Supply and Demand

GBPUSD Demand & Supply EA
1. Trend Direction

1H timeframe
50 EMA and 200 EMA
BUY bias: 50 EMA above 200 EMA
SELL bias: 50 EMA below 200 EMA

2. Demand & Supply Zones

Identify strong moves away from a base
Prefer fresh zones
Avoid zones that have already been repeatedly tested

3. Trendlines

Use ascending trendlines to support BUY setups
Use descending trendlines to support SELL setups
Trendline must support the overall market direction

4. Liquidity

Identify liquidity around swing highs and lows
Look for liquidity sweeps/grabs before confirmation where applicable

5. Rejection Candles

Minimum 2 rejection candles at the zone
BUY: rejection showing buyers defending demand
SELL: rejection showing sellers defending supply

6. BOS / CHOCH

BUY: bullish structure break with a candle closing above the relevant swing high
SELL: bearish structure break with a candle closing below the relevant swing low

7. Continuation

Confirm price continues in the expected direction after the BOS
Avoid entering on a weak or false break

8. Entry

BUY:

Uptrend → demand → liquidity reaction → 2+ rejections → bullish BOS → bullish continuation → BUY

SELL:

Downtrend → supply → liquidity reaction → 2+ rejections → bearish BOS → bearish continuation → SELL

9. Stop Loss

SL placed beyond the zone
5–8 pip buffer
Adjustable in the EA settings

10. Risk Management

Fixed risk: $3 per trade
Automatic lot-size calculation
Lot size adjusts according to SL distance

11. Take Profit

1:2 risk-to-reward
If risk is $3, target profit is approximately $6 before trading costs.

12. Trading Sessions

We can add a session filter so the EA trades only during the most active periods.

13. Spread Protection

The EA will not trade if the GBPUSD spread is too high.

14. Maximum Trades

We should limit the number of trades to prevent overtrading.

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