📚 Demand zones: How to Identify and trade them?
Hello Traders. Welcome to this Post about How to properly Draw and trade demand levels. In this post first post we will talk about how to draw it. if you can memorize the simple methodology, then you can start applying more advanced theories on top of them! Make sure to follow for more content
Frequent Questions :
How to Draw a demand level ?
*When to Know when we have a valid demand Level?
*When a Demand level is invalidated?
*When to execute a trade in a valid demand area?
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How to Draw it ?
You just need to start with current price on the chart . Then look left and down until you find the origin of a very strong rally in price. Understand that behind every rally and strong mouvement someone is behind leaving a footprint.
Identify the base and mark it from the messy top of the base to the extreme bottom.
When to Know when we have a valid demand Level?
Rules:
When you have a very strong bullish monthly structure , demand levels tend to be accurate a stronger. In downtrend they are valid but less acurrate. By other side we like to trade the first retest. The more a zone is being tested the less accurate it becomes.
When to execute a trade in a valid demand area?
→ It is possible that price retest the zone. If that happens , from my experience you need to combine multiple factors. One of the most important is the fundamental. when you have a strong fundamental trend confirmed , then a pullback into a demand level in a strong uptrend structure is valid. By other side when you have valid micro signals in a valdi macro buy zone they probably price will be using the demand level to continue to the upside.
*When a Demand level is invalidated?
❗The purpose of demand levels are to push the price to the upside. in that way a demand level is invalidated when price cross beyond the base . By other side if price consolidate a lot in a strong demand level and slowly start to break the zone keep in mind that the price can slide down and totally invalidate the demand zone. make sure to only trade the first retest of the zone. Never trade MULTIPLE retests
❗Watch out for the big time frames trend
I hope this Educational Post was helpful . Make sure to follow and let me know in the comment section if you trade supply and demand ? have a nice day!
Frequent Questions :
How to Draw a demand level ?
*When to Know when we have a valid demand Level?
*When a Demand level is invalidated?
*When to execute a trade in a valid demand area?
-----
How to Draw it ?
You just need to start with current price on the chart . Then look left and down until you find the origin of a very strong rally in price. Understand that behind every rally and strong mouvement someone is behind leaving a footprint.
Identify the base and mark it from the messy top of the base to the extreme bottom.
When to Know when we have a valid demand Level?
Rules:
When you have a very strong bullish monthly structure , demand levels tend to be accurate a stronger. In downtrend they are valid but less acurrate. By other side we like to trade the first retest. The more a zone is being tested the less accurate it becomes.
When to execute a trade in a valid demand area?
→ It is possible that price retest the zone. If that happens , from my experience you need to combine multiple factors. One of the most important is the fundamental. when you have a strong fundamental trend confirmed , then a pullback into a demand level in a strong uptrend structure is valid. By other side when you have valid micro signals in a valdi macro buy zone they probably price will be using the demand level to continue to the upside.
*When a Demand level is invalidated?
❗The purpose of demand levels are to push the price to the upside. in that way a demand level is invalidated when price cross beyond the base . By other side if price consolidate a lot in a strong demand level and slowly start to break the zone keep in mind that the price can slide down and totally invalidate the demand zone. make sure to only trade the first retest of the zone. Never trade MULTIPLE retests
❗Watch out for the big time frames trend
I hope this Educational Post was helpful . Make sure to follow and let me know in the comment section if you trade supply and demand ? have a nice day!
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If you want to learn our strategy:
🟡 airforexone.com/ebookv5
If you want to join our vip discord:
🟡 airforexone.com/vipmembership
OTHERS
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If you want to learn our strategy:
🟡 airforexone.com/ebookv5
If you want to join our vip discord:
🟡 airforexone.com/vipmembership
OTHERS
🟡 linktr.ee/airforexone
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