and Demand Zones can be treated as Value Area (they are not exact same but similar) for Volume Profiles

Disclaimer: Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely

The script is for informational and educational purposes only. Use of the script does not constitutes professional and/or financial advice. You alone the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd TradingView user liable for any possible claim for damages arising from any decision you make based on use of the script

Versionshinweise
major update

* added volume profile, for further details regarding volume profiles please refer to Volume-Profile-and-Volume-Indicator, Volume-Profile-Custom-Range (with light version of supply & demand), Anchored-Volume-Profile, and Price-Action-Support-Resistance (with light version of supply & demand)
Versionshinweise
major update - added Value Area (VA) option

thanks to everyone who presented their valuable suggestions
Versionshinweise
⯌ Extend Calculation To The Right
Calculation and projection logic have been enhanced to seamlessly extend analytical elements to the most recent bar, automatically incorporating newly formed bars as they appear. This delivers continuous, up-to-date market context and improved real-time visibility of evolving price behavior, ensuring your analysis always remains aligned with the latest market action, without requiring manual refresh or recalculation.
Snapshot

⯌ Pine Script v6 Upgrade
Upgraded to Pine Script v6 to leverage the latest TradingView engine improvements. This results in faster execution, improved stability, and more consistent behavior across all timeframes, especially during live market conditions and extended sessions.


⯌ Script Optimization
Core calculations and rendering logic have been refined to reduce overhead and improve responsiveness.


⯌ Options & Tooltips Review
All settings, option names, and tooltips have been reviewed and refined for clarity and usability. Inputs are now more intuitive, self-explanatory, and context-aware, allowing users to configure the script faster and with greater confidence—no guesswork required.
Versionshinweise
Short title updated to better reflect the interactive nature of the script and maintain visual consistency across the toolset.
Versionshinweise
Calculation & Visual Alignment
Enhanced range-based calculations and synchronized profile rendering to ensure plotted levels accurately reflect underlying volume data within selected anchors.

Haftungsausschluss

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