Pentagon AnalyticsSMC ZONES · DZ-3.0
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demand & supply zones, levels and setup.

🔔 2H Zone Alerts

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📖 How to Trade — Quick Reference

Timeframe Entry Rules

1DSWING Weekly bias, enter at daily demand. Target 3–8% over days/weeks. Tight SL below zone bottom.
2HINTRA Needs daily confluence. Entry on Stage 2 candle. Target 1.5–3% intraday or overnight.
1HINTRA Needs daily or 2H confluence. Faster entry, smaller position. Target 1–2%.
3MSCALP Scalp only. Use only when 2H/1H confluence confirmed. Target 0.3–0.8%, tight SL.

🎯Zone Entry Checklist

1.Zone has CONFLUENCE — overlaps a higher-TF zone, same bias
2.Zone is FRESH — not tested before, or tested ≤ 2×
3.Strong leg-out from zone (sharp candle away = strong origin)
4.Stage 1 candle closes inside the zone (red for demand, green for supply)
5.Stage 2 confirms — next candle closes above S1 high (demand) or below S1 low (supply)
6.Enter at Stage 2 close. SL = below zone bottom (demand) / above zone top (supply)

📶3-Stage Alert Action Plan

Stage 1 — Setup
Price enters zone. Watch only. Do NOT enter yet. Wait for confirmation.
Stage 2 — Entry ✓
Confirming candle closes beyond S1 extreme. Enter here. Place SL immediately.
Stage 3 — Retest
Price pulls back to test S1 extreme. Optional add or hold if SL not hit.
SL Rule
Below zone bottom (demand) or above zone top (supply). Max 1.5× zone height.

Pentagon Score Guide (0–7)

Freshness — Fresh=3, Tested≤2=1.5, Tested>2=0
Leg-out strength — Strong candle away from zone (0–2 pts)
Base candles — Tight consolidation before move (0–2 pts)
T1Score ≥ 5 — High priority. Best risk:reward. Full size.
T2Score 3–4 — Watch closely. Reduce size, confirm with stage alerts.
T3Score < 3 — Avoid or paper-trade only. Low probability.

VCP Breakout Checklist

1.2–4 pullbacks, each ≤ 90% depth of the prior — confirms tightening
2.ATR ratio < 0.65 = squeeze — volatility compressed, spring-loaded
3.Stage = BREAKOUT — current price above pivot high
4.Bonus: pivot high ± 3% of a demand zone (VCP+D) — double confluence
5.Enter on breakout candle close above pivot high. SL = below last pullback low
6.Target 1: prior swing high. Target 2: 1.5–2× the VCP base width

🔗Confluence Quick Reference

★★2H zone overlaps Daily — strongest, swing + intraday aligned
1H zone overlaps Daily or 2H — good for intraday entries
3M zone overlaps any higher TF — scalp only with tight SL
No confluence = no trade. Skip single-TF zones entirely.

Risk Rules

SizeRisk max 1–2% of capital per trade regardless of score
SLAlways set before entry. No SL = no trade.
DailyMax 3 open positions. Stop trading after 2 consecutive losses.
ZonesAvoid zones tested ≥ 3× (strength weak). High-probability = tested < 2×.
3M3M scalps: flat overnight. Close before market close.