Automatic MT4 supply and demand indicator


The automatic MT4 supply and demand indicator is a free Forex indicator plotting automated Supply and demand zones on your chart.

Supply and Demand is a basic economic term, which denotes the availability of sellers willing to sell and buyers willing to buy. Having said that, supply and demand are important factors of price movement. In fact, both supply and demand are regulating factors for the price, and at the same time price regulates supply and demand.

Given that trading is all about price movement, the concepts of supply and demand should be incorporated in forex trading.

The driving force behind changes in price is supply and demand. When there are more buyers than sellers, the market price will move up. Conversely, when there are more sellers than buyers, the market price will move down. When buyers and sellers are more or less even, the market will range. These simple concepts are very powerful and allow us to analyze naked charts in order to determine where the price is likely to go.

Since the current price is determined by past prices, this is a very simple method of technical analysis and a highly successful trading style that makes it possible to identify a specific entry price, and a supply zone or demand zone. Stop-loss and take-profit levels are also easily identifiable

You can use this Supply and Demand indicator on any timeframe, however, it works best on H1 and above timeframes. Moreover, you can trade any currency pair from any of the AtoZ Markets Approved Forex Brokers.

How to trade with the Automatic MT4 supply and demand indicator?

Let’s break the rules of this indicator for Buy and Sell setups as the following:

Buy Setup – Entries, Exits, and SL

To simplify this strategy, we will be using a Supply and Demand indicator, which conveniently plots these probable supply and demand areas.

Buy Entry: To enter a buy setup, we must observe price as it touches the nearest fresh demand area. Our indicator draws this zone as a blue rectangle. Once the price touches the area, the next candle should bounce off the blue rectangle. This in itself is a strong bullish indication.

Stop Loss: The stop loss should be just a few pips below the blue rectangle.

TP1: The take profit for the first half of the position should be the 50% line in between the demand area (blue rectangle) and the nearest supply area (red rectangle).

TP2: The take profit for the remaining half of the position should be the 80% line between the demand area (blue rectangle) and the nearest supply area (red rectangle).

Trailing Stop: As soon as the price hits the first take profit target, you should trail the stop loss to breakeven plus a few pips.

Sell Setup – Entries, Exits, and SLs

Sell Entry: To enter a buy setup, we must observe price as it touches the nearest fresh supply area. The tool draws this as a red rectangle. As soon as the price touches the area, the next candle should bounce off the red rectangle. This is an indication that the price is likely to drop.

Stop Loss: The stop loss should be just a few pips above the red rectangle.

TP1: The take profit for the first half of the position should be the 50% line in between the supply area (red rectangle) and the nearest demand area (blue rectangle).

TP2: The take profit for the remaining half of the position should be the 80% line between the supply area (red rectangle) and the nearest demand area (blue rectangle).

Trailing Stop – As soon as the price hits the first take profit target, you should trail the stop loss to breakeven plus a few pips.

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on the “Download Indicator” button located at the bottom of the screen.
  2. Save the file to your computer.
  3. Extract and move the files into the MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select the “Automatic MT4 supply and demand indicator” template to apply it on the chart.

Note: Tim Morris is the creator of this indicator. AtoZ Markets does not carry any copyrights over this trading tool.

The last update for this trading tool was on the 27th of August 2020.

  1. George Skipper says:

    This is a very good indicator. But Do you know how to make it automatk?

  2. YR says:

    Does anyone use ths indicator that can share his feedback?

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