Summary of "I Built an Indicator That Finds Supply & Demand Zones Automatically (Here's What Happened)"
Summary of the Video (Subtitles-Based)
The creator presents a TradingView indicator designed to automatically find supply & demand zones—including how to trade from them—so traders don’t have to spend a long time drawing zones manually. They claim the indicator identifies zones in seconds and supports a consistent ruleset intended to improve trade outcomes.
Key Problem With Manual Zoning (Their Critique)
- Manually drawing zones can take 20–30 minutes.
- It’s “not even right half the time” because it’s unclear which liquidity/supply-demand area to mark.
- Inconsistency is emphasized: drawing different zones at different times means you can’t reliably reproduce results.
- They argue that consistent zone rules are what separates profitable trading from non-profitable trading.
Trading Framework They Use (Multi-Timeframe Workflow)
1) Determine Trend and Range on Higher Timeframes
- For day trading, they prefer 5/10/15-minute charts.
- For swing trading, they say it can apply similarly to 1H / 4H / Daily.
- They describe bullish structure as:
- Higher lows
- Higher highs
- Including a protected low and a high
2) Use the Indicator to Identify POI Zones Between the Range
- The indicator places zones between the low and high boundaries.
- They recommend enabling settings that control setup direction:
- Turn off bearish setups in bullish conditions (to avoid “cooked” entries)
- Use the opposite direction when bearish
3) Six-Tap Model for Zone Quality
- They claim the best zones follow a “six-tap model” (taps labeled 1–6).
- They define zones as “unmitigated”:
- Where 50% has not been traded back into
- (They reference a 50% dashed line.)
- They treat POIs as valid when price shows the expected liquidity interaction:
- Wait for the liquidity sweep (labeled as “number 4”)
- Then aim for rejection around 50% of the zone (or close to it)
4) Confirm on a Lower Timeframe (Avoid Blind Entries)
After identifying the POI on the higher timeframe:
- Drop down to a lower timeframe (often 1-minute).
- Require a shift in structure (confirmation), such as a close above/below a key level.
- Only enter if the confirmation occurs within the printed zone.
- If price breaks through the zone without structural confirmation:
- They don’t take the trade, framing it as avoiding losses from missing confirmation.
Indicator Usage / Configuration Notes
- In TradingView, they enter the indicator via Indicators.
- They mention an “AMN model” and instruct toggling:
- “Bullish only” or “Bearish only” depending on trend
- They recommend a balanced approach:
- On 1–5 minute ranges, more zones appear (more setups) but potentially lower quality.
- They prefer fewer, higher-confidence setups for a higher win rate (they claim a “crazy high” win rate).
Two Real-Trade Examples (What They Demonstrate)
Example 1: Bullish Buy Scenario
- The indicator marks a demand zone between the higher-timeframe low/high.
- They wait for a liquidity sweep, then look for price to reach ~50% of the zone.
- On the lower timeframe, they wait for a structure shift (example: a close above a prior high).
- Then they set:
- Entry at the confirmation location
- Stop loss below the zone low
- Target at the higher-timeframe higher high
- They claim the trade hits take profit.
Example 2: Bearish Short Scenario
- Structure indicates lower highs / lower lows.
- The indicator provides multiple zones, but they ignore the higher zone if it conflicts with the trend.
- They use the same six-tap / 50% POI logic:
- Require a sweep into/near 50%
- Require a lower-timeframe structure shift confirming downside (e.g., a candle close below a key level)
- If the shift doesn’t happen before price breaks through the zone, they won’t trade.
- They place:
- A stop above the zone
- A target down to the expected low
- They claim it also reaches the target.
Purchase / Access Notes
- The indicator costs money.
- Access is provided via a link in the video description.
- After purchase, they ask buyers to send their TradingView username through WhatsApp support chat or Discord, specifically to “the real me” as an anti-scam step.
Main Speakers / Sources
- Primary speaker: The video’s creator/trader (no named guest in the subtitles).
- Sources referenced: TradingView, and the creator’s paid supply/demand indicator (including an “AMN model” setting).
Category
Technology
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