RSI & MACD + D/S Zones

kelmarin

Overview
This strategy is a hybrid trading system that combines Institutional Supply & Demand concepts with a strict Momentum Validation Engine.

Supply & Demand indicators trigger signals the moment price touches a zone, often leading to "catching a falling knife." This script solves that problem by decoupling the "Zone Hit" from the "Trade Entry." It identifies key market structures first but only triggers a trade when momentum (MACD + RSI) explicitly confirms a reversal in the direction of the dominant trend.

How It Works

1. The Map: Supply & Demand Zones
The script automatically identifies zones based on the "Boring Candle + Explosive Move" pattern.

Creation: A zone is formed when a low-volatility "Boring Candle" (base) is followed by a high-volatility "Explosive Candle" (breakout).
Consumption: Zones are dynamic. If price wicks into a zone, the zone "shrinks" to reflect consumed orders. If price breaks through completely, the zone is removed.
Visuals:
Demand Zones: Faint Green (20% Opacity).
Supply Zones: Faint Red (20% Opacity).
"HIT" Labels: clearly identify when price tests a zone (Green for Demand, Orange for Supply).

2. The Filter: Trend & Safety
200 EMA (Red Line): Acts as the hard trend filter.
Longs are only taken above the Red Line.
Shorts are only taken below the Red Line.

RSI "Safe Zone" (35–65): The script filters out trades where RSI is overbought (>65) or oversold (<35), ensuring entries have room to run.

3. The Trigger: 2-Bar Momentum Confirmation
A trade is NOT taken just because a zone is hit. The script waits for a confirmed momentum shift:

MACD Logic: It requires two consecutive bars of expanding histogram momentum (e.g., for a Long, the histogram must be Green and rising for 2 bars).
Signal Decoupling: The "Buy" or "Sell" signal may appear 1-3 bars after the zone hit, ensuring the bounce is real.

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Visual Guide

* 🔵 Buy Label (Sky Blue): A confirmed Long entry (Trend Up + RSI Safe + Momentum Rising).
* 🟣 Sell Label (Hot Pink): A confirmed Short entry (Trend Down + RSI Safe + momentum falling).
* 🔴 Red Line: The 200 EMA Trend Filter.
* 🟢 Green "Hit Demand": Price has touched a valid Demand Zone.
* 🟠 Orange "Hit Supply": Price has touched a valid Supply Zone.

Settings & Inputs
Zone Settings: Adjust `Boring Candle %` to filter which bases are detected.
Strategy Settings:
`EMA Trend Filter`: Defaults to 200.
`RSI Min/Max`: Defaults to 35/65 to avoid extremes.

Risk Disclaimer
This script is a technical analysis tool. Past performance does not guarantee future results. Always use proper risk management and stop losses when trading real capital.

kelmarin

Nota Keluaran

Overview
This strategy is a hybrid trading system that combines Institutional Supply & Demand concepts with a strict Momentum Validation Engine.

Supply & Demand indicators trigger signals the moment price touches a zone, often leading to "catching a falling knife." This script solves that problem by decoupling the "Zone Hit" from the "Trade Entry." It identifies key market structures first but only triggers a trade when momentum (MACD + RSI) explicitly confirms a reversal in the direction of the dominant trend.

How It Works

1. The Map: Supply & Demand Zones
The script automatically identifies zones based on the "Boring Candle + Explosive Move" pattern.

Creation: A zone is formed when a low-volatility "Boring Candle" (base) is followed by a high-volatility "Explosive Candle" (breakout).
Consumption: Zones are dynamic. If price wicks into a zone, the zone "shrinks" to reflect consumed orders. If price breaks through completely, the zone is removed.
Visuals:
Demand Zones: Faint Green (20% Opacity).
Supply Zones: Faint Red (20% Opacity).
"HIT" Labels: clearly identify when price tests a zone (Green for Demand, Orange for Supply).

2. The Filter: Trend & Safety
200 EMA (Red Line): Acts as the hard trend filter.
Longs are only taken above the Red Line.
Shorts are only taken below the Red Line.

RSI "Safe Zone" (35–65): The script filters out trades where RSI is overbought (>65) or oversold (<35), ensuring entries have room to run.

3. The Trigger: 2-Bar Momentum Confirmation
A trade is NOT taken just because a zone is hit. The script waits for a confirmed momentum shift:

MACD Logic: It requires two consecutive bars of expanding histogram momentum (e.g., for a Long, the histogram must be Green and rising for 2 bars).
Signal Decoupling: The "Buy" or "Sell" signal may appear 1-3 bars after the zone hit, ensuring the bounce is real.

---
Visual Guide

* 🔵 Buy Label (Sky Blue): A confirmed Long entry (Trend Up + RSI Safe + Momentum Rising).
* 🟣 Sell Label (Hot Pink): A confirmed Short entry (Trend Down + RSI Safe + momentum falling).
* 🔴 Red Line: The 200 EMA Trend Filter.
* 🟢 Green "Hit Demand": Price has touched a valid Demand Zone.
* 🟠 Orange "Hit Supply": Price has touched a valid Supply Zone.

Settings & Inputs
Zone Settings: Adjust `Boring Candle %` to filter which bases are detected.
Strategy Settings:
`EMA Trend Filter`: Defaults to 200.
`RSI Min/Max`: Defaults to 35/65 to avoid extremes.

Risk Disclaimer
This script is a technical analysis tool. Past performance does not guarantee future results. Always use proper risk management and stop losses when trading real capital.