Market-Structure Supply and Demand Entries with Trend, Risk, and Confirmation Filters
Summary
This backtest script builds directional bias from swing pivots and breaks of structure. A bullish break marks the latest swing low as a valid level; a bearish break marks the latest swing high. On a break, it searches back through recent bars for an opposite-colored candle and uses that candle’s range as an active demand or supply zone. Trades are considered when price returns to the corresponding zone, with an optional macro EMA filter and optional confirming candle.
Stops sit at the far edge of the zone, while targets use the latest swing in the opposite direction. Entries require a configurable minimum reward-to-risk ratio, and quantity can be based on a percentage of equity risked against stop distance or set to fixed units. The document supplies implementation details but no strategy-report results. Its claims of suitability across markets and timeframes are not substantiated here; pivot confirmation, zone selection, fill assumptions, and short-position margin can all affect live results and backtest interpretation.
Key ideas
- Swing pivots and closes beyond prior swings define bullish or bearish structure breaks.
- The script selects a recent opposing candle as a demand or supply zone after a break.
- Zone retests can be filtered by a macro EMA and a confirming candle.
- Stops use zone boundaries, targets use the latest opposing swing, and entries must meet a minimum reward-to-risk threshold.
- Risk-based sizing depends on stop distance, while the document gives no performance results to validate the strategy.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.