Pivot Reversals at Supply and Demand Zones with Daily Risk Limits

Summary

This intraday strategy looks for reversals around zones built from confirmed pivot highs and lows. It expands those pivot levels using an ATR-based width to form supply and demand areas. Long setups require a pivot low, price near demand, a bullish candle, RSI above a floor, and sufficient volume; short setups apply the corresponding conditions near supply with bearish candle and RSI filters.

Stops and three profit targets are set at ATR multiples from the entry, with partial exits assigned across the target levels. The script also limits trading to a configured New York session, caps the number of daily entries, tracks an equity drawdown threshold, and flattens positions near the session end. These are configurable controls, not evidence of successful prop-firm compliance or profitability. The document supplies code and default parameters but no backtest results; pivot confirmation delay, instrument behavior, costs, and implementation details should be evaluated before use.

Key ideas

• Confirmed pivot highs and lows anchor ATR-width supply and demand zones.
• Long and short reversal entries combine zone proximity with candle direction, RSI, and volume filters.
• ATR-based stops and staged profit targets scale exit distances to recent volatility.
• Session hours, daily trade count, daily drawdown, and end-of-day flattening constrain activity.
• The document provides no performance evidence or guarantee that the controls match any particular firm's rules.

Tags

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