Engulfing Patterns with Rolling Supply and Demand Levels

Summary

This strategy pairs bullish and bearish engulfing candles with rolling price extremes presented as supply and demand zones. It enters long after a bullish engulfing pattern when price is above the recent low zone, and short after a bearish engulfing pattern when price is below the recent high zone. The described setup uses a 15-minute trading timeframe, allocates 10% of equity per trade, and sets a 1.5% stop loss against a 3% target.

The document gives a published backtest configuration for ETH/USDT on Binance spanning roughly a year, but supplies no performance figures or comparison, so it offers no evidence that the rules are profitable. The implementation is also simpler than the ICT framing suggests: its zones are highest and lowest prices over 20 periods, and the stated entry conditions do not require a breakout through those zones. The write-up notes that fixed exits may fit market conditions poorly, signals may be frequent, and zone identification can be unreliable. It recommends testing and considering volatility, volume, trend, and multiple timeframes.

Key ideas

• The entry rules combine candle engulfing patterns with recent rolling highs and lows.
• Long entries use bullish engulfing candles above the rolling low, while short entries use bearish engulfing candles below the rolling high.
• The described risk setup uses 10% of equity with a 1.5% stop and a 3% target.
• The published ETH/USDT backtest configuration includes no performance results.
• Fixed exits and basic zone definitions may not adapt well to changing market conditions.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.