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Automatic MT4 supply and demand indicator

Oct 16, 2019
Automatic MT4 supply and demand indicator

You can now download the Automatic MT4 supply and demand indicator for free on AtoZ Markets indicators gallery. 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.

This indicator can be used in any timeframe, however, it is recommended to use it for H1 and above timeframes. Moreover, you can trade any currency pair which was made available to you by your FX broker.

How to trade with Automatic MT4 supply and demand indicator?

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 top right corner 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.

Last update for this trading tool was on the 16th of October 2019

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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