Zone Flow S/R Strategy by Awab_Hassan

By Awab_Hassan

Performance Metrics

Description

📌 Strategy OverviewThe Zone Flow S/R Strategy is a comprehensive support/resistance trading system that combines pivot zones, candlestick patterns (engulfing and pin bars), and multiple confirmation filters to generate high-probability entries.Unique features: - 9-level zone system derived from pivot points (R4–R1, P, S1–S4) - Gap‑based state machine that tracks which gap between zones price occupies – not just whether it's inside a zone - Pin bar sweep + engulfing combo that overrides EMA confirmation - Flexible zone width modes (Percentage, ATR Multiplier, Fixed) - Multiple pivot calculation methods (Classic, Fibonacci, Woodie, Camarilla, DM) - Zone selection – enable/disable individual zones - Partial TP & breakeven management - Advanced risk controls (trade counter, no-trade window, session close)Zone CalculationThe strategy calculates 9 zones using a modified pivot point formula from the selected period (Daily, Weekly, Monthly, Quarterly, Yearly):Base Pivot (P) = (Previous High + Previous Low + Previous Close) / 3From this, the strategy derives: - 4 Resistance Zones (R4, R3, R2, R1) – above the pivot - 1 Pivot Zone (P) - 4 Support Zones (S1, S2, S3, S4) – below the pivotEach zone is expanded by a Zone Width to create a buffer, making the levels more practical.Zone Width CalculationThree modes: - Percentage – zone width as a percentage of current price (default: 0.12%) - ATR Multiplier – width = ATR × Multiplier (default: 0.053 × ATR(14)) - Fixed – fixed price distance (default: 5.5 units)Pivot Calculation Methods 1. Classic – (H+L+C)/3 with standard levels 2. Fibonacci – uses ratios 0.382, 0.618, 1.0, 1.618 3. Woodie – (H+L+2C)/4 with modified levels 4. Camarilla – uses closing price × range multipliers 5. DM – conditional formula based on close vs open# Gap Index Mapping (0–9): Gap 0 – Above R4 → Aggressive (no trades) Gap 1 – Between R4 and R3 → Bearish near R4, Bullish near R3 Gap 2 – Between R3 and R2 → Bearish near R3, Bullish near R2 Gap 3 – Between R2 and R1 → Bearish near R2, Bullish near R1 Gap 4 – Between R1 and Pivot → Bearish near R1, Bullish near Pivot Gap 5 – Between Pivot and S1 → Bearish near Pivot, Bullish near S1 Gap 6 – Between S1 and S2 → Bearish near S1, Bullish near S2 Gap 7 – Between S2 and S3 → Bearish near S2, Bullish near S3 Gap 8 – Between S3 and S4 → Bearish near S3, Bullish near S4 Gap 9 – Below S4 → Aggressive (no trades)Market Status Displayed: - Bullish – near support zones; long trades allowed - Bearish – near resistance zones; short trades allowed - Waiting – new period started; zones recalculating; no trades - Aggressive – above R4 or below S4; no trades - Zone disabled – manually disabled zone; no trades # Entry Signals 1. Engulfing Patterns Detects bullish and bearish engulfing with filters: - Body Only – if true, only bodies must engulf (not full range) - Min/Max Range – can be Percentage, ATR Multiplier, or Fixed (defaults: 0.112%–0.55%, 0.375×–2.5× ATR, or 3.8–25 units) - Gap Allowance – max price gap between previous close and current open (default: 10ticks) - Previous or Prior Candle – at least one of the last two candles must be the opposite colour (bearish for bullish engulf; bullish for bearish engulf) 2. Pin Bar Patterns Identifies hammers/shooting stars with: - Wick/Body Ratio (default: 3.0) - Max Body/Range (default: 0.20) - Min Wick/Range (default: 0.70) - Sweep Lookback – bullish pinbar must break the lowest low of the previous N bars; bearish must break the highest high (default: 15 bars) 3. Pin Bar + Engulfing Combo (EMA Override)When a valid pin bar is immediately followed by an engulfing pattern in the same direction, this combo overrides the current timeframe EMA confirmation filter – capturing strong momentum.Combined Entry RequirementsAll of the following must be true: 1. Valid engulfing or pin+engulf combo 2. Pattern occurs near a zone (within zone boundaries or crossing it) 3. Market status aligns with trade direction 4. Daily trade limit not exceeded (default: 2) 5. Relevant zone is enabled 6. Price is on the correct side of EMAs (unless overridden by combo) 7. HTF EMA confirms (if enabled) 8. RSI not overbought/oversold (if enabled) 9. Sufficient volatility (Bollinger Bands filter, if enabled)10. Not within the no‑trade window (if enabled)# Confirmation Filters1- EMA Confirmation - Lower TF EMA – length 21 (configurable) - Higher TF EMA – length 150 on selected higher timeframe (e.g., 1H) - Longs require price > EMA; shorts require price 70, prevents shorts when RSI 15m: resets once per day at session start (Every new day) 5- No‑Trade Window: - Avoids high‑volatility periods (e.g., end of day) - Active only for TF ≤ 15m (default: 16:00 PM – 18:30 PM NY time, configurable) 6- Session Close: - TF ≤ 15m: can close at day end and/or week end (configurable) - 15m 10h: feature disabled# Chart Display - Zone boxes – semi‑transparent red/pink with labels (R4…S4), auto‑cleanup (max 55 periods) - Trade management lines – entry (white), SL (red), TP (green), TP1/breakeven (dashed), with green/red fills; auto‑cleanup (max 125 trades) - Info table (top‑right) – shows Market Status, EMA confirmations, Zone Width, Breakout threshold, Engulf range, SL settings - EMA plots – light blue (lower TF) and light red (higher TF) - Signal shapes – hidden by default (can be enabled via style settings) - Background colors – white at trade counter resets, yellow/green during no‑trade window# Optimised for XAUUSD (Gold) - The default settings have been specifically calibrated for XAUUSD based on its unique characteristics: - Gold's Volatility Profile: 1. Gold exhibits moderate to high volatility, often moving 20–50+ dollars per day 2. ATR-based zone width (0.053× ATR) adapts to these daily fluctuations 3. Engulfing range of 0.375–2.5× ATR captures meaningful price moves - Why These Settings Work for Gold: 1. Daily Pivot Period – Gold respects daily highs/lows as key structural levels 2. ATR Multiplier Zone Width – adapts to gold's varying volatility (often $4–10 range) 3. 1.5% Risk per Trade – balances gold's volatility with conservative risk management 4. 1:3 Risk:Reward – compensates for gold's occasional false breakouts 5. Pin Bar Sweep 15 – identifies genuine reversals at support/resistance 6. HTF EMA 150 on 1H – filters out counter-trend moves in the daily trendBroker Variables: Execution quality, spreads, commissions, slippage, and latency vary between brokers and can significantly impact the real-world performance of any strategy.If you have any questions about how the strategy works, suggestions for improvements, or ideas for new features, feel free to Leave a comment below, Send me a direct message on TradingView. Your feedback helps me improve and refine my work. Happy trading! 🚀Author: Awab_HassanRelease NotesX

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