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TD Supply & Demand Points: Pineify Pattern Rules and Confirmation Delay

· 5 min read
Pineify Team
Pine Script and AI trading workflow research team

Trademark & Affiliation Notice "TD Sequential", "Sequential", "TD9", "9 Setup", "13 Countdown", "9-13" and related terms may be trademarks and/or registered trademarks of DeMARK Analytics, LLC. Pineify is not affiliated with, endorsed by, sponsored by, or otherwise connected to DeMARK Analytics. This page is for educational and informational purposes only. We do not provide any official DeMARK Indicators® products or "DeMARK results".

Pineify's TD Supply & Demand Points configuration marks local high and low patterns. The rules described here are the repository's implementation, not a claim that it reproduces an official licensed DeMARK product. The pattern uses later candles to recognize a past point, so its confirmation time differs from its plotted location.

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Level 1 checks three candles​

A supply pattern requires the previous bar's high to exceed both the current high and the high two bars ago. A demand pattern requires the previous low to be below both neighboring lows. The comparisons are strict: equal highs or lows do not satisfy them.

The condition becomes evaluable on the bar after the candidate point. The current bar is still part of the comparison, so a closed-bar workflow must wait until that bar closes. The plotted cross is shifted back one bar to mark the candidate point.

Level 2 is more specific than a five-bar extreme​

The supply rule requires a central high above the two adjacent highs, with each adjacent high also above the outer high on its own side. Read chronologically, highs rise over the first three candles and fall over the next two. Demand uses the mirrored sequence of lows.

A central high that merely exceeds the other four highs is not enough if the intermediate sequence fails. The current bar is two bars after the central point, and the plot is shifted back two bars. This extra pattern requirement is not evidence of a higher win probability.

SettingPatternRecognition barPlot offset
Level 1Strict three-candle local high or lowOne bar after the pointMinus one bar
Level 2Strict five-candle rising/falling sequenceTwo bars after the pointMinus two bars

Configure the actual inputs​

Pattern Level defaults to 1. Use 1 or 2: the exposed outputs are gated to those two values. Supply and demand colors are drawing settings; they do not change the price comparisons. The implementation plots small crosses above or below the candidate candle.

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Select the indicator in Pineify's Visual Editor, generate the script, and inspect it in TradingView's Pine Editor before adding it to the chart. Check examples where neighboring prices are equal as well as ordinary peaks and valleys.

How to search for and add indicator pages in the Pineify editor

Avoid looking backward with future knowledge​

A chart cross placed on a past candle can look like a contemporaneous signal. It was not available at that candle's close because the comparison still needed later bars. Backtesting an entry at the marked point using the later confirmation would introduce future information.

Use the Boolean condition on its detection bar when constructing a causal rule. If you then wait for another confirmation, record that additional delay too. The function itself has no explicit closed-bar gate, so open-bar conditions can still change before their confirming candle finishes.

A price point is not an institutional order map​

The calculation reads highs and lows. It does not observe institutional orders, resting liquidity, or trader identities. Supply and demand are names for the pattern outputs, not direct measurements of who will buy or sell at that price.

A marked point can be used as context for a later retest or breakout rule, but the indicator does not define entry orders, position size, exits, or the width of a tradable zone. Specify those separately, include costs and gaps, and test all qualifying observations. No tested win rate or best market/timeframe is established here.

Is Level 2 guaranteed to be more reliable?

No. It imposes a different five-candle sequence and a longer recognition delay. Performance requires a separately defined strategy and test.

Can I enter at the candle carrying the historical cross?

The cross is plotted backward after later bars make the pattern detectable. A causal test cannot assume the pattern was known on the marked candle.

Does the indicator identify institutional buying or selling?

No. Its inputs are price highs and lows; it does not observe participant identity or orders.

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