How To Identify High Probability Supply And Demand Zone (Real Examples)

Identifying Tradable Supply and Demand Zones

In this section, the speaker discusses how to identify tradable supply and demand zones versus poor quality ones. He emphasizes the importance of trading at high-quality zones with significant imbalances.

Criteria for a Tradable Supply Zone

• A drop-based drop or rally-based drop supply zone must fulfill at least one of the following two criteria:

• It must take out an opposing demand zone.

• It must be the zone responsible for breaking the momentum line or trend line.

• Strongly recommended: A strong two-to-one imbalance move away from the zone.

Criteria for a Tradable Demand Zone

• A demand zone must fulfill at least one of the following two criteria:

• It must take out an opposing supply zone.

• It must be the zone responsible for breaking a momentum line or trend line.

• Strongly recommended: A strong two-to-one move away from the zone.

Poor Quality Zones

• If a supply or demand zone does not fulfill any of these three criteria, it is considered poor quality and should not be traded.

• However, these zones should not be completely ignored as they can still provide valuable information.

Example Chart Analysis

In this section, the speaker analyzes an example chart to demonstrate how to identify high-quality tradable zones using his criteria list.

Identifying a Tradable Supply Zone

• The speaker identifies a drop-based drop area of supply with a very strong move down to the downside that went over two-to-one relative to the size of its base.

• This supply zone removed multiple demand zones and continued its downtrend with a strong move away from it, making it a high-quality tradable zone.

Conclusion

The speaker emphasizes that identifying high-quality tradable zones is crucial for successful trading. By using his criteria list, traders can avoid poor quality zones and focus on trading at zones with significant imbalances.

Introduction to Supply and Demand Trading

In this section, the speaker introduces supply and demand trading and recommends watching his playlist on the topic. He also invites viewers to like and subscribe to his channel.

What is Supply and Demand?

• The speaker explains that identifying tradable supply and demand zones is key in supply and demand trading.

• A tradable zone has a significant imbalance between buyers and sellers, resulting in a strong move to the upside or downside.

• The speaker gives an analogy of a skill gap between two soccer teams to explain how significant imbalances work in trading.

Identifying Tradable Zones

• To identify a tradable zone, look for a rally base drop (for supply) or a drop base rally (for demand).

• A strong move should take one to three candlesticks to go two-to-one.

• Avoid zones where price is grinding up or down as they do not indicate significant imbalances.

Identifying Tradable Zones on Charts

In this section, the speaker demonstrates how he identifies tradable zones on different charts. He emphasizes the importance of scrolling out of your chart to get a big picture of what's going on.

Pound Yen Chart

• The speaker identifies a daily supply zone that broke an upward trend line and removed opposing demand zones.

• He notes that it's important to watch his tips videos for a better understanding of what he's trying to do.

New Zealand Yen Chart

• The speaker identifies a weekly supply zone that broke an upward trend line with higher highs and higher lows.

• There is also a strong imbalance to the downside.

Coffee Chart

• The speaker identifies a weekly demand zone with very strong moves to the upside.

• This area has removed multiple areas of supply, making it a good area of demand.

• The 200 moving average is also a factor to consider.

Journaling Trades

In this section, the speaker emphasizes the importance of journaling trades to figure out statistics. He discusses a weekly timeframe and identifies a tradable zone.

Importance of Journaling Trades

• The speaker stresses the importance of journaling trades to figure out statistics.

• He identifies a tradable zone in the weekly timeframe.

Identifying Supply and Demand Zones

In this section, the speaker discusses identifying supply and demand zones. He talks about his preference for certain zones and gives tips on what to look for when identifying them.

Identifying Supply and Demand Zones

• The speaker discusses his preference for certain demand zones that have broken downward momentum.

• He emphasizes that he only marks out clear, obvious zones with big imbalances.

• The speaker advises against calling everything basing as it is not very good.

World Cup Discussion

In this section, the speaker asks viewers who they are cheering for in the World Cup. He shares his own preferences and explains why it is important to cheer for your home country.

World Cup Discussion

• The speaker asks viewers who they are cheering for in the World Cup.

• He shares his own preferences and explains why it is important to cheer for your home country.

Free Training Offer

In this section, the speaker offers free training on a master class where he shares tips on supply and demand methodology.

Free Training Offer

• The speaker offers free training on a master class where he shares tips on supply and demand methodology.

• He encourages viewers to subscribe to his channel and reach out to him for help.