The Supply & Demand Strategy That Changed My Life (2026 Full Course)

Name: The Supply & Demand Strategy That Changed My Life (2026 Full Course)
Uploaded: 2026-01-17T15:01:28.000Z
Duration: 1 h 48 min 44 s

How to Trade Liquidity, Supply, and Demand

Introduction to the Strategy

The speaker introduces a powerful trading strategy focused on liquidity, supply, and demand, claiming it offers exceptional monthly returns.

Emphasizes the importance of understanding psychology in trading after mastering this strategy for profitability in 2026.

Understanding Supply and Demand

Defines supply and demand as areas where price moved confidently; bullish candles indicate demand zones.

Explains that revisiting these zones often leads to significant price rejections due to investor interest at favorable prices.

Incorporating Liquidity into Trading

Highlights liquidity as a major market driver often overlooked by retail traders; combining it with supply and demand enhances profit potential.

Describes how to identify liquidity demand: waiting for a push up followed by a retracement before breaking previous highs confirms direction.

Mechanics of the Strategy

Discusses forming setups based on strong demand zones and breaks of structure; emphasizes the role of swing lows in creating liquidity.

Illustrates how normal supply and demand traders create additional liquidity through their stop losses, benefiting those who understand this dynamic.

Real Market Applications

Shares personal experiences with traditional supply and demand trading leading to losses due to acting as liquidity for others.

Argues that utilizing this strategy allows traders to capture larger moves rather than settling for smaller risk-to-reward ratios typical in standard approaches.

Conclusion on Strategy Effectiveness

Promises an entire mechanical rule book will be provided later in the video, allowing traders to follow structured rules instead of relying solely on intuition.

Previews examples demonstrating clean setups based on identified demand zones and liquidity formations.

Understanding Breakout Trading Strategies

Key Concepts of Breakout Trading

The discussion begins with the significance of breaking a high in breakout trading, where traders place stop losses below this level, creating a large gathering of liquidity that can lead to significant price movements.

A pattern is observed where after forming a slight retracement, prices push off sharply due to demand at specific zones. This results in high risk-to-reward ratios, exemplified by trades achieving returns like 1:10.

Liquidity is not solely based on massive swing lows; even smaller setups can create opportunities for strong upward movements when they break previous highs and form new liquidity levels.

The concept of "fake out" demand zones is introduced, where normal supply and demand traders' stop losses are used as liquidity for further price increases. This highlights the importance of understanding market psychology.

Emphasis is placed on adhering to strict trading rules to maintain a high win rate. Random trading without these guidelines can lead to poor outcomes.

Essential Rules for Successful Trading

One critical rule is that trading zones must remain untapped before entry. If opposing candles touch the zone prior to tapping it for an entry signal, the setup becomes invalid.

An example illustrates how two levels of liquidity were created away from the zone, reinforcing that if price has already tapped into a zone, institutional buy orders would have been filled, weakening its strength.

The necessity for strict adherence to these rules is reiterated; setups with tapped zones should be avoided as they indicate insufficient momentum for successful trades.

Quality over quantity in trade selection is emphasized—high-quality setups will yield better long-term profitability than numerous low-quality trades.

Drawing Supply and Demand Zones

Properly drawing supply and demand zones requires avoiding any opposing candle touching the zone until an actual entry point occurs.

Instances are provided where bearish or bullish candles touching zones invalidate them due to lack of sufficient movement away from those areas.

The importance of recognizing valid supply and demand areas is stressed; if there’s an opposing candle present before tapping into a zone, it indicates that investors had ample opportunity to enter previously.

Real market examples illustrate invalidation scenarios clearly showing how repeated touches weaken potential breakout points due to filled orders at those levels.

By following these structured insights and strategies outlined above, traders can enhance their understanding and execution within breakout trading frameworks effectively.

Understanding Price Action and Trade Validity

Importance of Wick Rejections

Price must not close inside the designated zone; a wick rejection is essential for entry, indicating confidence in buying activity.

A wick rejection from supply or demand areas is crucial to differentiate between genuine price reactions and random retracements.

Avoid entering trades based on bullish candles if they occur after a closure within the zone, as this invalidates the trade setup.

Criteria for Valid Trades

The primary rule is that price should not close inside the zone; opposing candles can still show rejections without invalidating the setup.

Liquidity must break its own high to validate a trade; this involves identifying specific highs that formed liquidity before price movements.

Identifying Key Highs and Lows

When analyzing setups, focus on breaking specific highs that created liquidity during previous price movements.

In supply scenarios, identify lows that need to be broken for trade validation; breaking these levels confirms potential trading opportunities.

Analyzing Lower Quality Setups

Even minor swings can create valid setups; understanding which lows to break remains critical regardless of size.

For less clear setups, ensure you identify all relevant liquidity points and their corresponding highs or lows for accurate analysis.

Practical Examples of Setup Validation

Review various examples where liquidity was established and how breaking certain highs validated trades effectively.

Minor structure setups can still yield valid trades if key lows are identified correctly during market movements.

Conclusion and Further Learning Opportunities

Understanding these principles allows traders to navigate complex market structures confidently while seeking high-risk-to-reward ratios.

If any concepts remain unclear, consider additional resources or one-on-one programs offered for deeper learning.

Live Trading and Personalized Coaching

Overview of Coaching Program

The program includes at least three live streams per week, personal calls, and one-on-one chats for personalized support.

Participants will receive weekly reviews of their trade journals along with tailored roadmaps and feedback to enhance accountability.

The coach guarantees that participants will become six-figure funded and profitable; if not, they can receive a refund while continuing to work together.

Importance of Supply and Demand Zones

A mechanical approach is essential for drawing supply and demand zones to avoid guesswork in trading decisions.

For demand setups, the final bearish candle before a significant bullish move marks the area of demand; this method ensures consistency in identifying key price levels.

Drawing Techniques for Supply and Demand Zones

The strategy for marking supply zones mirrors that of demand zones but focuses on the last bullish candle before a bearish move.

Effective zone identification helps traders recognize where large numbers of investors are likely to enter or exit positions.

Common Pitfalls in Zone Identification

Many traders rely on intuition rather than a structured method, leading to poor decision-making based on fear of missing out (FOMO).

Accurate zone marking is crucial as it allows traders to pinpoint specific areas rather than relying on broader candle legs which may lead to confusion.

Practical Examples of Zone Marking

An example illustrates how immediate rejections from marked zones indicate effective zone identification; entering trades after confirming price action can yield better results.

Special considerations apply when marking zones for forex pairs compared to futures; adjustments are made based on market behavior observed during trading.

Understanding Trade Validity and Price Zones

Importance of Accurate Price Entry

The concept of an "accuracy zone" is introduced, emphasizing its role in determining valid trade setups. Invalid trades often occur when price action does not respect these zones.

A significant difference in entry points (53 pips) can lead to substantial financial implications for large investors, highlighting the importance of timing and price accuracy in trading.

Even minor adjustments (like 6 pips) can translate into millions for institutional investors, indicating their willingness to wait for optimal pricing before executing trades.

Drawing Accuracy Zones

The necessity of using accuracy zones is discussed; without them, many setups would be invalidated due to poor price action within broader zones.

Investors benefit from better prices (20 pips lower), which validates the setup and shows clear interest at specific price levels as indicated by immediate market reactions.

Handling Lower Wicks in Candlestick Patterns

When candlesticks extend lower, it’s crucial to include the entire lower wick when marking zones. This practice allows for a more accurate representation of potential price movements.

The method for drawing zones involves considering both bullish and bearish candles' wicks to ensure that all relevant price actions are accounted for.

Zone Validity and Market Reactions

Including bottom wicks provides extra room for price movement, allowing traders to capture rejections effectively while avoiding invalidation from overly broad areas.

Clear setups with strong market reactions indicate where liquidity lies; tapping into these zones leads to significant investor activity and potential profit opportunities.

Examples of Accuracy Zones in Action

Specific examples illustrate how traditional zone drawings may fail compared to those marked with accuracy considerations. Properly drawn zones lead to better trade outcomes.

A notable example demonstrates how a well-defined zone can result in a 12 pip better entry point, translating into tens of millions for investors who act on this information.

By following these principles regarding accuracy zones and understanding market dynamics, traders can significantly improve their win rates and overall trading success.

Understanding Liquidity and Accuracy Zones in Trading

Importance of Accurate Drawing Techniques

The speaker discusses the significance of accurately drawing bullish candles, emphasizing that incorrect drawings can invalidate setups. A bullish candle should not be touching the liquidity zone.

The focus is on breaking specific lows to enhance setup quality. Properly marking zones by body and upper wick is crucial for identifying potential trades.

The speaker illustrates how normal drawing techniques may not always yield significant differences in setups, but accuracy zones can provide better insights into market behavior.

Analyzing Setup Examples

An example is provided where an accuracy zone plays a critical role; if drawn incorrectly, it could misrepresent market rejections and liquidity levels.

The importance of confidence in liquidity levels before a zone is highlighted. Identifying strong liquidity buildup is essential for successful trading strategies.

Understanding Liquidity Dynamics

The speaker prompts viewers to assess various examples of liquidity, noting that significant liquidity often hides below swing lows or above swing highs.

It’s explained that major swing lows attract more traders' stop losses, creating stronger liquidity compared to less obvious low points.

Rules for Identifying Liquidity Levels

A rule for two-candle minimum liquidity is introduced; single candles rarely form strong levels of liquidity necessary for effective trading decisions.

Two-candle formations are preferred as they create visible swing lows, enhancing the likelihood of encountering substantial liquidity.

Exceptions and Recommendations

There are exceptions where one-candle formations can indicate valid minor swings if they show clear price action characteristics despite being less reliable overall.

The concept of fake-out zones is discussed; these can occur when price reacts briefly before moving towards established demand zones with underlying liquidity.

For beginners, focusing on two-candle setups is recommended to build a solid foundation in recognizing proper swing lows and their associated liquidities.

Understanding Liquidity and Swing Low Formation

The Importance of Liquidity in Trading

A strong liquidity presence is noted below major swing lows, indicating potential trading opportunities as many traders are likely to place orders around these levels.

The formation of a proper swing low is crucial; even if the price doesn't touch a specific zone, it can still be considered valid for analysis.

Major swing lows are identified by observing multiple candles forming a downward movement, which signals potential bullish reversals when approaching key zones.

Analyzing Candle Patterns

Two or more descending candles create significant liquidity levels that traders should consider before entering positions.

It's essential for liquidity to match the size of the market structure; larger setups require proportionate liquidity to validate their strength.

Evaluating Setup Validity

Even if a setup results in losses, it's important to recognize that taking losses is part of utilizing powerful strategies effectively.

Traders should focus on setups with visible swings and adequate candle formations to ensure better chances of success.

Proximity of Liquidity to Zones

The distance between liquidity and trading zones significantly impacts trade effectiveness; closer proximity enhances the likelihood of successful trades.

If price action takes out liquidity far from the zone, it may not influence the setup effectively, reducing its overall impact on trading decisions.

Entry Models for Trading Strategies

Entry models vary in risk and reward; understanding different approaches helps traders choose suitable methods based on market conditions.

The directional close model is favored for its consistency—waiting for price closure in the desired direction before entering trades ensures safer investments.

Alternative entry methods like break-of-candle can offer higher rewards but come with increased risks due to earlier entry points.

Understanding Break of Candle Entries

Key Concepts of Break of Candle Entry

The break of candle entry involves waiting for the price to tap a designated zone and then break past the highest point of the previous candle, indicating a bullish close.

Entering at the highest point rather than above the body of the candle can significantly improve risk-to-reward ratios, potentially increasing it by one-third.

While this method is generally safe, it carries risks as price may not always close bullish after breaking past the previous candle.

If a break occurs in the last 50% of a candle's duration, there’s a higher probability that it will close bullish; however, caution is advised regarding potential worse entries.

Mastery of this strategy is recommended before frequent application due to its inherent risks and unpredictability in outcomes.

Exploring Flip Entries

Understanding Flip Entry Strategy

A flip entry occurs when price reacts from a zone and flips from bearish to bullish; this typically happens on lower time frames like 5 minutes during higher time frame openings.

Higher time frame candles often create bottom wicks to fill orders before moving in their intended direction, making these moments ideal for entering trades.

Quick movements can lead to missed opportunities for flip entries; thus, traders must be vigilant and ready to act promptly.

Clear rejections from zones can also signal valid flip entries if price revisits those zones multiple times with evident rejection patterns.

It’s advisable to stick with basic strategies until confidence and execution skills are developed; profitability can be achieved quickly with proper execution.

Best Practices for Trading Strategies

Recommendations for Effective Trading

Focus primarily on directional closes as they provide safer entry points compared to other methods like flip entries which require more experience.

In scenarios where prices tap into zones without closing bearish, waiting for either a directional close or break of candle ensures better decision-making.

Improved risk-to-reward ratios are crucial; entering at optimal points can drastically change trade outcomes—sometimes turning potential losses into significant gains.

Recognizing when new higher time frame candles open allows traders to take advantage of market dynamics effectively while ensuring timely execution.

This structured approach provides clarity on trading strategies discussed in the transcript while linking back directly to specific timestamps for further exploration.

Understanding Entry and Exit Strategies in Trading

Entry Strategy Insights

The speaker discusses the importance of waiting for a bottom wick to confirm a bullish flip entry, emphasizing patience in trading decisions.

A transition to discussing take profit (TP) rules and stop loss strategies is introduced, highlighting their significance post-entry.

Stop Loss Guidelines

Stop losses should be placed just above the candle that went deepest into the zone, ensuring better risk-to-reward ratios.

The speaker critiques common practices of placing stop losses below the zone, arguing it often halves potential risk-to-reward outcomes.

Emphasizes consistency in placing stop losses based on the deepest candle point to maintain effective trade management.

Take Profit Rules

For five-minute trades, targeting strict 1:4 risk-to-reward ratios is recommended as more effective than previous methods based on pip size.

Backtesting results indicate that maintaining a consistent 1:4 target yields significantly higher profit margins compared to variable TP rules.

Recent Trading Performance

The speaker shares recent successful trades hitting 1:4 targets, showcasing live market examples to validate their strategy's effectiveness.

Highlights specific trades from January 14th and 15th, illustrating how sticking to defined TP levels can enhance trading outcomes.

Advanced Strategies for Different Time Frames

When trading on a 30-minute timeframe, it's suggested to target major structural highs rather than fixed ratios like 1:4 due to potentially higher rewards.

Recommendations include setting minor TPs for partial exits at significant points while adjusting stop losses accordingly for better security during trades.

Trading Strategies and Time Frames

Risk-to-Reward Ratios

The speaker emphasizes the importance of choosing trades with favorable risk-to-reward ratios, advocating for aiming for 1 to 10 instead of settling for lower returns like 1 to 5.

Acknowledges the balance between being smart and avoiding greed in trading decisions, stressing the need to maintain a good win rate for psychological stability.

Time Frame Preferences

The speaker shares personal experiences with different time frames, noting that the 5-minute chart is currently performing exceptionally well compared to the slower 30-minute chart.

Highlights that even a 1 to 4 risk-to-reward ratio on the 5-minute chart can be very effective, indicating confidence in this strategy due to years of experience.

Pair Selection

Discusses various currency pairs being traded on both time frames, including GJ (GBP/JPY), CJ (CAD/JPY), UJ (USD/JPY), EU (EUR/USD), GC (Gold), UK100 (FTSE), and GU NZD.

Advises traders to focus on fewer pairs initially and only trade A+ setups, which are high-quality trading opportunities.

Futures Trading Insights

Mentions potential in futures trading, particularly with Gold and NASDAQ indices showing promising trends.

Suggests considering futures firms for easier account management while exploring more futures options as part of their strategy.

Trading Sessions and Timing

The speaker's flexible trading schedule spans from 8:00 AM to 3:00 PM UTC, recommending traders consider both London and New York sessions for optimal volume.

Emphasizes the importance of market volume when selecting trades during any session, advising against taking trades without sufficient market activity.

Backtesting Importance

Strongly encourages backtesting strategies before implementation, asserting that many will not share this advice because they doubt their methods' effectiveness.

Offers additional resources through a program with extensive modules on trend analysis and live Q&A sessions aimed at ensuring trader profitability.