Mastering S&D RSI zones with Profectus.AI
This guide walks you through the Supply & Demand RSI 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 trading relies on visible price action — impulsive moves, breakouts, and structural shifts — to identify areas where supply or demand entered the market. While effective, this approach reacts after price has already revealed its hand.
An alternative approach is to focus on market sentiment before structure becomes obvious.
By using the Relative Strength Index (RSI) as a sentiment filter, we can identify moments where price becomes overextended, and then objectively confirm when control shifts from sellers to buyers. This allows us to define new Demand zones based not only on price behavior, but on internal market pressure.
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 19 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 RSI zone is identified by:
3 consecutive candles showing a <30 RSI
Identify a bullish trend shift with 2 bullish engulfing impulse candles
The last imbalance candle before the bullish trend shift is the base of the zone
To automate the Demand RSI zone, you need mechanical rules for all of the elements. To identify a Demand RSI zone, we implemented the following rules in our EA:
Identifying the bearish overextension. Using the Run per candle block, we first look to see if we have an overextension of the bearish trend by identifying 3 consecutive candles with RSI values below the threshold (<30 in this case).
Defining a bullish trend shift. If there is bearish overextension, we will look for a shift in trend by spotting 2 bullish engulfing candles. Bullish CID 1 needs to close above the highs of CID 2 and CID 3 to confirm an impulsive move.
Store & Reset the Demand RSI zone price levels. Once the criteria from step 2 have been met, the demand zone is stored on the imbalance candle before the bullish trend shift. 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 RSI zone looks like on a chart to help you better understand the rules.
This concept is only slightly more advanced than standard S&D zones, but it’s a very interesting concept to test for yourself.
These characteristics make the Demand RSI 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 RSI zone component in your own strategies
EXPORT and see the differences.
Add Supply RSI 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 RSI zones concept
EXPORT and see the differences.
Conclusion
Supply & Demand RSI 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.
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Templates are for educational purposes only.
Now it's your turn—apply the template, tweak the logic, and make it yours. 🚀