Understanding the Shved Supply & Demand Indicator in Forex Trading
The Shved Supply & Demand Indicator is a powerful and visually intuitive tool used by many forex traders to identify key areas of support and resistance in the market. By automatically marking out important supply and demand zones, this indicator helps traders make informed decisions about entry and exit points.
🔍 What Is the Shved Supply & Demand Indicator?
This indicator is based on the core principle of supply and demand zones — where the price of a currency pair tends to react. These zones represent areas where significant buying (demand) or selling (supply) occurred in the past, and are likely to influence price behavior in the future.
Unlike traditional support and resistance levels that are often drawn manually, the Shved Supply & Demand Indicator automatically detects and highlights these zones on the chart, making analysis faster and more consistent.
🧠 How It Works
In the image above (USDCAD, H1 timeframe), you can see multiple colored zones representing different levels of supply and demand:
Dark Red Zones – Verified Resistance (Retest=1): These zones have been tested once and proven to act as resistance. Price is likely to reverse or stall upon reaching this area again.
Purple Zones – Verified Support (Retest=1): These zones have acted as strong support in the past and are likely to hold if the price falls again.
Gray Zones – Turncoat Support: These are areas where the role of the zone has switched — for example, a resistance level turning into support after being broken.
Black Zone – Weak Support: This level has not been tested or confirmed strongly, so it's less reliable compared to verified zones.
✅ Key Features
Automatic Detection: No need to draw zones manually.
Retest Count: The indicator keeps track of how many times a zone has been tested, which helps measure its reliability.
Color-Coded Zones: Makes it easier to differentiate between verified and unverified areas.
Dynamic Updates: Zones adjust as price action evolves.
📈 How to Use It in Trading
Entry Points: Look to enter buy trades near verified demand (support) zones and sell trades near verified supply (resistance) zones.
Stop Loss Placement: Place stops slightly outside the supply/demand zones to reduce the risk of false breakouts.
Zone Strength: Prioritize trades near zones with more retests or those marked as "verified" for higher probability setups.
Confluence: Combine with other technical tools like candlestick patterns, moving averages, or trendlines for better accuracy.
🧩 Pros and Cons
Pros:
Easy visual reference for key trading zones
Great for both beginners and experienced traders
Reduces subjectivity in identifying support/resistance
Cons:
May repaint in live markets
Should not be used as a standalone strategy — better when used with confirmation tools
Conclusion
The Shved Supply & Demand Indicator is a valuable asset in any trader’s toolbox. By helping to highlight critical price zones automatically, it enhances both precision and confidence in trade planning. However, like all indicators, it works best when combined with a solid trading strategy and proper risk management.
