Auction Finder

4 avr. 2023

█ OVERVIEW


Auction Finder is an imbalance-based trading indicator that offers valuable insight into supply and demand "auctions" within financial markets. Knowing what type of auctioning is happening around certain prices can give traders a significant advantage.

The framework of this indicator was designed to detect buyer/seller imbalances. This type of information is particularly important for professional traders who rely on a deep understanding of market dynamics to analyze supply and demand when making strategic trading decisions.

Price action trends are a critical aspect of trading, and analyzing supply and demand can provide valuable insights into these trends on all timeframes. Traders who take the time to understand these factors can improve their decision-making processes and achieve greater success in the markets.

Auction Finder helps traders pinpoint supply and demand imbalances that can lead to significant price movements. This is particularly valuable in volatile markets where quick decision-making and careful risk management are essential.


█ CONCEPTS

Auction Finder's algorithm incorporates several technical analysis tools when analyzing whether a supply/demand level is still acting as a support/resistance level. The main component is price action analysis, which involves analyzing how price behaves around the demand level.

Auction Finder is a technical indicator used in financial markets to identify supply and demand zones or auction areas on a price chart. When the indicator confirms a supply or demand zone, the box representing the zone will be filled with either all-green (for confirmed demand) or all-red (for confirmed supply) color.

However, there are cases where the supply or demand zone is absorbed, meaning that the market has absorbed all the available supply or demand in that zone. In these cases, the box representing the zone may appear green or red, but with no fill. This indicates that the zone was a significant area of interest in the past, but is no longer considered an active supply or demand zone.

Auction Finder's color-coding system can be helpful for traders and investors to identify potential buying or selling opportunities based on historical supply and demand levels. By identifying areas of confirmed or absorbed supply and demand, traders can anticipate potential areas of support or resistance in the future, which can aid in making more informed trading decisions.

For example, if a trader sees a confirmed demand zone with an all-green box fill color, they may expect buyers to be active in that area and anticipate a potential upward movement in price as demand absorbs available supply. Conversely, if a trader sees a confirmed supply zone with an all-red box, they may expect sellers to be active in that area and anticipate a potential downward movement in price as supply absorbs available demand.

If a trader sees a green box with no fill (absorbed supply) or a red box with no fill (absorbed demand), it may indicate a potential shift in market bias as the supply/demand has been absorbed, and price may move in the opposite direction. Overall, Auction Finder's color-coding is used to provide a visual representation of the supply and demand areas on a chart and to indicate the potential bias of the market based on the presence or absence of buying or selling pressure.


See complete Auction Finder Product Guide for more info.

15 avr. 2023

Notes de version

minor changes to Settings