OPEN-SOURCE SCRIPT

Demand/Supply Absorption Pattern

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Hey everyone,

I'm publishing this indicator to seek feedback and support from the community.

This indicator is designed to identify, confirm, and send alerts whenever a Demand/Supply absorption pattern appears on the chart.

Core Logic:
Impulse Move – A single candle or a cluster of candles with a strong bullish/bearish move, characterized by a price range and volume significantly exceeding the ATR and average volume. (I've already implemented this logic and highlighted these zones with rectangles.)

Absorption Phase – Following this move, signs of exhaustion in the previous Demand/Supply emerge. These signs can include small-bodied candles like Doji or Inside Bars, combined with low volume, indicating a potential absorption phase.

Breakout Confirmation – Finally, a breakout candle in the opposite direction confirms the reversal after the consolidation phase.

Challenges & Community Support
I've encountered difficulties in fully implementing steps 2 and 3. While detecting strong impulsive moves and sending alerts has already been helpful in tracking potential setups, completing the full pattern requires waiting 3-4 hours (on a 1-hour chart) or even until the next day (on a 4-hour chart). This delay makes it easy to miss potential price movements in real time.

I’d love to get feedback or suggestions from the community to improve this indicator further.

Thanks for your support!

Cheers! 🚀

Pernyataan Penyangkalan

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