//@version=5
strategy("The BEST Day Trading Strategy For Beginners in 2026", overlay=true, initial_capital=10000, default_qty_type=strategy.percent_of_equity, default_qty_value=10)

// --- Inputs ---
htf_period = input.timeframe("240", title="HTF Period (Structure Filter)")
fast_ema_len = input.int(50, title="HTF Fast EMA Length")
slow_ema_len = input.int(200, title="HTF Slow EMA Length")
atr_len = input.int(14, title="ATR Length for Level Identification")
atr_mult = input.float(1.5, title="Displacement ATR Multiplier")
stoch_k_len = input.int(14, title="Stochastic K Length")
stoch_d_len = input.int(3, title="Stochastic D Length")
stoch_smooth = input.int(3, title="Stochastic Smooth")
stoch_ob = input.float(80.0, title="Stochastic Overbought Level")
stoch_os = input.float(20.0, title="Stochastic Oversold Level")
rr_ratio = input.float(2.0, title="Risk-to-Reward Ratio")

// --- High Timeframe Market Structure (S) ---
htf_fast = request.security(syminfo.tickerid, htf_period, ta.ema(close, fast_ema_len), barmerge.gaps_off, barmerge.lookahead_off)
htf_slow = request.security(syminfo.tickerid, htf_period, ta.ema(close, slow_ema_len), barmerge.gaps_off, barmerge.lookahead_off)

is_bullish_structure = htf_fast > htf_slow
is_bearish_structure = htf_fast < htf_slow

// --- Supply and Demand Levels Identification (L) ---
atr = ta.atr(atr_len)
var float demand_high = na
var float demand_low = na
var float supply_high = na
var float supply_low = na

body = close - open
is_strong_up = body > atr * atr_mult
is_strong_down = -body > atr * atr_mult

// Update levels dynamically when displacement is identified
if is_strong_up[1]
    demand_high := high[2]
    demand_low := low[2]

if is_strong_down[1]
    supply_high := high[2]
    supply_low := low[2]

// --- Confirmation Logic (C) ---
stoch_raw = ta.stoch(close, high, low, stoch_k_len)
stoch_k = ta.sma(stoch_raw, stoch_smooth)

in_demand_zone = (low <= demand_high and high >= demand_low)
in_supply_zone = (high >= supply_low and low <= supply_high)

stoch_cross_over = ta.crossover(stoch_k, stoch_os)
stoch_cross_under = ta.crossunder(stoch_k, stoch_ob)

long_condition = is_bullish_structure and in_demand_zone and stoch_cross_over
short_condition = is_bearish_structure and in_supply_zone and stoch_cross_under

// --- Trade Execution and Management ---
var float trade_sl = na
var float trade_tp = na

if long_condition and strategy.position_size == 0
    trade_sl := demand_low - (atr * 0.5)
    trade_tp := close + (close - (demand_low - (atr * 0.5))) * rr_ratio
    strategy.entry("Long Setup", strategy.long)
    strategy.exit("Exit Long", "Long Setup", stop=trade_sl, limit=trade_tp)

if short_condition and strategy.position_size == 0
    trade_sl := supply_high + (atr * 0.5)
    trade_tp := close - ((supply_high + (atr * 0.5)) - close) * rr_ratio
    strategy.entry("Short Setup", strategy.short)
    strategy.exit("Exit Short", "Short Setup", stop=trade_sl, limit=trade_tp)

// --- Visualizing Supply/Demand Levels ---
plot(demand_high, "Demand High", color=color.new(color.green, 50), style=plot.style_line)
plot(demand_low, "Demand Low", color=color.new(color.green, 70), style=plot.style_line)
plot(supply_high, "Supply High", color=color.new(color.red, 50), style=plot.style_line)
plot(supply_low, "Supply Low", color=color.new(color.red, 70), style=plot.style_line)