Overview
Supply/demand is a very famous trading method that helps traders gauge & takes advantage of trading actions made by BIG PLAYERS (like banks or funds), whose heavy positions seriously impact the market.

Unfortunately, each trader draws supply/demand zones differently. And ironically: when asked how they draw supply zones or demand zones, what their rules are – they even cannot answer with certainty and clarity. This makes it nearly impossible to code a great NinjaTrader 8 supply and demand indicator.

That’s why ninZa.co set a quest to develop this challenging indicator for the NinjaTrader community. Supply/Demand Discovery, our success & pride, is one of the very rare supply and demand indicators for NinjaTrader 8, and perhaps the most accurate version!

Why is our NinjaTrader 8 supply and demand indicator the superior version?
Because it does NOT repeat the mistake of most existing NinjaTrader supply and demand indicators: they all just draw supply/demand zones from market tops/bottoms. This mistake makes supply/demand nothing but support/resistance (we already have Market Extremes for support/resistance). However, a critical thing traders must understand is that: supply/demand and support/resistance are 2 different things, not one!

Our NinjaTrader 8 supply and demand indicator truly reflects the mechanism of supply & demand – the 2 forces behind price discovery in all markets. Here are the correct definitions:

A supply zone is where the supply overwhelms the demand (sellers dominate). This makes the price PLUMMET.
A demand zone is where the demand overwhelms the supply (buyers dominate). This makes the price ROCKET.
As you see, supply/demand zones do not just show up at tops/bottoms. They may occur somewhere in the MIDDLE, which is the key difference to support/resistance.

Our awesome NinjaTrader 8 supply and demand indicator discovers supply/demand zones by searching for large moves happening within a very short period (on chart: you see the price rocket/plummet). It allows you to fully define the criteria of a large move (example: at least 3 ninZaATR within 3 bars, or at least 10 ninZaATR within 7 bars…).

Trading styles
Supply/Demand Discovery is extremely helpful for many common trading styles:

Reversal trading: If a false breakout occurs, the odd for seeing a successful reversal is very high.
Support and resistance: Supply and demand zones are natural support and resistance levels.
Stop loss and take profit: Always place your profit target ahead of a zone and set your stop order behind a zone.