Demand And Supply

Demand And Supply

Demand and Supply Oscillator separates the trades executed at best bid and best ask prices to show who has the control in the market.

Categories: Indicators
Platforms: Sierra Chart



Demand and Supply Indicator

Demand and Supply Oscillator separates the trades executed at best bid and best ask prices to show who has the control in the market.

  • When the Demand and Supply line have a gap indicates which side of the market it's dominating
  • When the Demand and Supply line are low they indicates possible areas of no demand
  • When the Demand or Supply lines are going in opposite direction of the price (divergence) be ready for a possible change in trend
  • When the Demand and Supply lines are crossing they indicates a change in who dominates the maket (Buyers or Sellers) and they will try to move the price in their direction.

Example 1:
Buyers are in control and they move the price up with an aggresive buying, after thay they retired from the bid and the sellers take the control of the market trying to move the price down but the buyers start an agresive buying to mov the price in a new high


Example 2:
Buyers are more aggresive than sellers, the demand it's in control with no supply in a uptrend and the price start to reverse when the supply take the control of the market


Example 3:
Buyers are in control and they lost it when the demand decreases and increses the supply, the sellers are in control with no demand,  they increase his control and move the price down with an aggresive selling