Supply Demand Imbalance

Easily spot supply/demand imbalances in the marketplace, and identify divergences that you can leverage in your trading.


Welcome to the fourth episode of “How to Thinkscript”. We are, home of the Volatility Box, the most robust ThinkOrSwim indicator based on statistical models built for large institutions and hedge funds.

In today’s video, we’re going to talk about how to spot supply/demand imbalances in the marketplace, and use that to find divergences that we can use in our trading. This is primarily useful in day-trading anything that has a heavy weight in the indices (think the broader markets itself through SPY, QQQ, etc. or bigger names like MSFT or AAPL.

To find this supply demand imbalance, we use two key market internal tools: the Advance-Decline Spread and the NYSE Tick.

If you’d like to skip the tutorial and start playing with the indicator right away, it’s available to download for free below.

Click the button below to download the Supply Demand Edge

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