Trend Breaks and First Retests of Imbalance Supply and Demand Zones

Summary

The strategy tracks recent pivot highs and lows, changing its directional state when price closes beyond the latest relevant pivot. It defines an imbalance candle as one whose body exceeds a specified share of its full range. A bullish candle creates a demand zone between its low and open; a bearish candle creates a supply zone between its open and high. The strategy waits for price to return to a zone for the first time and enters only when that retest agrees with the current trend state.

Entries receive percentage-based stop and target orders, and the chart marks trend changes, imbalance candles, zones, and trade signals. The document includes code and a promotional performance range, but no test period, asset-by-asset results, costs, or validation method to support that claim. Pivot confirmation and order processing assumptions may affect signal timing, and the rules are supplied without evidence that the approach generalizes across markets or timeframes.

Key ideas

• The trend state changes when price closes beyond a recent pivot high or low.
• Large directional candle bodies establish supply or demand zones.
• Entries require a first return to a zone in the direction of the current trend state.
• Percentage-based stop and target levels are calculated from the average entry price.
• The stated win-rate range lacks supporting test details or independent validation.

Tags

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