Dynamic Supply and Demand Zones [AlgoAlpha]

Category: volume, market_structure

Identifies supply and demand zones based on volume profile distribution and pivot points, highlighting areas of low volume node (LVN) as potential reversal or support/resistance zones.

Formula

1. \text{Length} = \text{Dynamic Pivot Lookback} \text{ or } \text{Fixed Input} \\ 2. \text{Range} = [\min(L), \max(H)] \in \text{Length} \\ 3. \text{BinWidth} = \frac{\text{Range}}{\text{Resolution}} \\ 4. \text{BinVolume} = \sum \text{volume if candle overlaps Price Bin} \\ 5. \text{Zone} = \text{BinVolume}_i < \text{BinVolume}_{i\pm1} \times \text{Tolerance} \text{ (Local Minima)}

Inputs

• Use Dynamic Look-Back (default: true)
• Look-back (For Non-Dynamic Look-Back) (default: 100)
• Pivot Point Detection Period (default: 200)
• Resolution (default: 40)
• Profile Horizontal Width (default: 33)
• Zone Tolerance (default: 0.93)

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