Pivot-Based Supply and Demand Entries with Sweeps and Daily Loss Limits
Summary
This strategy builds demand and supply zones around confirmed pivot lows and highs, padding each pivot by a configurable amount. Long setups require a demand-zone rejection, a bullish sweep of recent lows or a simpler bullish attempt, upward displacement, price above an exponential moving average, and a recent range large enough to avoid the strategy’s chop filter. Short setups mirror those conditions at supply zones. Entries use a fixed contract quantity, with stops placed beyond the relevant zone and profit targets set as a multiple of the entry risk.
A daily loss limit blocks new entries and closes an open position when the limit is reached. The script plots zones and entry markers. Its settings include a nominal account size and an NQ/MNQ-oriented name, but it does not establish suitability for either contract or show test results. Pivot confirmation introduces delay, while fixed quantity, zone padding, and the daily calculation may behave differently across instruments and trading sessions; no costs or slippage analysis is supplied.
Key ideas
- Confirmed pivot highs and lows anchor padded supply and demand zones.
- Entries require a zone rejection plus a sweep or attempted reversal, directional displacement, EMA bias, and a non-choppy range.
- Stops sit beyond the relevant zone, while profit targets are defined as a multiple of the entry risk.
- A daily net-profit threshold blocks new trades and closes any open position after the limit is hit.
- The document provides no backtest results or evidence that its fixed contract sizing generalizes across markets.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.