MT4/MT5 Supply and Demand Oscillator – Free Download | Forex Indicator Download – MetaTrader 5 Resource

Supply and Demand Oscillator is a free indicator developed by Trade Code Labs for MetaTrader 4 (MT4) and MetaTrader 5 (MT5) that takes a fundamentally different approach to S&D trading. Instead of drawing the typical rectangular area box on the chart, it runs an ATR-based algorithm in the background to detect institutional buy and sell levels, then converts them into a clean, independent windowed oscillator with simple values ​​between 0 and 100. A reading below 20 indicates that price is testing an area of ​​demand (support), while a reading above 80 indicates an area of ​​supply (resistance).

This article explains the indicator’s detection logic, smart zone filtering, how to read the oscillator and where to download it for free.

How it works – ATR-based area detection

Unlike traditional automotive supply and demand indicators that draw rectangular boxes on the chart, this indicator operates entirely within separate oscillator windows. The algorithm works in three stages:

• Phase 1: Scan historical price action – The indicator can retrace up to 300 bars (configurable by looking back at historical inputs) to identify impulsive price movements, large candles that often indicate institutional buying or selling activity.
• Stage 2: ATR-Based Significance Filter – Not every large candle qualifies as a zone. This indicator uses average true range (ATR) to determine whether a move is statistically significant relative to current volatility. This is the same volatility measurement used by tools like the Ferru MTF ATR indicator, but here it is used as a zone qualifying filter rather than a standalone volatility display.
• Stage 3: Zone to Oscillator Conversion – Once the valid supply and demand levels are determined, the indicator calculates the price’s position relative to these levels and outputs a value between 0 and 100.

Intelligent "non-stop" zone logic

This is the most striking feature of this indicator. If the price has already broken through a previous supply or demand level, the algorithm ignores this invalid zone and automatically searches further in history for the next valid level. This ensures that the oscillator is always referencing fresh, untested market structures, similar to how experienced traders manually abandon broken support and resistance levels and look for the next area of ​​interest.

The Supply and Demand Oscillator can be used on any Forex currency pair and other assets such as stocks, commodities, cryptocurrencies, precious metals, oil and gas. It can also be used on any time frame that works best for you, from 1-minute charts to 1-month charts. While this system can be used by traders of all experience levels, it is recommended that you practice trading on a demo account until you become consistent and confident enough to go online.

Key Features

• Oscillator Format – Displays supply and demand levels as clean 0-100 oscillators in separate windows, keeping the main chart uncluttered.
• ATR-Based Detection – Uses the average true range to identify statistically significant impulsive moves that form institutional areas.
• Intelligent non-stop filtering – automatically discards corrupted areas and refers only to new, untested levels.
• Adjustable Sensitivity – The zone sensitivity (multiplier) input allows you to filter only the primary zone (higher value) or include secondary zones (lower value).
• Configurable lookback – look back up to 1000 bars to find valid levels, adjustable via lookback history input.
• Non-Repainting – Once a region is created, it remains fixed. The oscillator measures the distance to these fixed points and does not redraw.
• Full Alert System – Receive notifications via pop-up, email and mobile push when price enters supply or demand zones.

For traders who want to confirm the general trend direction before trading S&D reversals, TCL Trend Radar offers multi-time frame trend adjustments to help you avoid counter-trend trades in supply or demand areas.

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How to read an oscillator

This oscillator operates on a range of 0-100, with three key areas:

• Below 20 (Demand Zone) – Price is testing valid historical demand levels previously entered by institutional buyers. This is a potential buying area.
• Above 80 (Supply Zone) – Price is testing valid historical supply levels previously entered by institutional sellers. This is a potential sales area.
• Around 50 (Balance) – Price is between supply and demand areas. There is no immediate reversal signal.

Trading Strategy

• Step 1: Wait for Limit Readings – Monitor the oscillator for readings below 20 or above 80. These indicate that price actually touched historical areas where institutional activity had occurred previously.
• Step 2: Look for confirmation – Don’t trade based solely on oscillator readings. When the value drops below 20, look for reversal candlestick patterns (pin candles, engulfing candles) on the main chart to confirm a bounce.
• Step Three: Enter the Trade – Once the area is confirmed, enter in the direction of the expected reversal. For position sizing, use the lot calculator to properly manage risk.
• Step 4: Set Stop Loss Out of Zone – Set your stop loss just above the supply or demand level. Since the oscillator is telling you that the price is at the zone boundary, your stop loss should be tight.
• Step Five: Target the Opposite Zone – Use the equilibrium level (50) as a conservative target, or hold to move towards the opposite zone for a higher reward-risk ratio.

As a standalone indicator, its effectiveness often depends on how it is combined with other tools or strategies. This indicator pairs perfectly with the Bollinger Bands trading indicator – when the demand area reading coincides with the lower Bollinger Bands touch line, the likelihood of a reversal increases significantly.

If you find this indicator useful, please consider visiting the indicator page on Trade Code Labs, leaving a comment and showing some support for this free tool. You can also submit feature requests and vote for updates directly from this page, and the developers will actively consider user feedback for future releases.

Frequently Asked Questions: Frequently Asked Questions

Conclusion

Supply and Demand Oscillator offers a whole new perspective on area-based trading by converting traditional support and resistance analysis into a clean oscillator format. ATR-based detection and intelligent non-stop zone filtering ensure only relevant institutional levels are tracked. However, while the oscillator simplifies readings, it is recommended to combine it with confirmation tools such as candlestick patterns, trend filters, or Bollinger Bands for more consistent entry timing.