Supply and Demand Expert Advisor - page 4

[Sergey Golubev]

Forum on trading, automated trading systems and testing trading strategies

Supply & Demand

Sergey Golubev, 2026.01.31 06:15

From Novice to Expert: Statistical Validation of Supply and Demand Zones

The analysis of supply and demand zones represents a cornerstone of price action trading, rooted in the timeless economic principle of market imbalance. For the discretionary trader, these zones are identified through visual pattern recognition—a skill honed by experience. However, this reliance on subjective judgment creates a significant reproducibility challenge, forming the primary barrier to effective automation. While the theoretical logic of these zones is well-established, its translation into precise, computational rules remains elusive, often defaulting to arbitrary numerical thresholds.