Supply-Demand Zone Midline Reversals with SMA Trend and Candle Signals

Summary

This short-term strategy combines rolling supply and demand levels with a midpoint reference and an SMA trend filter. It defines the zones from the highest high and lowest low over a configurable lookback, then calculates their midpoint. A long setup requires price above the SMA but below the midpoint, together with a bullish candle pattern; a short setup mirrors those conditions below the SMA and above the midpoint. Profit targets and stops are placed at the opposing and corresponding zone levels, respectively, with zone values captured when a trade opens.

The document describes a five-minute approach and gives default lookbacks of 50 bars for zones and 20 for the trend SMA. Its published backtest metadata instead specifies one-minute bars for a one-week SOL/USDT spot sample, and no performance statistics are supplied. The write-up identifies false signals, parameter sensitivity, slippage, and overtrading as risks. It suggests testing volume or volatility filters and adding position sizing, but these are proposed improvements rather than validated features.

Key ideas

• Rolling highs and lows define supply and demand levels, whose midpoint serves as a price reference.
• The SMA sets directional context for reversal entries around the midpoint.
• Bullish or bearish candle conditions provide additional entry confirmation.
• Zone levels at entry become the respective trade's take-profit and stop-loss references.
• The document offers no reported performance metrics, and its timeframe descriptions are inconsistent.

Tags

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