#1

How to use the supply and demand higher timeframe levels

spreadsheet
6th October 2013, 08:08 AM
The Supply and Demand spreadsheet tool has been created with the goal of having a quick bird
view snapshot of where the currency pairs we're trading every day are located in the Daily,
Weekly Demand and Supply Curve.

This spreadsheet is outdated, some of members are currently working on a brand new
version with more automation.
Visit this link to learn about the new SD spreadsheet and rectangle indicator being created
Chris, one of the members.

We need to be aware of where we are located in the supply and demand curve, it is key to
have success in the markets.

After all what we all want to do is to "buy low" and "sell high" in order to increase our odds
success, and obtaining as much benefits as we can from the supply and demand imbalances in
the markets. This spreadsheet could be much better if I had the programming skills, but so far
it's an amateur trial to obtain BID/ASK prices from Metatrader by using DDE Server, that's all.
The other calculations, changing cells' background colors, calculating how low or high price is
in the curve, etc, are all done based on BID/ASK prices and manually entered proximal and
distal lines for D1, WK and MN supply and demand levels. There is also a png attachment that
will give you a quick visual look of what the spreadsheet for supply/demand looks like.

WHAT IS A DISTAL LINE AND A PROXIMAL LINE?

An area of supply or demand is not just a single price/line (like classic support/resistance), but a
zone/area composed of a number of pips. The highest part of that (rectangle) is the distal line,
that is, the highest price in the zone. The lowest part of that rectangle is the proximal line, which
is the lowest and the closest to current price.

• The closer we are to the a supply area, the better for selling and/or exiting your long
positions
• The closer we are to the a demand area, the better for buying and/or exiting your short
positions

The sole purpose of this spreadsheet is to allow you to know how high or low you are in the
higher timeframe's supply and demand curves, but you need to add manually both the distal and
proximal lines for both D1, WK and MN levels, or whatever timeframe you want to use as the
curve
IMPORTANT THINGS YOU NEED TO KNOW

• All proximal and distal lines prices are manually entered, you can change them and
the spreadsheet will do all the % calculations for you
• The spreadsheet has been created with free Open Office Calc, it's not possible to load
it in Microsoft Excel
Sensitivity: Internal document for Union Bank
 • You can add new pairs but you need to know how to do, we can't do it for you. The
pairs I've added can be copied/pasted, edited and adapted for a new pair but you need to
know how you have to do that
• Levels might differ depending on your broker, and of course depending on what you
consider to be the demand and supply areas in control at any given pair, it can be
subjective sometimes
• Drawing supply and demand levels can be considered an art. But it's not an art, it's
just practice and experience.You might see levels everywhere if you are new to supply
and demand, with time you will get the practice and become better and better and
drawing them

SPREADSHEET'S FEATURES

• There are 3 different BLOCKS or groups of columns that display Daily, Weekly and
MonthlySupply/Demand levels. They are displayed between current price zones
• You just have to add proximal and distal lines manually, remember
• Each supply and demand area is composed of these fields: current price, % location in the
curve, distal price and proximal price
• PIPS left for proximal line to be hit. These are the 2 pips fields located to both sides of
current price
• It will calculate how low or high price is in the D1, WK and MN curve in percentages and
will show them in the first 3 columns displaying different color codes depending on how
how or low price is at that currency pair
• Colors are repainted, if a zone is broken and price reenters the zone, it will look to you as
if it had not been broken, same applies to all cells

CONDITIONAL CELL HIGHLIGHTING

There are a few conditional highligiting that have been added to the spreadsheet which will
change the look of any given cell in order to visually help you distinguish what is going on with
all the currency pairs.

• Percentages, curve % or altitude (how high or low in the curve) are calculated by using
the proximal lines, a simple subtraction
• SD level about to be hit. If current price is between 0 to 40 pips from hitting the
proximal line of a SD level, the pip cell will be highlighted to yellow
• SD level broken. If current price is higher than the distal line, the cell will be highlighted
in Purple. This will mean that the SD area has been broken
• SD level has been hit, price is within the level. If current price has hit the proximal line,
the proximal line cell will be highlighted in Red. This will mean that current price is
within that area
• SD level has been penetrated more than 50%. If distal line cell is Yellow, it will mean
that price has penetrated your SD zone at least 50%
• Price is low in the curve . If we are low in the curve 0-40%, the % cell will be
highlighted in blue
• Price is in the middle of the curve. If we are 40-60 % in the curve, the % cell will be
highlighted in green
• Price is high in the curve. If we are high in the curve 40-60 %, the % cell will be
highlighted in green

Sensitivity: Internal document for Union Bank

 • Spread is too high. If spread is bigger than the average on your broker (this is a personal
setting), then the spread cell will be highlighted in yellow
Why all these conditions? How can it be of any help to you?
Checking the spreadsheet is the first thing I do in the mornings or at any time of the day that I
start trading, I will know which pairs I should look at first, because if the levels are broken or
penetrated, if price is too high or low in the curve or, I will be interested in setting a limit order
at the first valid previous SD level with a good imbalance, to keep on trading in the direction of
the breakout or the rejection.

How to add more currency pairs or how to modify existing ones if your broker uses suffixes for symbols?

• Many brokers use suffixes like . pro, m, etc, that are added at the end of the symbol. If
that is your case, you need to edit the current price cell formula
=DDE("MT4";"BID";"EURUSD";1) and change it to whatever your symbol is, like for
example: =DDE("MT4";"BID";"EURUSD.pro";1).
• You have to change that for both current price column and spread column, because the
spread column uses both bid and ask prices
• There are some calculations that use columns on the far right on the spreadsheet and some
variables lower. If you move the cells or columns, some of these calculations will not
work, like the % of penetration of a level, because it uses a fix variable within the
conditional formatting, like Sheet1.$AC$9

Sensitivity: Internal document for Union Bank