Supply and Demand Strategy Explanation (read)

Hello Traders. Welcome to this Post about How to properly trade a supply level according to my strategy. 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! and if you are able to draw and spot it you can find accurate scenarios. Make sure to follow for more content

Frequent Questions :

• How to Draw a Supply level ?
  
  
• When to Know when we have a valid high probability Level? and a low probability level
  
  
• When a Supply level is invalidated?
  
  
  
• When to execute a trade in a valid area?
  
  
• Where should I take profits?
  
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  okay first thing first
  
  
  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 drop in price.That's what we call the origin. Understand that behind every drop and strong mouvement someone is behind leaving a footprint and is able to do whatever he need to protect his position from losing money
  Identify the base , order block , origin or whatever you call it and mark it from the messy top of the base and the wick to the extreme bottom or body.
  
  When to Know when we have a valid supply Level?
  
  
  Rules:
  
  Well it's all about probabilities , there is no certainties in this game.
  When you have a very strong bearish monthly structure or macro structure, supply levels tend to be accurate a stronger. In that case we are trading with the market flow and we are following the main direction.
  
  By other side , when you find supply level in a strong bullish structure that's what we call a low probability trade , it might work but remember that you are swimming against the flow of the river.
  
  
  When to execute a trade in a valid supply 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 supply level in a strong downtrend structure is valid. By other side when you have valid micro signals in a valid macro sell zone then, probably price will be using the supply level to the downside. Usually a high probability supply level is the one that broke a previous low , in that case we are sure that we are trading with the momentum.
  
  When a Supply level is invalidated?
  
  ❗The purpose of Supply levels are to push the price to the downside. in that way a supply level is invalidated when price cross beyond the base . By other side if price consolidate a lot in a strong supply level and slowly start to break the zone keep in mind that the price can slide up and totally invalidate the supply zone . make sure to only trade the first retest of the zone. Never trade MULTIPLE retests. remembers big players that entered in the zone that you sold don't want to see price crossing beyond the area.
  
  ❗Watch out for the big time frames trend
  
  I will leave few examples in the update section
  
  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!

تعليق:

example