Mastering S&D EMA zones with Profectus.AI
This guide walks you through the Supply & Demand EMA zones concept. This is a variation of the basic S&D zones and can be built easily in Profectus AI.
For the basic and full Supply & Demand zones explanation, please read this article!
Traditional Supply & Demand zone trading focuses on identifying strong impulsive moves away from price levels. While effective and fully automated, this approach often leaves room for interpretation — especially when defining whether a trend has truly ended or merely paused.
To remove this ambiguity, we can introduce the Exponential Moving Average (EMA) as a trend filter and structural confirmation tool.
Rather than using the EMA as a trade signal, we use it to objectively define when market conditions have shifted, allowing us to draw new Demand zones only after a confirmed break in trend. When price breaks above the EMA, we can consider a change of trend and look for the Demand zone that was responsible for this break and change.
Step 0: Access the Strategy Concept Template [1 Min]
Click the button to load the trading bot directly onto your canvas:
Your canvas should display 17 blocks. Check? Let's continue!
Step 1: Export the Trading Bot [1 Min]
Before diving into customization, export the bot with the upper-right export button to download the file.
Step 2: Upload to MetaTrader 5 [4 Min]
Don’t know how? Refer to our help article "Exporting Your First Strategy".
Step 3: Understand the Logic [1 Min]
Structurally, a Demand EMA zone is identified by:
A clear break above the 50-period EMA
Identify the last imbalance candle before the break of the EMA
The last imbalance candle before the EMA break is not touching the EMA
To automate the Demand EMA zone, you need mechanical rules for all of the elements. To identify a Demand EMA zone, we implemented the following rules in our EA:
Identifying the trend change. Using the Run per candle block, we first look to see if we have a break of the EMA. A candle needs to close above the EMA, and the candle's low cannot touch the EMA to confirm the trend change.
Defining the EMA Demand zone using a loop. We are now introducing a concept used to build more advanced algorithms in Profectus: Loops. A loop is a structure that iterates through all previously formed candles until a certain condition has been met. It can do this in one go using the run per candle block. This particular loop looks for the current candle's close that is still above the EMA and will search for the first imbalance candle in the past that closed below the EMA.
Store & Reset the Demand EMA zone price levels. Once the criteria from step 2 have been met, the demand zone is stored on the imbalance candle using a variable. Now the EA remembers where this demand zone is located, and it can reset the zone once the bullish trend is no longer in place.
The screenshot below shows what a valid Demand EMA zone looks like on a chart to help you better understand the rules.
This concept is a bit more complex than the standard S&D zones, but the added EMA element makes it worthwhile to test.
These characteristics make the Demand EMA zones objective zones of interest rather than subjective trade entries.
Step 4: Make It Your Own [10 Min]
You can adjust and experiment:
Add more strategy rules or include the Demand EMA zone component in your own strategies
EXPORT and see the differences.
Add Supply EMA zones to take advantage of selling opportunities as well
EXPORT and see the differences
Play around with timeframes and assets
EXPORT and see the differences.
Refine the rules to fit your own interpretation of the S&D EMA zones concept
EXPORT and see the differences.
Conclusion
Supply & Demand EMA zones are a unique variation of the popular ICT or Smart Money component: simple rules and universal application. Now it’s your turn — backtest it, tweak it, and evolve it into your own winning system.
👉 Try the PRO version today
Templates are for educational purposes only.
Now it's your turn—apply the template, tweak the logic, and make it yours. 🚀