Precision Supply MonitorPrecision Supply Monitor — Wyckoff-Inspired Supply & Demand Phase Detection
Precision Supply Monitor (PSM) analyzes price action and volume behavior to identify supply and demand phases in real time. The script evaluates market conditions using a weighted scoring model and presents the results through a three-meter dashboard table designed to help visualize how supply and demand conditions are evolving.
PSM is particularly useful for analyzing nano, micro, and small-cap stocks where float mechanics and supply rotation can strongly influence price behavior.
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QUICK START
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1. Start with the Phase row to see the current supply/demand environment.
2. Check Float Rotation to understand how much of the float has traded.
3. Watch Squeeze Pressure for compression that may precede expansion.
Strong readings often occur when multiple meters align — for example, elevated Float Rotation combined with rising Squeeze Pressure while price remains stable.
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PHASE DETECTION
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PSM continuously evaluates price and volume behavior to determine which of five phases best describes the current market environment. Each phase is scored from 0–100% and the highest scoring condition becomes the active phase displayed in the dashboard table. The chart examples below correspond with each phase description.
DISTRIBUTION
Market behavior may reflect selling pressure, characterized by bear-biased candles, the appearance of new lows within the lookback window, and elevated relative volume. A weighted scoring model prioritizes bear bias and new-low activity while applying penalties during tight consolidations to reduce false readings. Distribution can occur during both declining and advancing price action — selling pressure may be present even as price moves higher, particularly during late-stage momentum moves on low-float stocks where supply begins to overwhelm demand.
ABSORPTION
Buyers may be absorbing available supply within a compressed range. The primary signal is high volume occurring alongside a small price range — behavior commonly associated with supply being absorbed without significant price decline. Price holding above a short-term average strengthens this phase.
FLOAT LOCK
Supply availability begins to decline while price remains stable. Volume contracts while turnover remains elevated relative to float or average volume. This behavior can occur when a large portion of tradable shares has already rotated through the market.
FLOAT STRESS (requires float input — nano/micro/small tiers)
Float rotation has reached extremely elevated levels. When turnover approaches six times the float, supply may become thin and smaller buying pressure can move price more rapidly.
PARABOLIC RISK (requires float input — nano/micro/small tiers)
Turnover has reached extreme levels (approximately eight times float or higher). These conditions sometimes occur during late-stage momentum moves where exhaustion risk increases.
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THREE-METER DASHBOARD
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PSM displays three independent meters that measure different aspects of market behavior. The dashboard table updates in real time as new bars print, allowing traders to observe how supply and demand conditions evolve during active trading.
PHASE METER
Displays the strength of the currently detected phase (0–100%). Higher values indicate stronger alignment between observed market conditions and the detected phase.
FLOAT ROTATION
Measures how much of the tradable float has rotated through the market during the turnover window. When float shares are entered manually, turnover is calculated relative to float size. If float is not entered, the meter falls back to a volume-based proxy and displays "(no float)".
SQUEEZE PRESSURE
Measures compression and stability conditions that may precede directional expansion. The score incorporates range compression, price stability, relative volume, absence of new lows, and an optional float-rotation bonus when float data is provided.
Reading the meters together can help contextualize market behavior. For example:
• High Float Rotation + High Squeeze Pressure — supply rotation with compression
• High Float Rotation + Low Squeeze Pressure — heavy trading but unstable price action
• Low Float Rotation + High Squeeze Pressure — early compression forming
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TIER-AWARE THRESHOLDS
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All detection thresholds automatically adjust based on instrument tier.
PSM classifies instruments as:
Nano • Micro • Small • Mid • Large • Crypto • ETF
When market capitalization data is unavailable, the script falls back to average dollar volume.
Each tier uses calibrated values for:
• Relative volume thresholds
• Range compression detection
• Turnover requirements
• Volume-drop conditions
• New-low lookback windows
• Bear-bias scoring windows
This ensures the detection model adapts to the typical behavior of the instrument being analyzed.
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FLOAT OVERRIDE INPUT
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Float data on nano, micro, and small-cap stocks can occasionally be outdated or inaccurate — particularly after reverse splits or secondary offerings.
PSM allows users to manually enter float shares for Nano, Micro, and Small tier instruments. When provided, turnover calculations use actual float size rather than average volume. This enables Float Rotation, Float Stress, and Parabolic Risk phases to operate more accurately.
Mid, Large, Crypto, and ETF instruments ignore this input and automatically use volume-based turnover.
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PHASE MARKERS
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Optional markers plot above or below candles when all required phase conditions are met simultaneously and persist for two or more consecutive bars. The two-bar requirement reduces noise from single-bar spikes.
• Yellow circle (below) — Absorption
• Green circle (below) — Float Lock
• Red circle (above) — Distribution
• Orange circle (above) — Float Stress
• Magenta circle (above) — Parabolic Risk
Float Stress and Parabolic Risk markers require float shares to be entered manually. Without a float value these markers will not appear.
Markers are informational and do not represent trading signals.
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WHAT MAKES PSM DIFFERENT
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Most volume and momentum indicators focus on price direction or volatility expansion. PSM focuses specifically on the supply side of the market — how shares are rotating, whether buyers may be absorbing that supply, and when the available float may be becoming thin enough to influence price movement.
Standard indicators are typically calibrated for large and mid-cap markets where float is abundant. On nano and micro-cap stocks, float mechanics behave differently. A relatively small amount of volume can rotate a large percentage of the available float, producing price behavior that standard RVOL or momentum tools may not capture accurately.
PSM addresses this by combining Wyckoff-inspired phase scoring with float rotation mechanics and tier-aware thresholds that automatically adjust to the instrument being analyzed. Instrument tier is determined using market capitalization data available within TradingView, falling back to average dollar volume when market cap data is unavailable. The result is a supply and demand framework designed specifically for the behavior of low-float momentum stocks — while remaining functional across all instrument types.
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HOW TO USE
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PSM is designed as an educational and observational tool. The following describes how traders may interpret the information it displays.
Start with the Phase row
The active phase provides a high-level read on the current supply and demand environment. Distribution may indicate that selling pressure is present. Absorption suggests buyers may be active. Float Lock suggests supply may be thinning. Float Stress and Parabolic Risk indicate elevated float rotation that may influence price behavior.
Use the rationale
A plain-English rationale at the bottom of the dashboard table identifies the primary factors driving the current phase reading — helping traders understand not just what the phase is, but why it is occurring. Examples include "bear bias + new lows" during Distribution or "vol drying up + high turnover" during Float Lock.
Cross-reference the three meters
The Phase Meter, Float Rotation, and Squeeze Pressure meters each measure a different dimension of market behavior. Reading them together provides more context than any single meter alone. A phase reading supported by strong meter alignment across all three may carry more observational weight than one where the meters diverge.
Float Stress and Parabolic Risk as awareness signals
These phases indicate that float rotation has reached elevated levels. They are not entry or exit signals — they are contextual awareness indicators that suggest supply conditions may be changing. Traders should apply their own analysis and risk management when interpreting these readings.
Enter the float for nano and micro-cap names
TradingView float data can be stale or inaccurate on low-float stocks, particularly after reverse splits or secondary offerings. Entering the known float shares in the settings enables more accurate Float Rotation readings and unlocks Float Stress and Parabolic Risk phase detection.
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WHAT THIS SCRIPT DOES NOT DO
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Precision Supply Monitor does not generate buy/sell signals, execute trades, or manage positions. Phase readings update continuously as new data appears and may change as market conditions evolve.
This tool is intended to assist interpretation of supply and demand dynamics and should be used alongside independent analysis and risk management.
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SETTINGS OVERVIEW
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Display
• Show/hide stats table
• Table position and size
• Show/hide phase markers
• Marker offset (ATR)
Core
• Average volume length
• Average range length
• Turnover window
• Extension lookback
• Float Shares Override (0 = auto) — Nano/Micro/Small only. Enter known float (e.g. 7880000). Required for Float Stress, Parabolic Risk, and float-gated Squeeze bonus. Ignored on Mid/Large/Crypto/ETF.
Wskaźnik Pine Script®
