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Once a month, we're hosting a webinar for Profectus members in which we share a strategy relating to that month's topic. In this February 2026 edition we're sharing a unique Supply & Demand Strategy created on Profectus.
In this blog I want to give a better insight into the idea and workings of the stratey. If you want to watch the recording of the complete live webinar, check it out here!
Let's get started!
Traditional Demand zones are drawn purely from price action — typically where price departed aggressively from a level.
RSI Demand zones introduce an additional dimension:
Sentiment and statistical exhaustion.
Instead of assuming a level is important because price moved away from it, the RSI Demand methodology asks:
Has the market pushed far enough in one direction to justify a reversal?
By requiring multiple closes below a predefined RSI threshold, the strategy identifies moments where:
This approach does not replace price action — it refines it.
Before you move on, you might want get a refresher from the introductory Supply & Demand Zone article here.
The idea for this strategy was to create a multi-timeframe focussed automated trading bot for MT5.
While the RSI Demand zone identifies where demand entered, the strategy still requires a precise entry trigger.
This comes from a bullish engulfing candlestick pattern on a lower timeframe.
A valid bullish engulfing entry should:
The engulfing pattern confirms that buyers are actively defending the zone, not just slowing the decline.
This strategy operates across timeframes:
Defines the RSI Demand zone and swing context.
Provides precise entries using bullish engulfing patterns.
This separation allows traders to:
These characteristics make this iteration of the Demand zone unique but also very mechanical to create and test.
How do we define an impulsive move?
To automate this Demand zone, you need mechanical rules for all of the elements. To identify a Bullish Impulsive move, we implemented the following rules in our Expert Advisor:
The screenshot above shows the candle ID numbers to help you understand better what these rules actually look like.
With Profectus, you can transform the Supply & Demand Zones concept into a fully automated module without writing code.
The creation of this trading bot can be split up in 3 sections:
The foundation of the strategy is detecting when price has become overextended to the downside. However, An overextended market alone does not guarantee a reversal. Trends can persist longer than expected. Therefore, the next requirement is a clear shift in momentum.
To qualify as an RSI Demand environment:
If the RSI move is confirmed, you can run the blocks to find the impulsive move and the imbalance candle to actually draw the Demand zone:
Once the zone has been identified and stored, you wait for the low of any candlestick that follows to touch the demand zone high. While the RSI Demand zone identifies where demand entered, the strategy still requires a precise entry trigger.
This comes from a bullish engulfing candlestick pattern on a lower timeframe after the demand zone has been retested:
If the price retested the demand zone, you want to start looking at the invalidation criteria to discard the zone. The criteria is:
After step 3, all the values are reset back to their default settings and your expert advisor can start looking for new fresh demand zones and repeat steps 1 to 3.
Markets do not reverse randomly. They transition.
By combining:
This strategy captures the moment when selling pressure fades and buying interest begins to dominate.
It is not designed to catch every reversal.
It is designed to identify high-quality transitions.
For swing traders seeking a structured, repeatable framework, RSI Demand zones with engulfing entries offer a compelling balance between statistical context and price-based execution.
The template for the strategy that we just described in this article was exclusively shared with Profectus members who attended the live webinar.
However, we invite you to create this strategy on your own using the information from the webinar recording and this article.
You can also find a wide selection of pre-built strategies in our extensive and ever-growing Trading Bot Library here!
If you're interested in another detailed Supply & Demand zone article, check out the introductory Supply & Demand Zone article here.
Happy building!
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