Skip to main content
Loading Explore guides…
Supply & Demand Zones Trading · Acedra
Home
Explore
Business
Supply & Demand Zones Trading
Sign in to save
Chat
If YouTube asks you to sign in, open the video on YouTube.
Watch on YouTube
Reload player
Transcript
267 segments
Copy
Hide video
0:00
in this video we will be breaking down the supply and demand Zone trading strategy step by step so that you can be on your way to becoming a profitable Trader this is the strategy I've been trading for the past 5 years with great success and other traders in my Discord group have also found success with this strategy as well and one of the best things about supply and demand Zone trading is that it doesn't matter you know what type of Market you are trading whether
0:23
it's stocks Forex or futures or whatever supply and demand Zone trading works on any market and any time frame whether you are a day trader or a swing Trader in this video we will be learning what is and what is not a supply and demand Zone common Miss conceptions there's a ton of them and I can't wait to get into that uh the logic behind a supply and demand zone why it actually makes
0:44
sense the types of zones we have Peaks and valleys continuation patterns that's also very important the structure of a Zone what makes up a supply and demand Zone we have how to enter a Zone where with our entry stop-loss and take profit and also how to place an order specifically on trading view you guys are going to love that also how to draw a Zone very important we are drawing the zones
1:04
the correct way which time frames should you trade that's all based off of your schedule uh multiple time frame analysis which is key to trading supply and demand especially for getting larger profits how how do we qualify as own you know using confirmation and things like that also the supply and demand trading strategies for confirmation and for set and for get trading as well and we
1:27
also go over some odds boosters where where we're looking at the strength of the movement even even liquidity trap setups as well and at the end we do touch on trading psychology like realistic trading expect expectations so there's a lot to learn in this video I think you guys will love it as always if you guys do like this video make sure to hit that like button and subscribe if you are
1:47
new new to the channel I do weekly Forex forecast every week on YouTube on Saturday at 3:30 a.m. so make sure you subscribe for those Forex forecasts so the first thing that I want to talk about in this full supply and demand Trading course is I want to clear up what is not a supply and demand zone now unfortunately supply and demand trading kind of has been changed over the last couple of
2:06
years due to people coming on YouTube and trying to be original change it up to what their own version of Supply demand is and that's all fine and dandy but what I try to go over in this PDF and in this video is the pretty much the original supply and demand trading methodology obviously it's it's some things that I've learned in the past 5 years are included in here as well so it's basically everything I've learned in the past 5 years if you guys do want this PDF file copy uh
2:31
just join the membership it is available there but supply and demand is not just the highs and lows of price that is the most common misconception and and it's it's not can supply demand be at a high and a low yes it can be but it's not every high and low and that's resembled right here right this is an image I got on Google where uh this is just mapping out the highs and the low right they're saying the supplies on here and the demands on here and it does make sense
2:55
right obviously if price pushes up and then we drop obviously Supply and sell took control here if price pushes up obviously buyers took control here as well I agree with that sentiment I I agree with the general thing but a true Zone a true demand Zone and Supply Zone which we're going to learn in this whole video and on this PDF it is different it is not just the highs and lows that
3:15
is the that is first things first in a valid Zone we must have a strong imbalance uh right so price must move away aggressively we are not looking for any hesitation so we are basically looking for basing in a massive move up for demand and then basing in a massive drop down doesn't have to be massive right but basically we are looking looking at a real price chart we are looking for moves like this for demand we are looking for moves like this for Supply right we are looking
3:42
for those the basing and those strong moves that is the first thing that your eyes should be should be going to when learning how to trade supply and demand right we are looking for those moves down and those strong moves up we are not looking for hesitation like this if you see this is what I'm talking about price pushed down we push we pushed above so people would come in here the majority of
4:00
retail traders that are tra that are quote unquote trading quote unquote supply and demand they will say this is demand why because yeah I get it right price push down we pushed up obviously buyers took control here however there's no strong imbalance here did we go up candle after candle green candle after green candle yes but there's no strong move up here it is just a stair stepping very
4:22
hesitation move up what we are looking for we are looking for strong moves up here's a great example right here the basing and then look look at this move up it is strong it is not hesitation like we have right here look at the difference between this move up and this move up this is one candle this is multiple candles that are just steadily going up yes they are green but they're not great
4:44
and then another common misconception and this is another picture that I pulled up off of Google um is we do not cut through we do not cut through candles when we are mapping other supply and demand zones that is support and resistance and it all goes back to people thinking supply and demand is support and resistance it's just another term it actually is not uh with support and resistance
5:04
we are looking for multiple touches with supply and demand we like to trade the first touch in and it just goes to show you that this is pretty much a support and resistance here um they're again they're just kind of mapping out the highs and the lows and then they're cutting through candles saying Supply becomes demand that's not the original methodology that is not what we are doing here and that is not what we will be learning we will be learning the real methodology for supply
5:25
and demand trading that has that I have found success in in trading the last five years I found plenty of success trading it it's worked for me um it's not the only trading strategy that you can trade profitably that is for sure I will never sit here and say it's the only trading strategy that's profitable at all but it's definitely a pretty good one in my opinion and so touching on the
5:44
support and resistance versus supply and demand topic again uh every Supply in a man Zone has two key elements right we have our basing and then our strong fast move away like we were just talking about this is what separates supply and demand zones from simple support and resistance levels so unlike support and resistance which focus on kind of just general price areas right we're just kind
6:03
of focusing on the general areas of where price turned around supply and demand zones we require a specific candle formation that you can see here to confirm the presence of an Institutional buying or selling pressure right you can see here on this example this is our supply Zone this is the supply Zone zoomed in we have our basing right here and then our strong move down just like we were talking about in the last slide that is right here and then you can see our resistance area
6:29
right before that supply and then we're going to talk about this is actually an odds booster right here when we have this setup beautiful setup here we're going to talk about that later so make sure you stay tuned for that but this is the difference here this is a general area of resistance where price came in and touched it several times I agree that's resistance but our supply Zone up
6:47
here it's fresh it never was touched until we took the trade here we actually almost got stopped out but it worked out anyways that is the difference general area versus a specific candle formation that is one of the things that is one of the most common misconceptions you know when trading supply and demand the difference and hopefully this video can clear it up and just this specific slide can clear it up right we are looking for these very very specific candle formations it is
7:13
not just general areas you actually have to zoom in on price to look at each individual candle like we did here to identify the basing and the move away it's very very important the next thing we're going to be talking about is the logic behind a supply and demand Zone and this is why the strategy makes logical sense remember guys if you guys have any questions at all about anything I'm
7:33
saying please leave me a comment I will respond to every single comment answering your question if I can now supply and demand zones are not created intentionally I want to make that very very clear however they do leave Footprints as in the banks and the institutions they do leave footprints on a price chart inadvertently meaning they're trading on a price chart and we actually can identify
7:55
their moves so again I want to I want to stress I can't Ed enough this is not done on purpose these zones form because only large players with millions of dollars can generate the explosive moves that Define a supply and demand and balance that is pretty much an objective fact a small player especially in the Forex Market me even if it was everyone watching this video all bought the
8:19
eurous dollar at one time we're not going to see a massive green candle like this it's just not going to happen the only ones that can make massive green candles like this with big imbalances is a either a bank or a large institution and we all know those are the ones who are making money in the Forex Market not us retail Traders obviously with this video and everything we're trying to get to be profitable as much as possible and I do believe this strategy is one of the best for
8:43
becoming profitable we want to be trading with the banks and the large institutions so there are two parts of a demand Zone we talked about it earlier the basing right and this begins when price is in equilibrium meaning buyers and sellers are balanced not complet completely balanced right if you see in this example here price is kind of ranging here we go up and down and back up here
9:04
it's pretty much in a in a Range supply and demand is not out of balance it is pretty much balanced in this range that is the first thing for a demand Zone and basing is all over the place right what we are looking for is the breakout out out of that basing which we're going to talk about in the next slide so that's the first part the formation of the basing the second part is the breakout of the
9:25
equilibrium of the basing the SEC and that's when buyers exhaust Sellers and and just a reminder guys everything I'm saying about this is all using demand a demand Zone it's the same thing applies for Supply it's just opposite so everything I'm saying for Supply is just the complete opposite I'm not going to explain both ways thanks for understanding um but anyways so that's the second part of the Zone When Buyers exhaust sellers meaning all the sell orders were filled and the
9:51
buy orders continued and that's why price push up there was no more sellers here and so price breaks out of the range shooting off in Direction and so that's this is pretty much phase one that's phase one of creating demand zone now we need both in order for there to be a Zone if you look on the next slide here um again what why does this the zone why does this strategy make logical sense
10:13
well this is the breakout of equilibrium for a demand Zone price ranges like we just talked about as buyers and sellers they battle for control this is a battle down here right think about uh two lines of this is defense and this is the attack they're battling and battling buyers and sellers are battling to see who can win sellers try to push price down and the buyers keep absorbing all
10:36
those sell orders and they absorbed so much that eventually they overpower them and that is where we get our breakout of the equilibrium that candle here but like I showed you at the beginning that is what we are looking for this is the footprint left on the chart by the large players because again we cannot make a move like this that is only the large players are there retail traders in this
10:58
candle absolutely right they are hopping on this move 100% the momentum Traders whatever but the only ones who can create that type of move is a large bank or a large institution I want to make that very clear and that is why the strategy makes logical sense it is pretty much objective nobody can sit here and tell me oh a couple retail traders made this move happen maybe on like a crappy penny stock or something not in the Forex markets not in the major markets so again this
11:24
is the footprint left in the chart by the large players showing where they took control right right footprints that is what we are looking for that is what a supply and demand zone is again if you guys can start to see the theme comparing it to support and resistance where we're just mapping out the general highs and lows this is much much different we are getting specific with the candle formations hopefully you guys can start to see that now so the third part why this basically
11:51
the the concept of supply and demand trading is the return to the Zone the unfilled orders so I'm going to do my best to explain this here um um so when price moves away so fast like this the logic behind why we buy the pullback right because we are not trying to predict this move a lot of you know new beginner Traders come in and they don't fully understand it and they think that you know
12:12
we're trying to predict this massive move and we're not we cannot predict that move I want to make that very clear we are not predicting that move what we are saying is if the banks and the large players found value in buying this down here so much that price pushed up the concept is that they have unfilled buy orders down here where we will be buying again with them that is the concept of supply and demand so let's say they had you know 100,000 orders right here price pushed up
12:39
maybe only 80,000 were filled and then they have 20,000 left at this level right here that is where we buy with them on the return that is kind of the concept there um and it's objective right it's like they are the ones that move this up so we are trying to get in on that second move where they have their leftover buyers buy orders and we want to and and they couldn't be filled before and
13:01
now we are we are identifying that's our Zone and that's why we buy as that's where we buy as supply and demand traders to kind of get along with the banks on that second move so hopefully that makes sense again any questions guys don't hesitate to ask so the two types of zones we are going to be looking for they're pretty much the only two zones we have are the the first one is the valley and
13:21
Peak the VPS and usually these are found at the tops and bottoms of price movements as you can see here this is a VP Zone where we pushed up here we base out then we dropped and then obviously for demand we pushed down base and then rallied so they're mostly found at the tops and bottom of price movements however you can find just for an example here if price let's say pushes up and then
13:44
we get some sort of small pullback and then a move up other than which we're going to talk about here is a CP like that we will get a small dip and that's where it could be found in the middle of the move it's not too typical but it is possible we do see that in the middle of the move but like I wrote here they're mostly and usually found at the tops and bottom of price movements they are
14:03
a strong reversal pattern right because price is trending down it's a reversal trade right and then this is actually often a reaction from a previous zone so there's a demand Zone here that I mapped out here it could have actually been a reaction off of a previous demand Zone from back here so that's something to consider as well and there are two types of formations the first one is they
14:23
drop base rally for demand this is for a volume Peak there are other ones but so this this is spe specifically for Val and Peak zones we have a drop base rally for demand that's this over here on the right figure two we dropped in price right then we based we had a single candle basing right here and then we rallied so that is our drop base rally for demand that is our Peak and Valley drop base rally
14:48
demand zone now obviously for Supply it is called a rally base drop for Supply over here figure one you can see we had a rally we based and then we dropped and notice something Guys these massive significant drops in price touching on it earlier there's no Supply here but there is Supply Here notice the difference I want you guys to start training your eye to start to identify those
15:11
big moves up and down in price which is which are supply and demand zones so these are the two types of Peaks and Valley zones for supply and demand now the opposite or not the opposite rather but the other one is Zone number two which is the continuation pattern zones these CPS these are personally my favorite I find these work better uh I don't really have any data on it it's pretty much just my been from my experience at the top of my head um and these are usually found in the
15:36
in the middle of Price Right like we talked about earlier this is something you will see you know let's say we push down here we base out we push up there's our Valiant Peak demand Zone A lot of times as we're pushing up we'll get a small base here and a push up right and that is our CP demand zone right and we're obviously buying the pullback on that so that is the difference there it's a rally base rally so for uh so first of all so they indicate a pause in momentum rather
16:01
than a reversal in price right it's just more of a pause rather than a complete reversal so and these are often found in single candle basins as you can see right here and single candle basins are one of my favorites I like either between one to three candle Bings they're usually pretty good um so figure one here this is our for Supply um this is our drop base drop right you can see price
16:23
dropped it's kind of cut out over here but it's dropped and then we based and then we drop dropped again so that is for supply and then for demand we have our rally base rally our rbr you can see here we pushed up rallied and we pushed up again these ones can with single candle basing can be hard to find again I can't stress enough the the the importance of looking for the strong moves
16:46
and then from there we are looking for our basing so that's the process when looking for supply and demand zones we are looking for the sharp move then we identify the basing next and actually both of these trades were called out before they took place in the daily Market breakdown videos if you want to trade alongside myself and the community join the diamond membership for exclusive access to our daily Market breakdown videos and catch trades like these plus dive
17:10
deep with our fulllength forecast covering 26 plus markets our interactive Sunday Zoom sessions and personal homework to sharpen your strategy and you'll also join our private Discord group for direct access to me and unlock a complete library of a toz video lessons to master supply and demand and trading don't miss out let's level up your trading links are in the description down below now we're going to be talking about the structure of a supply and demand Zone this is very very
17:37
important so each supply and demand Zone consists of two key levels the first one is our proximal line the second one is our distal line so the lower line for Supply is our proximal line and the upper line for demand is our proximal line so looking over here this is our supply zone right and you can see that the proximal line line is right here and the distal line is the one above a quick and easy way to remember this is the distal line is the furthest distance from where price is
18:07
at right so the distal forther the distance that's it's an easy way to remember and obviously the opposite for demand the proximal line is at the top and the distal line is at the bottom because price is up here the distal line is the furthest line from price it doesn't matter what you call it this is just what it has been called forever now um so that's what we call it and it's just a
18:25
you know it's it's a good reference to be knowing what to call it um and basically yeah the areaa between the dist line and the proximal line that represents our supply and demand zone right that is like our wiggle room right um we're going to talk about how to enter a trade coming up uh but the best zones remember the best zones show strong moves away confirming a significant imbalance so
18:48
that is our proximal line that is our distant line remember that um the main the main idea is that we just draw the Zone properly it does you don't have to label it that every time it's just the ter techology behind the demand in the supply Zone and then the second part is well first of all the basing is very important the basing areas where price consolidates before a strong move away and
19:10
I will say that the best bases are tight and they are well structured if you look down here at this picture you can see this is pretty poor basing uh the move away is fantastic right that's a plus you can see this was a losing trade I want to make it very clear that just because a zone is great like this one over here doesn't mean the trade's always going to work out the best zones will fail and and
19:28
the worst zones will work sometimes it's very important to remember we can see look at this basing here just really whippy price action um it's not super Clear goes all the way up to here to all the way down there it's not really clear and consistent right and not only that there's 1 2 3 4 5 6 7 8 9 10 11 candles in that basing remember the the best zones are tight and well structured with consisting to one to 4 candles remember that guys those that's going to be
19:55
the best basing I'm not saying I wouldn't take a trade like this I'm just saying it might make me hesitate a little bit and a big part of trading is feeling confident in your strategy so why a messy bases with too many candles like I showed you that suggests a a pretty much a weaker imbalance and it should be avoided I'm not saying you can't do it but if there's a lot of whippy price action
20:16
like this and then I move away it's really not my favorite I want to see good tight basing like this look at this range it's very very clean before that move up only four candles in this basing here remember I like 1 to four if it was a single candle basing that would be good as well that's fine with me but I like anywhere between one or four and again like I said earlier I prefer a rally one to four basing candles and then a rally right that's the zone that I prefer and then for
20:41
Supply obviously the opposite I prefer a drop and then a base and then a drop right and we we sell the return to that Supply Zone that is what I prefer that's kind of like my dream supply and demand Zone but obviously if it's a good Trend and we're trading with the higher time frame Trend I don't mind taking a Zone like this I'm just trying to show you guys the comparison between what a good basing is and what a bad basing is it's it's a pretty important factor that you definitely
21:04
should not Overlook and the the other part of which is arguably actually more important right um the basing can be bad and if we have a strong move away it's still going to be a Zone but if we have basing and there's no move away then we don't have a zone so we have a bunch of screenshots here you guys should learn a lot from this here um so the first one the figure one uh a poor move away
21:26
this is what a poor move away looks like you can see see here yes we have our basing there's basing everywhere though but like we talked about earlier this is a poor move away price it drifts away slowly the price action is very choppy there's no strong move up there's no strong momentum and and when price pulls back to these areas it often is a weak a weak reaction it's it's and I want to
21:45
make it clear I would never even trade this Zone it's not even really a Zone to me this is again kind of just mapping out the lows and the highs of price so this is a very very poor move away barely move away at all so it doesn't really qualify as a demand Zone the next one we have is what I would call pretty much a decent move away you can call these whatever you want it's just more of a way
22:03
for me to describe what I'm talking about this is a decent move away where we have over here this is figure two right here you can see we have a decent we have the basing right same thing as over here we have the basing the move away the initial move away is not bad it's a pretty explosive candle but what I'm focused on here is these next candles here they're not great right it's it it shows hesitation so this is when we have a clear directional move right obviously price
22:26
pushed down we pushed up the direction is clear it is up but there and there is multiple candles in the same direction here but the balance isn't great right it's not the strongest reaction I've ever seen you're going to see other zones where like this might not look bad to you but when we start to compare figure three and figure four you might understand what I'm trying to say so the the
22:47
third figure three here is the A+ move away and these are the zones that I like to trade um have I taken a zone that I would call decent before yes I've taken those trades I have never taken trade from a poor Zone I have taken a decent Zone trade what I like to trade is the A+ moves away these are explosive moves away with large Body candles you can see in figure three here we have the basing that we've been talking about look at this move away this is what I would call explosive
23:15
there is absolutely no hesitation like we've seen here and here it is an explosive move away that is what I like to call an A plus move away there's absolutely no hesitation there's barely any Wicks on the candles as well this signifies a strong imbalance and on return it would be a high probability return in my opinion if we do get a return to that zone so these are the zones that I am mostly looking for and then the strongest move away on a technical basis would be the Gap
23:44
move away and this is when price it's down here and all of a sudden price opens way above leaving a gap there's no candles there but that represents technically you know the strongest imbalance it it indicates extreme an extreme Supply and the Mana balance because nobody would even trade in here at all that is the next opening price and those often lead to the best reactions but they're not they
24:06
don't come up too often it does come up more often in stocks where we actually do have you know gaps in the market because the market closes but just to touch based on this we are looking for those strong moves away guys I cannot stress it enough that is what your ey should be going to first when opening up a chart when learning how to trade supply and demand and I touched on this earlier
24:28
but the best zones are created by the best moves away a weak Zone a weak move away means the zone is less likely to hold because there is less of a demand and Supply inbalance at that area obviously when this A+ move away the imbalance was insane the Demand imbal versus Supply imbalance was nuts where here it was pretty balanced right um and again like I said earlier the worst zones can work
24:49
this Zone could pull back down here and it could absolutely work and then you maybe you saw it you wanted to take it but you knew it was poor so then you didn't take it rightfully so which is the thing to do let's say it react off of it we push up it would have hit your takeprofit that's fine you have to be able to see that happen and and say hey this was not a great idea I am glad I didn't take this trade did it work yes and the same thing goes for the opposite where price can
25:12
push down to our picture perfect area of demand and boom we lose the trade and you have to also be okay with that happening as well and saying oh it was a good Zone onto the next I'm going to keep finding good zones we don't have to look too deeply into a loss when a zone is like this but when you're taking tra trades like this you have to look a little bit deeper and say hey was that really a good move away probably not and the structure of a supply and demand Zone these
25:36
are the different types of zones that we can have these are just some some basic examples of what you can you know look to see you will definitely see these zones um and they're not all the zones are going to look the same I'll even be analyzing charts on the weekend for some of the members and I'll be like oh that's a Zone I've never the structure I've never even really seen before
25:53
we always will have that move away it's the basing structure that can be kind of wonky and different um and the basing formations will vary depending on the market conditions um some zones will have tight consolidation like this and then some zones will have kind of wacky consolidation before the move up so they will look different and then again like I said earlier my favorite basing is when the
26:12
Zone has one to two candles um this right here it's not my favorite example but this is a dogee candle um where we have large Wicks and a small body followed by a rally up that is our demand Zone this is not my favorite Zone but I it is a trade I would take but it's not one I would prefer I've definitely seen these zones fill more than these zones and these zones I've definitely seen these zones work more than these dogee candle zones but if the move away is great whatever it's
26:38
not the end of the world um so multiple candle basing messy now this can be clean as well and why it's messy is because there's one candle down here the Wick's down here right it's kind of all over the place it's not terrible where you can have three formations perfectly aligned as well that's another example I don't mind it this isn't too messy right it's not like a wick goes all the way down here or anything so it's not too bad and then obviously my favorite the single candle
27:01
basing right here where it's pretty much you know are just one basing candle before them move up and with the continuation pattern zones this can even be a green candle as well it does not have to be a red basing candle it can be a green basing candle as well on the move up we've seen those trades work out beautifully before with the single candle basing so these are just three examples of the zones you will find on your chart um again not all the zones are going to look the same
27:26
there's going to be plenty more other zones these are just kind of the three most common ones that you will see on your price charts so get used to seeing these types of zones so how do we go about and actually trade a supply and demand Zone we're going to break it down here and the first step is our entry so after we have identified our supply demand zones we now have to enter on that trade if
27:48
it qualifies as a trading setup and the first way to enter which is you know the best entry method which is pretty much I do 98% of the time I would say is we just place a pending limit order by so this is for demand obviously it's the opposite for Supply we do that just right before the proximal line of the zone so remember the proximal line is right here because this is demand the diso line is
28:08
here that is where we place our order right here it's pending if price comes down we don't hit it we push up your order does not get filled and that's something you're going have to get used to as well um it's possible we push down hit your order hit your stop loss as well we're going to talk about stoploss placement in a minute but this is how we enter in a trade the pending limit order
28:27
and it it makes it simple right so you see a Zone maybe you wake up you got to go to work you place your order with your stop- loss and take profit above and you simply just let the trade play out whether it's a winner or a loser and this allows you to enter automatically when price Taps the zone so you're not because a lot of times some of the best zones price pushes down we barely hit it
28:45
and it pushes up you don't have time to be placing Market orders in there right and this ensures you get the best possible risk reward ratio as well now the second method which I do not recommend unless you are late to a zone I'm going to explain it in a second is the when price already enter a Zone you can enter manually with a market order um again I don't like doing this have I done it absolutely um I'll do it when let's say price is in a Zone we're sitting right here I'm like
29:12
oh we're in a good Zone here I didn't see this one and then I'll buy and then my stop loss is actually lower and actually you get a better risk reward in this situation but sometimes price will push back into the Zone rally out and then you're buying and then your your risk reward becomes wider which is definitely not advised so this method Rees quick quick execution and is not advised at all this is only like last minute you know you just saw the Zone I can't stress enough
29:36
to if you're going to do Market orders it might make you feel like you're pressured to take a trade and if you don't like it don't force the trade just miss out on it it's fine you cannot have fomo in trading at all um so again like I touched on you might get a slightly worse or even better entry based on risk reward if the setup is still valid so again using a limit order ensures Precision Precision while a market order is useful when reacting in in real time but again we want to
29:59
identify the zones before when price is up here and then you know place the order as price pushes down so just a real example here uh obviously this is after the fact guys just forgive me but we had a demand Zone here right and price so if we took our risk reward tool I will show you guys how to enter a trade later we had our risk reward tool here that is what it looks like right we're
30:21
entering just right before the Zone price pushed down we didn't get filled here we can still leave our order in and then finally price got filled over here and we were almost stopped out I'll talk about stop-loss placement here in a minute but that is the entry right we identifi The Zone before we're not waiting for price to push into the Zone here and then entering we already have our order in the market and it takes away you know hesitation as well and it takes away being scared
30:45
a lot of the problems beginner Traders have is price pulls back to the zone and as price is pulling back they see all these red candles and they get scared and they can't pull the trigger and I get it but you're going to have to get used to it that's why I like to use the pending limit order buys they're the best and then obviously the next part which is arguably the most important part because this definitely determines your risk to reward is our stop-loss
31:09
placement and the standard stop-loss placement with supply and demand is pretty much just right below the Zone I never recommend putting it on the exact price of the distal line because price can come down here and with spread it can stop you out right so going back to this so look at where these stop-loss placements could be they're never right at the zone they're always just a little bit
31:29
below that is where I always put my stop loss the standard stop loss now if you look here our stop loss would have looked something like this right again it's not at the it's not right at the Zone because if that happened we would have been stopped out here at least with the spread where if we have it just a little bit below now we have a little bit of wigger room and this this demand Zone was never broken it was respected this one just happened to test it all the way deep before
31:53
getting that reaction hitting our takeprofit now I don't love to see that I viously prefer halfway in or something like that before I move up so it is possible that's why we give a little bit of wiggle room for our stop loss usually now if you want to be ultra conservative right yeah you can have a wider stop loss right this is about as wide as I would go and this is what I would call a very very conservative stop-loss but it's important to remember um a wider stop-loss yes
32:20
it gives more room for Price action can price come down here it could technically break your Zone and then rally up I've seen this happen hundreds of times is frustrating when you have a demand Zone your stop loss is here it stops you out and price rallies I'm sure many of you guys have had that frustration before so that is why you might want to have a wide stop- loss but remember it does give you room for for more price action but it lowers your risk to reward ratio if
32:45
your entry looks this wide in order for you to hit 2: one you need to go like up to here now if your entry looks this wide your two: one is almost it's only like right there probably even lower actually like right here I'm just kind of going off the math right so going back to the price chart right this is like a normal let's say you want to Target this opposing Supply Zone here so that's where you want to take profit right there well with your stop-loss like there it's it's a
33:10
reasonable trade it's over 2.5 to one I think it's a great trade but if you had a a wider stop loss right down here now your risk reward is only 1.77 not great if you go even wider now it's only a one toone trade right so I'm not saying that this is wrong I'm not saying that you have have to have it super tight all I'm saying is that there are pros and cons to having both and that is what you are
33:34
going to have to figure out a tighter stoploss yes it increases your risk reward however it's also more likely your stop loss to get hit from normal Market fluctuations right you're not giving it a lot of wiggle room with a super tight stop loss right so again there's just pros and cons to everything there's no right or wrong when it comes to stop-loss placement again I do objectively think you know a reasonable size maybe halfway boutine standard and wide is reasonable right give
34:03
it a little bit of wiger room not too much some sort of middle ground right um so yes some guys prefer standards some prefer a very conservative stop- loss and that's fine it is important that you back test this when you start back when you start to back test your supply and demand trading strategy right so when you start to back test you know maybe run a simulation trading uh session
34:23
with a standard stop-loss a wide and and just see you know what works Works um for you and then you can decide which stop loss size you want and then which and then you'll pick that for the trades that you take so that is the topic on the stop- loss very very very important we want to give it a little bit of wig room I've seen guys put it right on the distal line and then price pulls down and then they get stopped out by the spread we don't want that we want wiggle room usually on
34:48
the top and on sorry for our entry and for the stop loss I will say um for the entry I give it less wiggle room I don't even mind entering right on the zone for the the entry uh but you can give it a little wig room for the entry as well but it's more important you give it wig room for the stop loss now the third part is the take profit and surprise surprise there is not one way to take profit there are many many ways to take profit when trading supply and demand the standard one
35:15
and and I'll be honest with you guys this is what I personally like to do it's a simple approach where you set a fixed risk to reward ratio so for example a fixed 1:1 2:1 depend dep on what you are doing I have supply and demand trading strategies where I'm looking for 4:1 5 to1 Moves I also have some strategies where I'm only looking for like a 2 to1 move and I'm aggressive with my stop- loss
35:37
uh moving up to break even which we're going to touch on here in a minute but this is what I personally like to use I'm not saying it's the only way to trade it this is just what I like to use so it's when you set a fixed risk reward which means let's just say going back to the entry over here let's just say you see the trade you want to take it you set your entry and your stop- loss here and then let's say you're targeting for 4 to1 trades well you simply take your profit you
36:00
you take your risk reward tool and you go up to 4 to1 I don't know if you guys can see it right here but I'm looking at this my risk reward is 4 to one so then your takeprofit would be wherever that is with your stop loss here and your entry here that is one way to do it I will say let's say there's a significant Supply zone right here like there was kind of a supply Zone uh like we talked
36:19
about there was a little Supply zone right here it was removed you can see we actually reacted off of it pretty good I will say if you're looking for like let's say so for this example you're looking for like a 3:1 you might want to just take only 2.37 to1 right before the the supply Zone in case we get that reaction off of it right but again I really don't pay attention to that honestly I'm just looking for my fixed risk reward if you're looking for 5 to one you put it up here
36:43
if you're looking for two to one you put it all the way down here one: one same thing that is how we look for take profit based on just a fixed risk to reward the second one which is a pretty popular one uh for Supply demand trading is when we target opposing zones um so I have a bunch of screenshots over here you can see over here same trade we had targeted the opposing Supply Zone um so you can choose a Target the nearest opposing demand or Supply Zone um and this method really
37:08
takes advantage of price reversals at key levels right so just for example if let's say going back to here if you were short from up here or some something it might actually be best to look to take profit at this Supply right because look at that yeah we missed out on a little bit but who cares we reacted off of that Supply Zone that's why it is sometimes good to Target the opposing you know areas of Supply so for this one it would have been this little Supply zone right here and
37:35
there even is kind of a small one up here as well I'm not going to it's not great but you know there was maybe even potentially two take profits here as well right I where my stop loss is but look that is where we were Target Target one target two would be the supply all the way up at 5 to one right so that is one way another way to look for targets as well just targeting the opposing zones
37:57
um the Third Way is to Target opposing structure you know previous highs and lows that's pretty much what you could be doing so that that's this is another option um I personally don't do this I know some traders who do and honestly it makes logical sense to me it's just not something that I've ever done um I honestly I've seen it work really well and it gives you a great idea of how much profit you can get in the trade and this focuses on the Market's structural points right
38:22
the support and resistance areas and it allows you to exit once price has moved through significant price levels so in this example here you can see let's say we took the trade down here if we're targeting you know structure highs and lows we would have targeted this high up here right let's make this just a little bit thicker so we can see this would have been our Target this previous high and why would that be a Target well first of all in this instance you know
38:47
we technically lost out on a bunch of profit but it's very likely price could have pushed up reacted off the high and then pushed back down right we because just structure so that is another method it's a pretty decent method as well um I like it cuz it kind of you visualize the trade before it happens right you can visualize oh uh my my 3 to1 takeprofit is before the pivot high or before the pivot High here that's that's great or I can see how much profit is to that pivot High
39:12
I like the trade it's offering me a lot of profit it's just another way um to take profit and then the last way which is also pretty good as well is to not even have a takeprofit so instead of so you would just be entering a trade with a stop loss and no take profit and this does off offer more flexibility um cuz you can choose and not set a take profit and instead you can Trail your stop-
39:32
loss up as price moves in your favor um so this allows you to like lock in profit as it gives a little bit of room to grow as well so going back to this example right let's say you you took your trade here you didn't know take profit oops and uh maybe you gave it some wigger room you identified maybe a little bit of a rally based rally here so then let's say this is your stop loss level
39:54
let me just draw it make it red so your stop loss is down here and so it's right here let me just write this stop loss your stop loss is below the Zone we get a reaction up that's great maybe you move it to break even as price is up here then we pull down base up we start to Rally okay maybe you identified this base maybe now you take your stop- loss you bump it up to here now you have locked in
40:23
as far as profit goes your stop loss is there you have now locked locked in a one:1 profit Target profit not great but it is pretty good let's say then up here we break the structure High that's great push up now we are moving our stop loss up to here below a little demand Zone here I can I can identify a little rally base rally demand zone right here look at that beautiful reactions off the zones right and then maybe you push it up here below structure and then you get
40:51
stopped out as price comes back down to here you just locked in right with with allowing the the trade to breathe you locked in a 6 to1 is this going to happen every time absolutely not I want to make that very clear I've tried to do this and it does work great sometimes but a lot of times um price will pull back and then rally like it did here and obviously in this situation it was fine because yes you were stopped out here and price rallied up that sucks but you also did
41:16
make a six to1 where that rally would suck as if that happened down here where you were stopped out here and then price rallied so you want to give it a little bit of wigger room but also you could be moving price up with your stop loss to kind of lock in that profit it is a very um it could be a very rewarding takeprofit strategy um but it can be frustrating as well but it can be very rewarding you can actually another thing you could do is let's say you take profit at let's
41:40
say you do you can mix these two right so let's say you do the standard risk reward let's say you're looking to take profit at 3:1 instead of taking 100% of your profits off at 3:1 you could take 80% off or whatever number you want and let the extra 25% of that trade just let it run and then bump your stop loss up like we just discussed along with price to kind of see how much you can
42:01
get out of that 25% uh of your position left and instead of maybe making a 3:1 you could maybe even turn that 3:1 into like a 5 to1 6:1 it's just an option there's so many things to play around with here with taking profit it's definitely worth back testing in my opinion now a very important uh topic is as well is trade management when do we move our stop loss and I want to make it very very
42:24
clear guys there is no Universal answer there's no oh you move the stop loss when price does this if anybody speaks in absolutes so let's say you follow you know another trading YouTuber anybody who's speaking in absolutes where you must do this I would run that's not that's not the way to trade right there's no Universal answer for anything in trading in my opinion um so even the idea of like
42:48
people oh never buying a downtrend I get that but I'm sure there's a couple people who have a counter Trend trading strategy so it's really not correct to say you never should so there's no Universal answer when to move your stop- loss it's a matter of again testing different methods through back testing to see what works best for you and gives you confidence to stick with your strategy that is huge you need confidence in your strategy and we will we will be talking
43:09
about psychology at the end of this video so make sure you stay tuned for that but it it's important to have confidence and moving your stop- loss and stuff can actually build confidence in a way so the first option is we we don't touch the stop loss right so going back to the trade over here right we had this trading set set up here it's actually going to be a great example as well so let's say we had the trade here stop loss below let's say you're looking to take profit at
43:34
3:1 which is a reasonable trading setup 3 to1 boom great trade you're in and out stop loss was never moved um the second op and and you can do that but the the difference is a lot of the times you could have moved your stop loss to break even when after price moved a certain way and you would it would have been a break even trade instead of a loss that's where it can suck but also what can
43:54
happen I'll touch on it a little bit here but the the the second option is to move your stop- loss to break even after achieving a certain risk to reward so for example a 1: one you can move your stop loss Or Break Even This approach is great for Traders who are targeting a larger risk reward as you know it minimizes risk once the trade has moved in you know a favorable amount in the direction you're trading in uh but this can also be can lead to being stopped out too early and
44:20
missing the move we have a great example here um so let me see how far this trade went um so this is a 3:1 let's say you're a 5:1 Trader let's say that's what you're looking for you are looking for the 5 to1 Trader your win ratees pretty low but you are profitable because you are looking for 5 to one trade so when you lose you lose 1% when you win you win 5% you don't need a high win rate
44:43
to make that a profitable trading strategy so in this example if you would have let the trade run just let it play you wouldn't have moved your stop-loss you would have been a 5 to1 trade no problem however look at what happened here we got filled here price pushed up we went almost to our takeprofit we are about you know I don't know 25% of the way from it pushed all the way back down which is scary right it's sucks giving up this profit let me tell you I've been there it
45:08
sucks um but price pushed down and then we rallied so it would have been fine if you left your stop loss at where it was at however after this move it would be completely reasonable for you to either bump your stop loss to like here or here or here or even just break even it would be reasonable and at that point this would have been a break even trade this 5 to1 trade that worked out would have
45:31
been a break even trade if you moved your stop- loss to break even in this situation and again these are the pros and cons I'm not saying one is better than the other I'm just pointing out to you guys what can happen and this has happened to me multiple times it is frustrating so view what I'm saying to you look at the pros and cons do you want to do this or not yes you will miss out on trades like this but you will also price could have easily pushed back down and and and stopped
45:56
you out but in instead of your stop loss being a loss it would have been a break even so just like it went this way it could go the other way as well and it's all up to you based on your testing what you want to do but I just want to make it clear that can happen where it stops you out a little bit too early and it does suck it is very very frustrating on the psychology especially if
46:14
like you're in a three if you've lost three trades in a row and then that happens and it price pulls all the way back stops to to break even and goes your to your to your take profit it sucks um and a way to minimize that and this is something I do as well I do the break even and and and and what I'm about to tell you so this is what I actually do this is one of my favorite things to do is
46:33
moving my stop loss to half risk after achieving a certain risk reward so um once your trade hits a certain risk reward just like we did with the break even you can move your stop loss to half risk and that actually would have prevented this from being a loser tra losing trade so going back this is our stop-loss here right so stop loss this is this is what this was our stop loss here now we
46:58
got the move instead of moving your stop loss to break even what you could do is you could just simply go to half risk you take half the risk off not only that it gives a little bit more wigger room for price to come down and tap the pro the proxim line again and rally up just like we've seen here so that is another option right it's just something you can do and then you know in this instance honestly I would have moved my stop to have risk and then as price pushed up to like
47:23
and breaking this High my stop loss honestly would have been here so I would have been stopped out right there and that only would have been a one to almost a one to one trade not really great but I'm just being honest with you guys so that's another way you can minimize you know being stopped out a break even but then obviously it's good to move it to break even as well if that is what you want to
47:41
do so that is kind of the the one of the options and then we've talked about it earlier as well we could just be moving the stop loss along with price we touched on it earlier I'm not going to go on to it again but that is another you know option that you can do and a huge reminder you need to write this down and and put it on your computer or put it in your notes or just remember this every day never move your stop- loss wider cuz you've already determined your risk before
48:07
entering the trade and and widening the stop- loss after entry it increases your exposure and it is counterproductive to discipline risk management because you want to make sure you are only losing 1% Max on every trade you take right we don't want to be increasing that loss and you don't want to be moving your stop loss you just want to let the trade play out or move it to break even you don't
48:28
want to be moving it wider ever I cannot stress that enough it is a recipe for disaster because you can keep moving it down and keep losing more money as price pushes down so remember that never move your stop- loss wider never move your stop loss wider do not forget that so one thing about trading is you want to make your entries and exits and stop losses you want to make entering those trades as seamless and as easy as possible you want to be focusing on analysis not focusing
48:54
on oh how many Lots do I buy what how much do I buy here I got to log in it's much easier if you can connect your broker to trading tra to trading view this is what I personally like to do because you can place real trades directly from Trading view all you need to do is connect your broker account to that platform now this integration it does allow for again like seamless order execution
49:15
you want to be focusing on your analysis not the execution execution should just be oh very simple um and it's again it's chart analysis trade and management all in one place it is the best way to be trading in my opinion and there are over 80 plus Brokers that you can choose from I'll show you guys some of them down here so when you go to the trading panel you can see all of these Brokers here um I don't know much about Brokers I just trade with oanda so I'm the wrong guy to ask
49:40
about Brokers but there are ton of Brokers here you can choose from to attach your your tra your trading account to trading view to just make your trading just so much more simpler and especially managing trades especially when you're on the go right cuz you can have the trading View mobile app which which is very very convenient I'm on the go quite a bit especially lately I got a kid on the
50:00
way so it's been nice to be able to just manage trades on my phone really easily and even enter trades as well as zones formed um so when we use trading view when you enter a trade we use the risk to reward tools so let me just go over here I'm not going to log into my real account because I'm not I don't feel like editing an entire video um you know hiding my account number and all that stuff so I'm going to connect the paper trading account here um I must have taken a trade on
50:25
this I got 15 bucks paper money let's go um so anyways it's the exact same thing whether you're in a paper trading account or in a real account so I'm just doing the paper trading account to just show you guys so once you're logged in we're going to go back to the PowerPoint presentation here the first thing we want to do we're going to use our wrist reward tool and what this does is it it helps you set your stop loss and take profit automatically based on your desired risk
50:47
reward so this tool is essential for visualizing your trades potential before actually entering so the first thing you want to do for Longs we're going to click on the long position tool I'll show you guys here in a second and for shorts we're using the short position tool obviously and what we're going to do going back over to the trading view so for this example here right we come over
51:06
here so I have my favorites tab here you can add everything to your favorites tab by just clicking the star on all this stuff and then it'll add it to the favorites bar I have all of it on my favorites bar but to show you guys where to find it you come over here to this 1 2 3 fourth tab over here you're going to see long position and short position they're start out because that's means it's in my favorites so for Longs right cuz this is a demand Zone for right here
51:28
we adjust our stop loss just visually right we look we visualize the trade right let's say our takeprofit is at 5 to one up here that's where our takeprofit is going to be we're setting the trade up right now so basically our entry is here right where the green and the red are separated our stop loss is right at the low and our take profit is up here what we do from there is we simply rightclick and we create limit order from here this is the order window so when it's your
51:56
account this will be your real account where you can place an order from and all you do you do not touch this right let me just change the color you are not touching any of this here this is already all set up you can see your this is your wrist reward 4.99 right it's supposed to be 5 to1 but it's off by you know point1 whatever you can see our risk reward is already set up our stop- loss
52:16
is the price of our stop loss is exactly set to where we have it our take profit is exactly set to where we have it and our entry is set to exactly where we have it based off of that tool cool and all we need to do from here is adjust our risk so what you do here um well I go to percent balance it's definitely the best and you go to 1% right you're risking the 1% uh of your entire account
52:42
or I think it's actually percent risk yeah my bad so it's 1% risk right that's what you're doing 1% now if you want to risk you know let's say only 0.25% oops you just go 0.25 right you can risk that you can do whatever you want want you can literally go 2.35% risk and what that does watch this number down here it adjusts your loss right so watch as I adjust it if you go you know 6% your
53:06
loss is now $600 if you go 1% your loss is now 100 so that's all you need to do you just simply adjust this it's so easy and seamless I love this especially on the go right it's very difficult to be trading on your phone I'm sure a lot of you guys are having full-time jobs and stuff and then from here you can adjust your your stop loss from here you can move your take profit and all that as
53:27
the order window appears so it's very convenient it is the best way you know to enter on a trade there's no ifs hands or buts about it so it's really a simple way hopefully this makes sense if you guys have any questions at all remember to just let me know in the comments down below and again I I never really recommend risking more than that 1% um so this is a great way I honestly uh since trading view added this ability to just right click the risk reward tool it made life so
53:52
much easier because your your entry your stop loss your take profit it's already all all set so I cannot recommend doing this enough now we are going to talk about how we draw a supply and demand Zone it is pretty specific so make sure you guys are paying attention do not skip this um so after we identify our imbalance in the zone the next step is to precisely Mark its boundaries and again we have our proximal line and our distal line those are the two lines we are trying to draw
54:17
for the zone so for demand Zone we draw the distal line at the lowest Wick of the Basin candles so you can see here these are our Basin candles if you look at these two Basin candles as a group this is our lowest candle we are not mapping out the low of this Basin candle because then we're cutting through a candle here we need to capture all that basing that is why our dis line is right
54:38
at the lowest point there and then our proxo line is placed at the top of the body or the wick of the basing structure right so in this instance it was from here we're capturing both of those basing candles we got the pull back beautiful trade from that zone so for a supply Zone the pro the process obviously it is the opposite and the distal Min is place at the highest Wick we're not going to
54:58
get into it it's just you know it's the opposite and the key is to capture the exact area where the imbalance between supply and demand took place or sorry rather the balance that's what we are trying to capture before that move away ensuring that our zones are drawn accurately for Effective trade execution when price pulls back to that area and a trick that you can do here is if you look on
55:21
your charts you can click this magnet tool right here if you click that on you can attach things easily right so let's say our Zone you know it's right here let's go back to this example here so drawing The Zone we have our this is the move away but that's not what we're drawing we're drawing the Bas and candles you can see the Bas and candles ended here and then we have some sort of structure up here so with the magnet tool off it's hard to exactly capture the the highs and the
55:48
lows if we zoom in we actually miss the Zone here but if we have the magnet tool on it'll automatically grab it right it'll automatically grab to different points points we can go to the wick right it automatically just pushes it right to it acts as a magnet okay so that is an extra tool you can do to ensure that you are drawing the correct areas okay and then going back to the PDF you can clearly see you know all these zones are going to look pretty similar you can draw it
56:13
differently here um the size of the Zone it does matter so in these three screenshots we're going to look at the difference between a small smly drawn Zone it's not even a word but a small dra uh Zone drawn small a medium Zone and a large demand Zone and each variation impacts the risk reward ratio that is what it's important to remember and just like we were talking about earlier there's
56:35
no right or wrong um if you have a tight Zone the risk reward is going to be better um so I kind of break it down here where a small Zone provides the best risk reward ratio but has a higher chance of getting stopped out before price reacts because there's not a lot of wiggle room right so for example let's say this Zone down here so okay in this example price went all the way to the bottom
56:58
so a small Zone would have been great so in theory yeah it would have been great if we had a really tiny Zone like this because then the risk reward becomes giant right to just go to an extreme let's say our zone is like this small right here let's say it's that small that it's so small where like a small move is going to get you so I would say that's a pretty small move it's going to get you
57:17
a six to1 right but then the pros and cons of things come into effect here where okay price is going to pull back though and it could easily stop you out because there's not a lot of wigger room so it goes back to the thing where you know there's not a there's no right or wrong when doing this there's just differences so if you look here I can high highlighted the RIS reward so the these
57:37
three screenshots are the exact same trading setup the exact same demand Zone but if you look they're all drawn differently so the small zone is this one right here you can see the risk reward was 5 to one targeting the high so we targeted the high on every single trade if that's where you wanted to Target we're looking at the difference between the risk to reward the very small Zone 5.71 that's great but also not a lot of wiggle room and also price could have maybe missed your
58:02
entry as well cuz price cuz the zone is so small the medium Zone which is always what I prefer offers a balanced approach it not only increases the likelihood of execution but it also maintains a pretty good risk reward as well so yes we missed out on some profit because our Zone was a little bit bigger here but it also ensured that I got filled as price pushed in because a lot of times price will just Wick your Zone and rally without you and this is a still good risk reward
58:26
it's 3.69 looking pretty good now the large Zone it has the highest probability of getting filled right because price doesn't have to come down that far it get a little taggy in the trade but it also comes at the cost of a lower risk reward so the exact same trade targeting here that is only a 1.8 to1 it's not great maybe that works for you I'm just saying it is different I'm just trying
58:49
to point out to you guys the difference here the way you draw your zones and how big now again I'm kind of a middleman kind of guy I like you know somewhere large between large and small and and and sorry this is actually supposed to be the opposite this is a medium and this is a large so these are supposed to be opposite I will change that for the spreadsheet so those are supposed to be opposite this is the large zone right here I labeled that wrong but hopefully you guys are
59:10
starting to see the difference and again there's no right or wrong it's only different right maybe you're only looking for you know one to one trades and you're looking for a higher win rate maybe this big Zone's right for you um and choosing the size depends on your risk tolerance and the trading objectives as well so hopefully this was a good visualiz visualization of the size of the
59:29
zones and why it matters and how it does affect it now we are on to trading time frames to use and this aligns with the multiple time frame analysis but these are the basic time frames for supply and demand so in supply and demand trading we use multiple time frames to help us confirm setups and align with the overall trend we don't want to be you know buying I mean you can technically but
59:54
it's it's it's low odds to be be buying a 1hour demand Zone and a daily downtrend right um so here's how we can apply this in in our trading so for day trading these are the typical trading time frames where if you're entering on a one minute our higher time frame is our 15-minute time frame right so for one minute entries we're Iden we're looking at the 50-minute as well so 5 minute entry
1:00:16
1 hour is our higher time frame for the 50 minute entry we're using the 4our as our higher time frame um these are just kind of the basic Standard time frames that we use these are the time frame sequence es or combinations whatever you want um and then for swing trading which is what I do H1 entry we're using our daily as our higher time frame for the H4 entry we're using our weekly as a
1:00:35
higher time frame now a lot of people don't enter on The Daily myself included I barely do anymore if you're going to enter on The Daily we're using a one month as a higher time frame obviously you guys can see the difference between day trading and swing trading here now me personally I am a swing Trader and the time frames I enter on are an H1 and an H4 I highly recommend if you are a beginner Trader with supply and demand trading you want to only be trading one sequence I am
1:01:00
good enough now I've been trading for 5 years I can enter on both and it doesn't confuse me I would strongly recommend learning on one time frame and I always recommend swing trading over day trading especially for beginners and this is important here as well the fractal nature of price guys price is fractal and what that means is if whether you're trading a 1 minute time frame with a 50-minute higher time frame or you're entering on a daily chart price is fractal it's the exact
1:01:27
same concept no matter what time frame you are on and you can trade whatever time frame suits you as a market structure Remains the Same whether you're again you're on the one minute or the one month and there's no best time frame to trade on I've get comments all the time on my videos what's the best time frame to identify supply and demand zones it depends on what you're doing and
1:01:44
what you're if you want to be a swing Trader or a day trader and there's no there's no really better one I will say however if you were a day trader and you are entering on a 5 minute 50-minute or one minute chart the economic data that comes out and news events will affect your trades more than if you are swing trading because price can really shoot up with economic data so I will say that's
1:02:05
really the only difference but as far as the way you map out of demand Zone on a 1 hour chart is the same on a daily and the same on a one minute it is the exact same methodology because price is fractal whether you go up or down um so yeah you're applying the same Concepts and the key is consistency and understanding how price behaves on the time frame you're most comfortable with um and how quickly it moves so there is no right or wrong these are the sequences that you can trade
1:02:32
and to decide what sequence you're going to trade it's all based on your lifestyle now I'm a swing Trader because I don't want to be on my computer all day and I'm not going to get in detail but my broker kind of sucks for day trading as well because the spreads are so high not going to get in detail anyways um for so for the day trader if you can be at your computer for most of the day
1:02:51
you can definitely consider being a day trader um if you're working a 9 to5 and you're busy all the time time maybe not um and you can also enter trades so you're entering trades on a 1 minute 5 minute or - minute capitalizing on the intraday price movements now this trading it requires very quick decision- making which is why I always recommend beginners stay away right because with swing trading you can be it's a little bit slower you can think this requires quick
1:03:16
decision- making which means in my opinion it's more suited for advanced Traders and it also takes constant monitoring which can be you know kind of a pain pain in the butt as well and this lead to higher stress levels which is not great you want to make sure your trading psychology is on point and not all over the place now I do not recommend beginners to day trade like I said here um I would
1:03:35
actually just be learning how to trade on a swing trading time frame and then you can go down to the day trading time frames if you have found success and if you want to get more trades and then obviously with day trading you're going to be trading less markets because there's more movement right so a swing Trader you know I trade I don't even know the number like eight eight pairs something like that and uh with day trading you might want to not trade a pairs you might want to
1:03:58
trade like three or four right you don't want to be overwhelmed and be looking at too many charts um so swing Trader again which is what I do this suit's kind of a busy lifestyle you can easily be a swing Trader and work a 9 to5 um so if you have a busier schedule you can't monitor the markets constantly it's definitely a better fit for you than you enter on an H1 H4 or daily and you can
1:04:18
hold positions for several hours or days usually a couple usually a couple days for me um depending on what the risk reward I'm looking for um so this approach requires less time in front of the screen it's great if you have kids full-time job and this so yeah best for the 95 job you can also enter the trades on your phone while you're working just don't get caught obviously right but it's great
1:04:38
right you can maybe you wake up in the morning you check your computer um and you see a 4-Hour demand Zone you place your trade let's say you're at work you get triggered you get your trade gets triggered now you know you're managing the trade and maybe every hour you go to the bathroom you tell your boss oh I got to go to the bathroom again ha and then you check your trades manage it
1:04:56
maybe that's when you bump your stop to break even if you can check your phone at work a little bit you can easily be a swing Trader and that's fine I'm sure your boss won't mind too much anyways um and then even right right if you're trading an H1 or an H4 sometimes it can take several hours for price to pull back right so going back to this example this is a f- minute chart but again price
1:05:15
is fractal so this could actually be one month um this could be a one Monon chart as well you don't even know so price is fractal but let's say you wake up this demands Zone's form price is up here you have have all day to you can even place the order when you get home right cuz price it hasn't returned yet so it just gives you more time to you know maybe miss out on something it just it just it's less stress I prefer it it's not it's not the best way to trade it's just preferred
1:05:40
in my opinion especially if you are are new and if you have to be on your phone and your mobile swing trading is definitely the best for that so with multiple time frame analysis you're going to see here this is what I like to call an odds booster this is going to boost your odds of trading success and in this time frame frame sequence we will be using the the H1 as our entry time frame
1:06:00
and the daily as our higher time frame right that is a sequence we'll be using so HTF means higher time frame ETF means entry time frame you're going to see that here coming up so I just wanted to clarify that so multiple time frame analysis with supply and demand zones it increases accuracy and by aligning with the higher time frame zones with lower time frame entries this is one of the best
1:06:23
ways of boosting our odds of the trade working note because line with the higher time frames the higher time frames are more powerful right so for example a weekly demand is stronger than an H4 Supply so just for example here let's say this was a weekly demand zone right here right so weekly demand and then let's say there was a supply zone right here and there was a supply Zone here
1:06:50
that broke so we had a supply Zone here and then let's say this is the same time frame just for the example let's say this is our H let's just say H1 Supply or lower weekly demand is going to be much stronger than an H4 Supply the the the odds of a week of an H1 Supply holding against a weekly demand is pretty low because it's the higher time frames these are higher time frame forces that are
1:07:10
coming into effect so it's important to remember that that's why you want to be looking at higher time frame analysis so the first how do we you know apply this in our trading the first thing you're going to do and this isn't necessary you can take one time frame setups but your your win rate might just be a little lower and that's fine everyone has a different win rate when they're profitable there's profitable traders who probably have a 30% win rate and profitable Traders have
1:07:34
like a 75 80% win rate the first thing we're going to do is we are going to map out our supply and demand zones on our higher time frame so the same way I've been teaching you guys that's what we're going to do but on our higher time frame and in this example it is the daily chart and we are going to wait for price to reach that key Zone before looking for trading opportunities on our entry time frame the second step is is we are going to drop to our entry time frame on our
1:07:57
H1 right the daily to the H1 so once price reaches the higher time frame Zone we switch to our entry time frame and then we look for fresh demand or Supply zones on our entry time frame forming within or near the higher time frame zones let me show you guys what I mean so higher time frame Zone and control this is our higher time frame demand zone right daily demand you can see the basing isn't great here but that's just pointing that out so we mapped out our supply and demand
1:08:24
zones this is our daily time frame we identifi Demand right why is it demand beautiful move away great move away that's our demand zone right we had equilibrium move away that's our demand this is our footprint from the banks and we are waiting for price to reach a key we're waiting for price to reach the zone so right here we are doing nothing we are waiting for price to hit our Zone and then here once price touched the proximate line of the Zone it did go deeper but once price
1:08:49
touched here you can actually set alerts to at your proximal line to let you know when it does once price touched it that was our signal go to go down to our entry time frame to look for trades now remember this this stage of trading right here this is when we do nothing this is important this is just a little extra thing I wanted to put in patience Pace this stage of trading requires
1:09:11
discipline and patience we are not worrying about what oh is price going to pull back to the Zone I get questions all the time we have a demand Zone on let's say the Euro US dollar and people comment or ask me do you think price is going to pull back to that zone and I'm like look I I hope right I hope we can get a pullback I I don't know if it is I'm I can't really predict the future like that I
1:09:31
don't know if it is and I don't care our job is not to chase price or Force trades but it is to react when Market presents a clear opportunity which is why we could have a limit order here or again wait for confirmation on a lower time frame if a pullback happens that's great we're ready with our entry plan if it doesn't let's say price pushes up here we continue up then whatever we accept it and we move on we move to the next trading opportunity it's a game of probabilities
1:09:54
noted I we're not trying to predict yes okay if we have a demand Zone here we're predicting that price could go up I agree but we're not predicting if price is going to pull back to that zone or not it's worthless it's not worth your energy to think about if price is going to get the pullback or not I just wanted to touch on that because I think it's very very important patience pays be patient don't hop on you know transends momentum wait for pullbacks so for multiple time frame
1:10:19
analysis higher time frame in control we drop to our entry time frame right so this big uh green box that represents our daily demand zone right the one that we just talked about here if I can go back I don't think I can now actually I can yeah so this this is our higher time frame Zone and that is this Zone here right you can see one daily demand Zone in control and now this price action here you're seeing all these candles that is our H1 chart now so we identified price came in
1:10:48
control hit our demand zone right on our higher time frame once price reaches it we switch to the entry time frame which is our 1 hour now we're looking for fresh demand or Supply zones we're not looking for Supply in this instance because it's demand when we're trading at higher time frame demand we're looking for demand zones if this was a higher time frame Supply we'd be looking for Supply zones right it's just the opposite and we're looking for that on our entry time frame
1:11:10
forming within or near and when I say near I mean after it's hit and price pushes up so right here you can see right at the proximal line we had a very nice move right you notice our basing strong move away this is our H1 demand Zone trade right there boom beautiful setup price pushed out of our higher time frame Zone and that means that the higher time frame zone is in control right it's in control because it pushed down it's in control we push up sure we're not at the Zone
1:11:40
anymore here however price is in control so this H1 demand Zone that removed a structure up here it is a good entry as well very good demand Zone rally base rally another tradable opportunity and there was even a Zone down here that we didn't get a a pull back to that was kind of Z A Zone that was inside of it so that is the basic confirmation or multiple time frame analysis Zone in control
1:12:04
entry model we're going to touch on this a little bit later more detailed using confirmation so make sure you stay tuned for that but this is how we use multiple time frame analysis it is essentially aligning our higher time frame zones with our lower time frame zones to be trading in the same direction right so for example our higher time frame demand comes in control we probably don't want to be taking short trades right and as you can see they worked out horribly and why
1:12:27
because our higher time frame demand forces were in control hopefully that makes sense so we also how do we qualify a supply and demand zone so for a supply and demand Zone to be tradeable it must break an opposing zone or remove a trend line both of these they're not required right only one out of the two and technically you don't have to have any of this it's just a way that I narrow down my
1:12:53
zones to make sure I have the best Zone and again you don't need both you can just have one the best zone is when both happen and I can show you guys an example on that in a real tree we took in the USD CAD recently where it actually removed a trend line and an opposing Zone but the first one we needed to break an opposing zone so demand zones must break a previous supply and supply zones must
1:13:14
break a previous demand so for example down here in figure one we had our opposing Supply Zone here that opposing Supply was removed by this Demand right so the supply was up here boom we shut up that qualified this demand Zone because it removed Supply it's really that simple it made it a better Zone than if it didn't so the second option to qualify zone is if it removes an opposing trend
1:13:37
line and the zone is only valid if price breaks the trend line that was supporting the previous Trend so you can see here we had a nice downward trend line Picture Perfect nobody would deny that that's a downtrend all of a sudden price broke up broke the trend line and would you look at that you can see a nice rally base rally demand down below why are these demand Zones look at the move
1:13:55
away look at the basing those are demand zones so this is an example of a qualifying a Zone with a trend line and this is an example of qualifying a Zone by removing an opposing Supply Zone and obviously for the supply it's inverse for Supply we are looking for demand zones to be removed and then we are looking for upper trend lines to be removed for Supply as well and these are going to be these are an odds odds booster as well you don't need to have this it just would
1:14:19
give me more confidence in my trading decisions and this is very important as well guys the zone must be fresh they don't have to be I personally I have not taken a trade at a tested Zone maybe I've done that once or twice I don't do it I don't like doing it it get it makes me feel very less confident in the trade so it must be a fresh Zone price must have not returned to the Zone yet tested zones lose their strength and reliability so these are two examples this the Zone's fresh
1:14:47
here because price is not return and really simple price then returned now it's a tested Zone it's really that simple and this confirms a true shift in Market control because price never hit it yet um and just with the idea earlier when we talked about the logic behind supply and demand right so there were so many orders down here let's say there's 20,000 orders left right there's 20,000 orders left here well at that point when price pulls back down to that
1:15:15
demand Zone let's say we push back down we hit the demand Zone that's great maybe 10,000 got filled so maybe we hit it again fill the other 10,000 but the more it touches the less orders from the banks that there are sitting there so I prefer it always to be fresh never tested once it's tested the Zone pretty much becomes invalid for me and I don't like to trade it so just a very very important um little extra tip there so one of the trading strategies that you can do with
1:15:41
supply and demand this is how some people only trade I will take trades like this this is one way to trade it's called a confirmation entry it's when we confirm our entry on a lower time frame by seeing zones REM moove we did kind of talk about it earlier we're going to touch a little bit more here so confirmation trading is about using multiple time frame analysis if you guys don't understand that go back and watch the part on multiple time frame analyses we refine
1:16:04
our trade entries so instead of blindly trading every Zone that we see we are looking for lower time frame zones that form inside or near them so a valid confirmation setup must either remove an opposing Supply Zone like we talked about earlier for qualifying a zone or removing a trend line showing a change of trend I do prefer when we see both doesn't mean you're going to get it but I do
1:16:25
prefer that so we saw this image earlier in the multiple time frame analysis slide it's a great example of waiting for a higher time frame Zone to take control which is this one down here this is our higher time frame demand Zone all this price action is our entry time frame we waited for it to come and control and like I showed you guys earlier those two trading setups you can see we had a supply Zone REM moove we had our supply Zone here we had our supply Zone here both of
1:16:49
these Supply zones were removed you can see it was respected before we pushed up and broke it this one here kind of respected we pushed up and broke it so this is a classic example of two opposing zones removed qualifying these demand zones now did we absolutely need them no but it does give you more confidence you can say Okay Supply zones are being taken out here that means buyers are
1:17:09
stepping into control right so this is just the power of confirming our entry and our risk reward with the whole higher time frame zone is very large where their risk reward with our entry time frame Zone it's more defined and refined so it becomes higher as we look for confirmation and it also prevents prices blowing through our Zone and you can even go one step further right so again this is our daily time frame this is our higher time frame zone right here this is
1:17:37
our 1hour demand Zone here and you could even go one step further where maybe you look for extra confirmation this is a 1hour demand Zone if you guys remember from earlier when we have a 1H hour higher time frame our entry time frame is a 5-minute chart so you could actually look for a 5 minute time frame confirmation as we come off of the 1hour demand Zone that is just just another option you can go one step further and look for extra extra confirmation in your trading the
1:18:00
second way to confirm our entry is when we see a trend line removed so just like we had before this is our higher time frame demand Zone when price contacted our higher time frame demand zone right here we identified this trend line right everyone and their brother and sister would agree that's a downward trend line you can see the higher time frame demand Zone was in control that was our
1:18:20
signal to go down to this which is our entry time frame our 1 hour chart we Haden the downward trend line the downward trend line was removed and that left us with a little rally base rally demand Zone on our entry time frame once the trend line was removed and going back to the earlier slides we place our our order down here something like that so this is a trend line you know reversal trade
1:18:42
as well and you know if there was let's say there was a supply Zone here as well there's not let's say there was and that was removed as well that's a bonus then we have double confirmation by seeing a trend line and opposing zones are moved this is a very power powerful trading strategy this this confirmation entry and it works very well um especially on the lower time frames when you are
1:19:01
day trading the other type of trading strategy which is actually what I do more I I'm mostly a set forget trading guy um I like to just I I recently I have been just entering on the H1 and the H4 a lot of the zones that I just find that are high quality haven't really been paying too much to the higher time frame Trend too much more for just taking profit I'm not going to get too much detail but anyways this is is our set and forget entry a lot of people like this one
1:19:26
and this is basically a high OD set for forget trade that follows the trend on the higher time frame and relies on Fresh remember always fresh supply and demand zones without needing extra confirmation so by aligning multiple time frames we increase the probability of a SE a successful set and forget trade so not every set forget trade must have this but a high odds set and forget trade must follow the higher time frame Trend so for example right here this is our higher time
1:19:55
frame so let's say this is our daily chart right here and this is our H1 a a high odd 7 for get trade the higher time frame will look like this so obviously a higher time frame uptrend you'll be looking for Longs if it's a higher time frame downtrend you be looking for shorts it's just the opposite so that is Step that is the first thing we need higher time frame Trend we're trading with
1:20:16
that and then also increasing the odds even more is when we have an entry time frame Trend in the same direction so if this is our higher time frame Trend this is our entry time frame Trend you can see we had a rally based rally demands on here beautiful little 2 to1 set up off of that zone there you can see high the entry time frame Trend as well so both of our entry and our higher time frames were trending in the same direction at and and you don't need both right at at minimum
1:20:41
I would at least want to make sure I'm trading with the higher time frame Trend we don't really need the entry time frame Trend it just shows to me that hey not only is momentum up on our higher time frame but it's also up on our entry time frame we want to hop on this right it makes it just High higher odds and this approach it just Stacks our confluences right making the Zone more reliable and keeping the execution pretty simple as well we're not waiting you know for the
1:21:04
confirmation this is probably one of my you know favorite entries and now we are going to get into some odds boosters you guys know you guys saw this on the top of the screen earlier these are our main odds boosters guys the strength of the move away number one probably one of the most important ones because the stronger the move away indicates more demand or Supply so an odds booster basically
1:21:28
increases the probability of a Zone holding by adding the extra Confluence one of the strongest odds boosters is that strength of the move away we want to see those explosive moves away we want to see a marabu candle as well not sure if I said that right uh I was thinking about going on Google and typing in how to pronounce it but I just thought I didn't even really care so maraboo maraboo whatever it is this is what it looks like right here basically it's a it's a strong green or
1:21:55
red candle with very little no very little to no Wick at all right we don't want to see Wick like that you can right you can see here this explosive large candle it was basically a marabu whatever hell it's called and uh but we had a wick here that's fine still the overall candle is large and it's an explosive move we are looking for those as price leaves the basing we want little to no Wick that signals strong momentum without any hesitation and the cleaner and stronger the
1:22:22
departure the higher odds of the Zone holding when price returns right very strong departure here that's probably why the Zone holds but remember guys I touched on it earlier as well just because it's a A+ Zone doesn't mean it's going to work the worst zones can fail and the best zones can or sorry the worst zones can work and the best zones can fail so remember that it's very important you're not going to win just because it has a marab bozo candle as it leaves doesn't
1:22:45
mean it's going to be a profitable trade but this is what we want to be looking out for to increase the odds in our trading the second one and this is something I've actually added in recently I do have some individual videos on this in my trading tips playlist on YouTube so make sure you know you watch that tips playlist and just another reminder guys make sure you hit that subscribe button and
1:23:05
like the video If you haven't liked this video it's taking a lot of work so I would appreciate it and if you want more information you want to get my daily forecast analysis join the membership as well for even more video lessons more go that go a little bit more in depth so liquidity trap before his own very very very powerful it's one of the strongest odds boosters in my opinion and
1:23:27
it's when we have a support or resistance remember support resistance is not supplying Demand right before the zone so it's a great example here so a high quality zone for this should have a clear support resistance before the Zone where many of the Traders are being trapped so you can see here we have our demand Zone I know this picture isn't great it's just one I had on my computer you can
1:23:46
see our Basin candles and then that explosive move away this is objectively our demand Zone price pushed down we created support right we reacted off of once twice three times four times that is a support level before our demand Zone and the logic of this is all the retail Traders and I get it guys I'm a retail Trader you listening to this we're all retail Traders but we're not trying to
1:24:08
be with the 95% of Traders we're trying to be in that 5% the M if you go into Google and you type in what's the most or just a trading strategy what's a trading strategy you're going to see support resistance one of the most common ones so this is a clear area of support where the beginner Traders retail Traders they're buying this support and you know where their stop- losses are they're
1:24:29
all right here I'm sure they're different sizes maybe they all they're all the way down here into our demand zone so the logic of this right is our demand zones down below we want to trade with the banks we have identified that's probably where the banks footprint is and we can identify maybe price is going to react off of there our support levels here so all their stop losses are here which means
1:24:50
they're buying at the support and then they're selling here right they lost the trade they're selling and we're buying their sell orders right into our demand zone so essentially we are taking the opposite side of a retail Traders trade which you know based on the math that we all know 90 to 95% of tra retail Traders lose this is going to set the odds well into our favor in my opinion and
1:25:14
that is the logic right they are selling where we are buying right we don't want to be buying here where our stop loss is where everyone else is is where there's a support area we want to look for the real demand that's right below and obviously for Supply it is inverse so we are basically trap we're trapping the retail Traders as they are entering too early missing out in this demand Zone
1:25:35
um so we're using that liquidity to basically fuel our trade right their their cells are our buys and this setup increases the odds of a strong reaction I've seen this work so many times it's very very powerful it's definitely something you ought to be looking for when trading supply and demand now we're going to dive a little bit into the trading psychology aspect and this is a huge part of
1:25:54
trading I know it has nothing to do with supply and demand trading but I wouldn't feel right if I didn't leave you guys with some psychology information because again you could trade whatever strategy you want I do personally think supply and demand is the best but if you don't have trading psychology with it you're not going to end up doing too well um so this is this this topic is on
1:26:12
losing streaks and just just a reminder you guys need to see this this this is a risk reward break even win raid so just for example if you trade a 1 to three risk reward 25% your break even if you are looking for one to ones or two to ones it just shows you your break even rate and it shows that okay if if you are looking for you know two to1 trades you only need to be right 33% of the
1:26:34
time in order to break even right so it's a great chart to have on hand and it really just helps you remind yourself like hey you know maybe you're not doing that bad the the process of becoming a Trader you don't just go from zero to 100 you only do that if you're you know taking massive risk the trading process is you're going to be losing at first then eventually you'll become Break Even if you keep putting in the work and then you'll make Mone money so if you're at the
1:26:55
break even stage refer back to this chart you need to screenshot this or look it up on Google I got this from Google it's extremely important remember if you guys want the copy of this spreadsheet or sorry if you want a copy of this PDF file just join the group you can get it it comes with it if you want to have it on hand instead of just referring back to this video but I do recommend watching this video a few times as well and get used to everything I've talked about that's how
1:27:16
I learned when I started trading is watching the same videos over and over again but anyways have this keep this keep this on hand make this your phone background right it could definitely just give you a little bit of a psychology boost when you realize hey you know what I'm I'm a little bit I'm I'm just close to break even if I just keep going maybe I can get a buff so the key to understand to the key fors trading psychology is to understand that losses are they're just
1:27:39
part of a pro probabilistic game uh they're not a reflection of your skill in the moment just because even if you lose four trades in a row big deal so how do we handle our losing streaks we need to just stick to our strategy right deviating out of our strategy is just going to lead to frustration and it'll lead to more mistakes trust me um trust the probabilities right we're we're trusting the probabilities in the long run a proven Edge plays out over hundreds of Trades
1:28:04
not a handful right for example I play poker I don't play as much anymore but I was a pretty decent poker player I'm still all right I don't play as much but it could be me I'm a pretty good player I can definitely beat I can definitely be a profitable poker player at a at a table who with a bunch of people who aren't that great but if you put me up against a table a bunch of against a bunch of against oh my God I can't even talk if you put me up against a bunch of professional
1:28:29
poker players who are way better than me yes I can beat them in a few hands 100% I could just get Del Aces and they could have pocket kings and I'm going to take all their money I can get very lucky and it's very similar to trading you can press by and make a ton of money and price just goes up a bunch and you you win but a proven Edge an edge it plays out over hundreds of Trades certainly not a
1:28:51
handful I want to make that very clear to have a four to five trade draw down is not unheard of at all but we need to also make sure we have a back tested proven trading strategy before you start to trade with real money and we need to also avoid Revenge trading that's something I never really struggled with have I Revenge traded before sure it's not something that I deal with a lot um but emotional decisions make losing streaks worse if you're angry you're just going to take more
1:29:16
losing trades sometimes you need to just walk away another big point and we're going to touch on this here in the next couple slides is we need to have data to show the average draw down that you can expect to have and I'll show you exactly how to do that here in a second we need to have data on the Max draw downs and the average draw Downs so that when it happens you won't be shocked because
1:29:34
you can say oh I knew this was going to happen and this is very important as well your sucess isn't about avoiding losses it's about managing them while staying disciplined and losing is something that can that you can only be comfortable with after you have lost a lot of trades in other words experience is the best teacher I can sit here all day and say you're going to lose and you can't
1:29:54
get mad and until you lose like 50 trades and you can start to practice to understand oh just on to the next I'm not mad anymore you're not going to get it so it's just going to come with experience I'm telling you guys what to expect but again you're not going to learn it unless you start to experience it I cannot stress that enough guys so losses are going to happen it's just part of
1:30:15
the strategy and here are some other tips you can use to um just understand this has helped me so big I just reminder I have no affiliation with this website at all this is just something that somebody showed me and I use it I've used it ever since so this is one of my favorite tools this is a profit simulator you can go to win www.win rate. and what this is is it gives us an idea of what a specific winning percentage is with a specific wrist reward will look like so this
1:30:43
helps me visualize my success and visualize what a potential losing streak will look like so all you need to do is you go to win raid.io you will see this input section here and you're just going to input you know your account size let's say you start with $5,000 or whatever it is doesn't matter you're putting in your win rate right so let's say you have a win rate you want to go for and your
1:31:05
take profit right so for this example I chose 40% win rate take profits at two stop losses at one so it's basically a 40% win rate at 2 to one what does that look like we are simulating you can also put in the number of Trades as well so 40% win rate 100 trades we have 40 wins six 60 losses 60 losses and we still made $400 on a $5,000 account very very good and that's important as well right to see if it's profitable but the most important part is over here you can see this does a
1:31:40
breakdown so this looks different than the website but when you scroll down from this window after you hit run the strategy you can see it break down every trade if you keep hitting run strategy all these trades will become different you can see different you could maybe start the you could start the strategy off with like eight losers in a row this one it was actually pretty balanced
1:31:58
two win two losses two wins loss win loss win loss loss win win win win win but from this you can get data on this so let's say you run your strategy let's say 500 trades that's a lot of Trades you can go through this you can scroll through every trade it'll show you 500 trades it'll show you the outcome for every trade what you do then is you take a spreadsheet or a piece of paper and
1:32:21
you look at the max amount of losses that you had let's say you go through the 500 trades the max amount of losses you saw it only happened once but it was let's say eight losses in a row you write that down on a piece of paper or wherever somewhere where you can look at that you write down eight losses in a row and then you could also get the average losses as well and you can also go to chat GPT or you know whatever an AI and you can type in your exact balance and win rate just
1:32:50
like I did here and you can ask it to say you know what is with this strategy over 500 trades or 300 trades or 1,000 trades what is the max amount of draw down I could expect what is the average draw down I I can expect and then once you get that data it will help you right so then if you write down that you have that the eight eight is the max draw down that you've seen if you're at five
1:33:11
losses in a row you can expect hey we can actually get more here this can happen and then the average draw down right which is what chat chat gbt can definitely help you with that because it'd be hard to find it in here you can use that information to find the average right so if the average is four losses in a row and you're at your third loss you're like look I'm expecting to lose again but
1:33:31
I know some wins are right around the corner and what this does is it prevents you from strategy hopping and sticking to your plan because you know you've seen you've run the simulator you've known that you know four losses eight losses in a row is not going to surprise you it's all about being prepared and this is one great way to prepare yourself and again I have no affiliation with
1:33:52
this website I just think it's a great little tool now trading expectations guys this is very very important I cannot stress this enough we need to have realistic trading expectations I don't know if anybody here is a golfer if they go golfing I'm a golfer I love golfing I'm pretty good I'm not great I'm not bad either um my best score is maybe like 13 14 overp par I I don't really remember my
1:34:19
actual score um but you know I'm not bad so for me need to go out on the golf course and say I'm going to shoot you know one under par today not going to happen so we need to make sure we have realistic expectations in whatever we're doing and it's no different for trading so many Traders they chase unrealistic returns and why are they doing that well unfortunately because a lot of these online gurus they're showing massive profits right they're showing 50 Grand insane profits and
1:34:47
in reality if you can consistently beat the stock market's average return of 8 to 10% a year you're ahead of most Traders obviously you would rather be beating the stock markets 8 to 10% obviously um but you know that is I'm just showing you that that's a reasonable return so what's an actual realistic trading goal in my opinion 20 to 30% per year is incredible if achieved consistently
1:35:11
um there's a lot we're going to get touch on this in a minute but 20 30% is completely reasonable and returns definitely depend on the frequency of Trades and risk management I will say that if you are a profitable day trader you'll probably make more than a swing Trader because you'll just have more trades so hopefully that makes sense and another thing to remember I'm not trying to call anyone out specifically but most of these grus they they're actually faking their profits
1:35:33
it's really easy to and that is why I never show you guys profits I had a guy saying let's compete you show me your profits and I'll show you mine it's like okay you go first and then if yours are if yours profits are higher than mine I can just fake one and just beat you right it's like it's pointless it's so stupid so these are two great videos um on you know how EX exactly they do that
1:35:54
I highly recommend watching these videos they're great it shows exactly how they're doing it so it's important to know that if you see that it can be fake and it most likely is especially you know if if somebody's making 50 Grand on a trade think about that as a risk reward right let's say you're looking for 3 to1 risk rewards for 3 to% to be 50 Grand you're I don't know the math I am not
1:36:15
good at math it needs to be a massive account so it's most likely they're faking it I'm not trying to I'm not calling out anyone specifically here but it's just so easy to fake and it basically these unrealistic returns that everyone promotes it really just it's it's sad because then the retail Traders they expect to make that much and then maybe they make 8% or their break even at first and they think oh I'm doing terrible when in reality it's not bad so long-term consisteny
1:36:39
consistency it beats short-term gains sure can you go from 0 to 50,000 sure it's probably pretty unlikely but we're looking for consistency long term we need to focus on learning how to trade first that's very important you are learning how to trade first you're not learning how to make money you're learning how to trade the money will just naturally come if you learn once you learn how to trade if you are risking $5 a trade and you are making money you can make money
1:37:05
if you're risking $100 a trade you just need to add more money in or grow your account so we are looking for long-term results not short-term you know gains so the last slide here about trading psychology common myths and lies this is very important as well social media is full of fake promises and they are trying to sell you a dream do I have a private group yes I do um do I make money off that yes I do but I don't you guys have no idea what car I drive or what cars I drive you
1:37:39
have no idea if I live in a little shed in the middle of nowhere or if I live in a multi-million dollar mansion I have never showed that you guys don't know what cars I drive you have no idea the reason people watch my channel is because I show forecast and Analysis before it happens a lot of these guys are just showing analysis and hindsight and pretending like they're great Traders all my
1:37:59
analysis is on YouTube and my Forex forecast the last couple of years I've been doing it so it's all there so I don't sell a dream I don't sell fake promises I just show you guys my forecast and and and learning videos that's it a lot of these guys use these methods to try to get you to buy their course and it's kind of scummy and again I'm not trying to call it anyone this is why I blocked
1:38:20
out everyone's face here but these are just some great examples when you type in on YouTube uh beginner Trader or trading for beginners so yeah the when you type in trading for beginners these are some of the videos that show up because a beginner will look at this and be like oh my God I I have like 200 bucks I can turn it to 13 Grand let's go oh 100 Grand look at this oh $100 a day boom right these are the tactics they use $100 per day in trading right like like this
1:38:43
guy down here give me a break markets don't they don't pay on a daily schedule could you in theory make $100 a day sure but profits fluctuate this is just a quick oh I want to make1 bucks a day who doesn't um another one one of my favorites is turning $50 into 50 Grand this is this one right here where $1 130 to $2 and then into specifically $3,340 that percentage return is incredible that is almost impossible how you would turn $132 into 13 Grand is by like buying a crazy crypto
1:39:17
or a penny stock to constantly be taking trades every day and turn $132 into 1 grand I'm saying it's pretty much impossible you're not going to do that um it's yeah it's pretty much impossible so get that out of your head another one is 90% win rate could you have a 90% win rate sure very unlikely I challenge any one of these gurus who say they have a 90% win rate to just post I don't know 10 trades before they happen and let's see how uh 0 90% win rate they actually have so even
1:39:46
the top Traders lose often um you we don't the key is risk management we don't need a perfect win rate you can win 33% of time or 30% of the time and be a profitable Trader this is one of my favorite ones as well quit your nino5 with this strategy look guys trading success takes years and most Traders never replace a full-time income that's so true and I don't even recommend it the first thing I would do as a Trader okay you want to become a profitable Trader the very first
1:40:12
thing I would do it's not to sign up for trading view it's not to watch my videos it's to find a job that find the highest paying job that you can get that's the first thing I would do because you need to take all the stress off of trading you need to have constant money coming in so that you can learn to trade profitably and not and focus on learning how to trade and to not just make money
1:40:33
again the money will come we talked about that in the last Slide the money will come we're learning how to trade first then the money will come we not trying to replace our full-time income right away and again it might not even happen I don't even recommend just having one source of income anyways because you know you could have three to four losing months in a row right it's definitely
1:40:49
possible the draw Downs happen on a trade to trade basis and they also happen on week to week basis and on month-to-month basis as well so success takes years you're you're not going to quit your 9 to-5 and I don't even recommend it anyways so an important part to remember here guys if you're looking for trading Ed education if it sounds too good to be true it pretty much always is real trading is about consistency not getrich quick schemes and all this represents getting
1:41:14
rich quick and it's so easy trust me it is not only the people who are determined to learn will be successful at Trading and that wraps up this entire course I thought it was fantastic let me know what you guys think about this whole course in the comments down below I know we did more than just supply and demand trading but I honestly think this was a great allaround you know just trading course just in general with the supply and demand trading methodology with the you know
1:41:42
trading psychology and all that stuff as well so again I would appreciate a like a subscribe if you are new to the channel let me know how I did in this video I'm really happy about it I thought it was great and I want to know your your guys' opinion as well and uh make sure you subscribe if you want to watch my weekly Forex forecast they are free every single Saturday yes I have private forecasts daily if you want to join that that's fine if not whatever I don't
1:42:07
care I'm a Trader first and an educator second um but yeah guys let me know what you thought of the video be careful out there if you have any questions on supply and demand trading let me know in the comments down below I will respond to every single comment hope you guys have a fantastic day
Here to help you learn
Sign in to keep a private conversation with your course tutor.
Ask me anything about the material…
Sign in to chat