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Trading Supply and Demand with TradingView

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In this article, I will show how you can trade supply and demand with TradingView platform.

TradingView is one of the most advanced, sophisticated, and cutting-edge online trading platforms.

Unlike MetaTrader, TradingView is a browser-based charting platform that doesn’t require any installation process. You can also access it on any of your devices: desktop/laptop (Windows and Mac), your phone (android and iOS) or your tablette.

TradingView gives you real-time data to enables you to do your market research anywhere, anytime.

This trading platform is beginner-friendly and has all the charting tools a trader will need to analyze the markets.

TradingView also provides a great learning platform as traders share their market insights and trading ideas through its publishing feature. This is an amazing feature because it allows traders to learn from others as they can see what they are posting and how they analyze the market.

All you have to do is create a free account, open TradingView on your browser or on your phone, and start charting and publishing ideas in a matter of seconds.

Now, let’s see how you can trade supply and demand with TradingView and take advantage of some of its advanced tools and features.

Create your TradingView Account

TradingView has four plans for you to choose from: Basic, Pro, Pro+, Premium.

You can start with the basic plan, which is free, so that you can test the platform and see if it suits your trading needs. Then, if you need more features you can simply upgrade your subscription to one of the Pro versions: Pro, Pro+, and Premium.

supply and demand with tradingview

To start with the basic free plan, click here to go directly to the Sign up page.

Personally, I prefer the Pro+ plan because it gives me the ability to use up to 4 charts on the same screen. With the Pro plan, you only get 2 charts on the same window.

So, now that you have a TradingView account and you’re all set, let’s move on!

Customize your TradingView Layout

When you sign in into your account and open a chart on your platform, you will get something that looks like this chart below:

supply and demand with tradingview

I will show you how to customize your chart and save the changes as a template. This will save you a lot of time, especially if you are using indicators and changing the default settings of the chart.

The first change you need to do is to modify the colors of the candles by right-clicking anywhere on the chart to open a drop-down menu. Then, click on Settings to open the chart settings:

supply and demand with tradingview

Here you can change the colors of the candlesticks. I personally prefer to remove the color of the candle’s body and make it transparent.

Once you are done, click on Ok.

In order to save your changes as a customed layout, go to the top right of the platform where you have unnamed, click on the arrow to open the drop-down menu and click on rename to change the name of your layout.

supply and demand with tradingview

Choose a name for your layout and click save. Here, I’m going to name it “Template_1”.

supply and demand with tradingview

Notice that the name of the layout changed from “unnamed” to “Template_1”.

Next time when you open a new chart and you want to apply your layout, all you have to do is click on the arrow, then on load chart layout from the drop-down menu.

Multiple Chart Layout

The reason why you should trade supply and demand with TradingView is that it enables you to have more than one chart on the same window.

It also allows you to sync your charts automatically without you having to do it manually for each chart.

For example, if you added some indicators on your monthly chart and you want them to appear on your weekly and daily charts, you simply right-click anywhere on the chart to open the drop-down menu and choose “apply these Indicators to Entire Layout” option.

This will sync all your indicators on all your open charts.

To change the layout of your screen, go to the top right navigation bar on your platform and click on “Select Layout” to choose the layout you want to use.

supply and demand with tradingview

In this example, I’m going to choose the 3 chart layout. This feature allows you to select the number of charts to display and also how do you want them to be positioned on your screen.

supply and demand with tradingview

Insert Indicators on your Charts

There are 4 indicators that are useful when you trade supply and demand with TradingView.

These indicators are available on the public library under “Indicators & Strategies” and free to use on your charts.

To add indicators on your charts:

Go to the top left on your navigation bar and click on the “fx” tab to open the “Indicators & Strategies” window.

supply and demand with tradingview

Next, click on “Public Library” to display the whole list of available indicators and strategies to choose from.

If you see an interesting indicator that you want to insert, just click on the indicator’s script name and it will automatically inserted.

You can also use the search bar to look for a specific indicator using keywords or if you know the name of the indicator. For example, I want an indicator that shows me all the engulfing patterns on my chart.

For that, I typed “Engulfing” in the search field and it shows me all the available indicators with the term Engulfing.

supply and demand with tradingview

A small toolbox will appear on the top left corner of your chart. Whenever you add an indicator, a small toolbox will appear there with features to let you customize, hide, and remove the indicator from your chart.

supply and demand with tradingview

Now that you know how to search for indicators and insert them on your chart, you need to save your layout.

To save your customed layout, go to “Manage Chart Layout” and click on the drop-down menu. There you have two options: if the Autosave is on, you are all set. This feature will automatically save your changes on the active layout on your chart.

If Autosave is off, then you need to click on save everytime you make a modification to your layout.

supply and demand with tradingview

TradingView Indicators

The first thing you need to do in order to trade supply and demand strategy is to identify the zones. This is the most important part of the trading strategy.

Basically, supply and demand zones are price levels where either supply exceeds demand or demand exceeds supply. Once you have identified a potential zone to trade, the next step is to draw your proximal and distal lines around the origin of the move, which is called the base.

If you are using MetaTrader or any other trading platform, it can be hard to properly identify supply and demand zones. Instead, you can use TradingView Public Library to use an indicator that shows you the basing candles of supply and demand zones on your chart.

All you have to do is to choose the right zone to draw your proximal and distal lines around the basing structure.

TradingView has a public library that contains more than 100,000 indicators and strategies developed by community traders for traders to use.

1. Boring Candle Indicator

A base candle is a small candle with a tight body. The body has to be less than or equal to 50% of the candle’s range. This is called a boring candle.

If the body is more than 50% of the candle’s range, it is called an exciting candle.

The Boring Candle indicator helps you identify boring candles on your price chart. This is a good tool to have on your chart, especially if you are new to trading supply and demand.

The indicator colors the boring candles in blue so that it becomes easier for you to draw your supply and demand zones.

To add this indicator on your chart, click on “Indicators & Strategies” and select “Public Library“. In the search bar type “Boring Candles” and choose the one created by SurjeetKakar.

supply and demand with tradingview

Notice how the indicator saves you time and effort by highlighting the boring candles in blue for you to see.

supply and demand with tradingview

Once you click on the Boring Candle indicator, it will appear instantly on your chart and you can draw your zone using the rectangle tool from the left sidebar of TradingView.

supply and demand with tradingview

In this example, I used a red rectangle to draw the supply zone and the green one to draw the demand zone.

supply and demand with tradingview

2. Bullish and Bearish Engulfing Indicator

The next indicator in my list is the Bullish/Bearish Engulfing indicator by AlfonsoMoreno.

What this indicator does is simply showing you bearish and bullish engulfing candles on the chart. Engulfing candles are very powerful candlestick patterns.

A bullish engulfing candle signals a bullish momentum and that the trend is likely going up. A bearish engulfing candle signals a potential bearish momentum to the downside and that trend is likely to move down.

If you have an engulfing candle next to a boring candle, this gives you a confirmation about the potential direction of the trend.

Here’s what this indicator looks like when you add it on your chart.

supply and demand with tradingview

As you can see, it colors the bearish engulfing candles in red and the bullish engulfing candles in green.

Feel free to changes the colors in the settings.

The chart below shows both indicators: Boring Candle and Engulfing Bullish/Bearish Indicators.

They identifyied a demand zone with a strong bullish engulfing candle confirming a strong bullish momentum in this price level.

This means that the demand zone is strong enough to push prices higher and if price returns to this zone, we go long. Price did in fact returned to test the demand zone and continued moving higher in a nice uptrend.

supply and demand with tradingview

3. Demand & Supply Zone Indicator

The thrid indicator in my list is the Demand and Supply Zone v1.3 by Muthushun.

This indicator highlights the boring candles, the explosive candles (ERC), and tells you if it’s a demand or a supply zone.

Here’s how it looks like on a chart:

supply and demand with tradingview

This indicator is a must have if you are trading supply and demand with TradingView. The blue candles represent the boring candles. The dark ones are the explosive candles.

4. Engulfing Detector Indicator

The last indicator is called the Engulfing Detector (Supply and Demand) by BitcoinJesus.

supply and demand with tradingview

The indicator draws supply and demand zones using the engulfing pattern. You can use this indicator to find supply and demand zones but you have to use a filtering system, such as the scoring system, to filter out the weakest zones from the strongest ones.

The Engulfing Detector comes in handy, especially for beginner traders that are still learning how to trade supply and demand.

Backtesting Supply and Demand with TradingView

The backtesting tool is another cool feature worth mentioning that you can use to improve your trading with TradingView.

TradingView has a backtesting feature built-in to let you backtest and improve your trading system for free.

With the basic plan, you can backtest using only the following time frames: Monthly, Weekly, and Daily.

Lower than the daily chart, you will need to upgrade your subscription to Pro plan.

To use the backtest feature, go to the top navigation bar and click on “replay” as shown on the chart below:

supply and demand with tradingview

A red line appears on your chart to let you select where do you want to start your backtest. Once you choose the starting point, the right side of the chart from where you positioned the red line will disappear.

The replay feature let’s you adjust the speed at which the price moves on the chart. If you want to move one candle at a time, you can use the forward button instead.

This amazing feature lets you backtest your strategy and improve your trading skills.

For example, you can choose to backtest one year of historical price data and use the replay feature to see how you will do in the trading simulation.

This will help you improve your performance and develop a trading edge.

Conclusion

Trading supply and demand with TradingView is way better and easier than other trading platform. The free indicators are making the whole process of identifying and drawing supply and demand zones much quicker than doing it manually.

The TradingView platform is easy to use, has great built-in technical tools, and an amazing trading community to share knowledge and skills. This will give you the ability to improve your trading skills and develop a winning mentality in the long run.

The other interesting feature is the backtesting tool. This tool not only helps you improve your strategy but also gives you the opportunity to work on your trading psychology.

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1 Comments

  1. I like how TradingView is browser based and does not require an installation. I never knew trading view has a built in backtest feature. Great post and I will definitely check out the boring candle indicator.

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