YT YouTube2Text

YouTube2Text → Transcripts → Become a Supply & Demand 'SNIPER'🔥 | Uninterrupted Supply & Demand Training🤯 | Premium Course

Become a Supply & Demand 'SNIPER'🔥 | Uninterrupted Supply & Demand Training🤯 | Premium Course — Transcript

by Fortune Talks · 9,959 words · 1,354 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:03hey guys welcome back to the channel
0:07supply and demand is one of the most
0:09popular trading systems among Traders it
0:12can be regarded as one of the most
0:14profitable strategies that one can use
0:16to trade the market if done right as you
0:19all know the stock market is where
0:21traders buy and sell assets the movement
0:24of the prices is due to supply and
0:26demand forces now once you understand
0:28the Dynamics of these two forces namely
0:31supply and demand you will be able to
0:33anticipate almost every price movement
0:35on any price chart you will be able to
0:38track the smart money without doing
0:40extensive quantitative analysis and
0:42crunching all those data in your Excel
0:44this video aims to give you all the
0:47necessary tools you will need to master
0:49supply and demand in the market this
0:51topic will have two video paths in this
0:53video you will learn the core ideas on
0:56how to identify draw and trade market
0:58imbalances like professional Traders and
1:01in the upcoming video we will learn how
1:03to filter supply and demand zones using
1:06odd enhancers which will help you
1:07eliminate low probability zones and keep
1:10only those with high odds of success now
1:13the objective of this video is to help
1:15you implement this particular trading
1:17concept correctly so that you can become
1:19profitable in the long run now the video
1:22will cover the following topics we'll
1:24start with what exactly is supply and
1:27demand and we will understand what a
1:30market balance and imbalance is then we
1:32will talk about how to identify supply
1:34and demand zones in the chart and what
1:37are the different structures of supply
1:39and demand zones that you will see in
1:41the chart then we will learn how to draw
1:43the supply and demand zones and how to
1:45trade these zones and finally we will
1:47identify the supply and demand curves
1:49and also learn about why it is important
1:51to identify the curve in the first place
1:54so without wasting any time let's jump
1:56right on it so what exactly is supply
1:59and demand the supply and demand concept
2:02states that if the supply of a stock or
2:04a commodity is high and its demand is
2:07low this will generate excess Supply
2:09which will drive the prices down and if
2:12the supply of a stock or commodity is
2:14low and the associated demand is high
2:16then this will create a scarcity in the
2:19supply which will push the prices even
2:21higher for example during times of
2:23uncertainty and fear similar to one with
2:25Ukraine Russia War the investors will
2:28reduce their exposure in the equity
2:30markets and start buying safe haven
2:32currencies or they turn to low risk
2:35investment options like gold Convent
2:37bonds Etc to protect their investment so
2:40in such a situation the demand for these
2:42asset classes like gold and Safe Haven
2:45currencies will drive their prices even
2:47higher another example is when the fed
2:49or the Federal Reserve decides to
2:51increase the interest rates what it does
2:53is that it will make the US dollar more
2:56attractive to the investors because of
2:57the The increased interest yield this is
3:00also known as a carry trade where
3:02traders buy the currencies with high
3:04interest rates and sell those currencies
3:07with low interest rates we have seen
3:09this recently when Indian rupee traded
3:11against USD at an all-time high now
3:13having understood the supply and demand
3:15concept we need to Define supply and
3:17demand zones and understand how prices
3:20moves on the chart basically a supply
3:23zone is located above the current price
3:25where there is a strong selling interest
3:27at a supply Zone sellers exceeds buyers
3:31and price moves down as unfilled orders
3:34get absorbed so when price reaches this
3:36level or Zone the orders get filled and
3:39the prices starts to move down and
3:41Traders are usually selling at these
3:43Supply zones and as you can see on the
3:45chart the price rallies to a certain
3:47level or a Zone then it pauses for a
3:50little time and then retraces back down
3:52so as long as unfilled orders are
3:55sitting in this Zone prices will keep
3:57coming back to the supply zone until all
3:59these orders are filled now talking
4:02about a demand Zone a demand zone is a
4:04price area below the current market
4:06price where there is a strong buying
4:08interest and at the demand Zone the
4:10buyers exceeds the sellers and the
4:12prices goes up as unfilled orders get
4:15absorbed so we can see a lot of buying
4:17interest in the demand Zone this is most
4:19likely caused by a large number of
4:21buying orders at that level and the
4:23Traders are buying at demand zones most
4:26often when the price reaches the demand
4:27Zone some of these orders get executed
4:30and what you will see in the chart is a
4:32sharp move towards the upside as these
4:34orders get filled now when it comes to
4:36trading the market many Traders rely
4:39heavily on technical indicators and
4:41Market sentiment to spot the shift in
4:44momentum while there are other traders
4:45who simply trade the market imbalances
4:48by searching for supply and demand zones
4:50now this term is very important in
4:53Balance I will talk about it in a short
4:55while now these songs that I have
4:57discussed are actually price levels
4:59created by Banks and institutions where
5:02unfilled orders are waiting to get
5:04filled now the whole concept of supply
5:06and demand is centered around finding
5:08the smart money orders on a price chart
5:10it is simply because they have the power
5:13to move the prices and they are the ones
5:15you should trade with
5:18the basic pattern associated with stock
5:20market is balance imbalance balance
5:23imbalance Etc and the market trades
5:25between an established excessive level
5:28until it trades above the high of the
5:30excess that is a breakout above the
5:32resistance level or it trades below the
5:34law of the excess that is a breakdown
5:36below the support level now it may seem
5:39confusing but we will clear it out as we
5:41move further in this video so talking
5:43about a balance area if the market is
5:46balanced it means that there are equal
5:48amounts of buying and selling activities
5:50and the prices keep moving up and down
5:53within a particular sideways range now
5:56when it comes to an imbalance area it is
5:58when the buyers or sellers are in
6:00control and the market is imbalanced and
6:03it will move in the direction of the
6:05predominant players so if the sellers
6:07are in control the market will move down
6:09and if the buyers are in control the
6:11market will move up now to understand
6:13this concept of balance and imbalance
6:16let's move to the chart and see how we
6:18can apply these key points as you can
6:20notice in the chart the blue colored
6:22boxes show balanced areas and these
6:25areas are areas where both buying and
6:27selling activities occur at the same
6:28time or simply the supply is equal to
6:31the demand because both the buyers and
6:34sellers are comfortable around this
6:36particular price range and you can
6:38notice the price move horizontally or in
6:40a sideways range now once the market
6:43moves from a balanced state to an
6:45imbalance State the price leaves the
6:47area with large candles and this
6:50represents an imbalance which means that
6:53one of the players either the buyers or
6:55the sellers exceeds or dominates the
6:57other so on the chart we can see that
7:00the sellers exceeds the buyers and the
7:02prices drop with a very quick momentum
7:04and with strong candles once again the
7:07market enters a balanced date waiting
7:10for the price to take a directional move
7:12to either the upside or the downside
7:14area and this cycle will continue over
7:16time so in general the size title of the
7:18market is associated with balance
7:21imbalance balance imbalance Etc so in a
7:24supply and demand strategy we will be
7:27focusing on sporting these areas of
7:29balance the reason being we want to
7:31place our buy or sell orders in these
7:34areas and we want to profit from the
7:36imbalance that will move the price in a
7:38directional point of view but in order
7:41for you to trade the market imbalances
7:43you first need to identify the supply
7:45and demand zones correctly and to do
7:47that there are a set of rules that you
7:49have to follow that will help you find
7:51these zones on any assets that you want
7:53to trade but before that let me talk
7:56about the different patterns associated
7:58with this strategy that we need to be
8:00aware of actually there are two types of
8:02structures or patterns that we need to
8:04learn the first type is reversal
8:06patterns and the second type is
8:08continuation patterns so when it comes
8:10to reversal patterns as you may already
8:12know reversal patterns are chart
8:14patterns that are formed when the trend
8:17reverses its direction that is from an
8:19up to down or a down to uptrend now when
8:22it comes to reversal patterns we have
8:24two structures the first one is a drop
8:26base rally structure in this structure
8:29the price is moving in a downtrend
8:31creating a drop in price which is
8:33followed by a base structure and then a
8:36rally in the price towards the upside
8:37the second structure associated with
8:40reversal pattern is the rally base drop
8:42structure so in this structure the price
8:45rallies up and it creates a base
8:47structure and it is followed by a big
8:49drop in price towards the downside
8:51actually these reversal patterns are
8:53very strong and the price tends to
8:55respect them over time the second
8:57category includes continuation patterns
8:59which actually signals a trend
9:01continuation here also two price
9:03structures are formed the first type is
9:05the drop based drop structure in this
9:08structure the price drops and then it
9:10forms a base structure and then it
9:13continues moving down breaking through
9:15the base and second structure is a rally
9:17base rally here the price rallies up at
9:21first and then it forms a base structure
9:23which will then continue moving a
9:25forming another rally now these
9:27continuation patterns are found inside
9:29the trend and most of the time when the
9:31price tests these structures the price
9:33tends to break through them and that is
9:35why we will focus only on reversal
9:38patterns because they have good odds of
9:40success compared to the continuation
9:42patterns now with that information let
9:44us move on to identifying the supply and
9:46demand zones on the chart following a
9:48simple three-step process the first step
9:51is to identify the current market price
9:53level so this is the easiest step all we
9:56have to do is to start off by
9:57identifying the current market price the
10:00second step is to look to the left from
10:02the current market price to find
10:03extended range candles in the last drop
10:06or rally so in this step we need to find
10:09ERC type of candles so ERC stands for
10:12extended range candles and it is
10:14actually a candle that has a very large
10:16body with little or no weeks so if the
10:19body's length is equal to the length of
10:21the Wicks it is not actually an ERC
10:24candle and then we have to find the
10:26origin of the move so once we have
10:28identified an ERC type of candle we have
10:31either a drop or a rally in price now we
10:33have to find the origin of that move the
10:36origin will actually from the base of
10:38our supply or demand Zone and the base
10:40is what we require to draw the zones as
10:43we will see later on this video now let
10:45us look an example of the entire
10:47identification process so in this
10:49example we will start at the current
10:51price and we will look to the left to
10:53find a drop or a rally in price with at
10:56least one ERC type of candle and once we
10:59identified an extended range candle we
11:01will have to identify the origin of the
11:03move the origin is actually what we call
11:05the base now that we know how to
11:08identify the supply and demand zones we
11:10need to learn how to draw our supply and
11:12demand zones but before that since the
11:15market these days is highly volatile and
11:17on most days we see the market gaps up
11:20or down in the morning it is important
11:22to include gaps in our training Market
11:25gaps are extremely useful price action
11:27structures that enables us to identify
11:30the supply and demand zones so they can
11:32act as if they are indicators of the
11:34market imbalances as they indicate
11:36clearly where the market is going so
11:38that we can trade accordingly so from my
11:40point of view gaps are actually leading
11:42indicators for trading supply and demand
11:44imbalances so I have made a video on how
11:47to trade gaps from a price action
11:49perspective in my free Price action
11:51trading course you can check that out to
11:53know in depth about Market gaps so a
11:56general reminder a gap is an empty space
11:58between two candlesticks where the price
12:00either Rises or falls from the previous
12:02candles close with no trading occurring
12:05in between them what this represent is a
12:07big supply and demand imbalance where
12:10either the supply exceeds the demand or
12:12the demand exceeds the supply this is
12:15extremely important for us as it shows
12:17exactly where the market imbalance is
12:19located on a price chart so for your
12:21information a gap up is a gap that
12:24occurs when the lowest price of a candle
12:26is above the highest level of the
12:28previous candle similarly a gap down
12:31develops when the highest price of a
12:33candle is below the lowest price of the
12:35previous candle now when we talk about
12:37Gap fill a gap is considered to be
12:40closed or filled when the price comes
12:42back and fills the entire range of the
12:44Gap and once the price fills the Gap it
12:47generally reverts to the direction of
12:49the prevailing Market Trend now based on
12:51the types of gaps we can anticipate
12:53either the beginning of a new trend or a
12:55reversal of a previous Trend so in
12:58supply and demand there are actually two
13:00types of gaps that are important to us
13:02number one is the professional Gap and
13:04number two are the novice caps now
13:06talking about the professional Gap it is
13:08a gap that occurs in the opposite
13:10direction of the prevailing Trend take a
13:12look at this example we have a
13:14professional Gap that is formed in the
13:16opposite direction of the prevailing
13:17trend and the price retraces back to
13:20fill the professional Gap and we can see
13:21the price reverses up from there now
13:23this kind of Gap signals a market
13:25imbalance is created by professional
13:28Traders and it gives us a great demand
13:30Zone to trade once the price returns to
13:33fill the Gap now the second category of
13:35gaps are novice Gap it is a gap that
13:37occurs in the direction of the
13:39prevailing Trend itself so on a wise cap
13:41tends to form at the end of the trend
13:43which will in turn lead to a reversal of
13:45the trend for example in this chart it
13:48shows how the noise gaps are formed on
13:50the chart you can see the price rallied
13:52creating a gap in the same direction of
13:54the prevailing Trend but then suddenly
13:56it reverse back down and as we have
13:58mentioned now ice caps are located at
14:00the end of the move and in the chart we
14:02can clearly see that the move ended and
14:04the price moved in the opposite
14:06direction we can also notice that there
14:08is a Zone where the reversal actually
14:09started now it is very important to
14:11understand these two types of gaps when
14:13trading supply and demand because they
14:15give us important piece of information
14:17as to where the market is willing to go
14:20next and finally we will now learn how
14:22to draw the supply and demand lines on
14:24the chart in order to draw the supply
14:26and demand zones we use two lines that
14:29we place around the base of the zones
14:31the first line is called as a distal
14:33line and the second line is called as a
14:35proximal line as I have mentioned both
14:37these lines are placed around the base
14:39to form our supply and demand zones the
14:42digital line is the outer line of the
14:44Zone which is placed away from the
14:46current price and the proximal line is
14:48the Inner Line Of The Zone which is
14:50placed near the current price now let me
14:52talk about a few things that you should
14:54keep in mind when drawing the supply and
14:56demand zones the first and foremost
14:58thing is that you should have an idea
15:00about the structure of the base the base
15:02must actually have less than six candles
15:04and the candle's body should be less
15:06than or equal to 50 percentage of the
15:09candles total range and the price
15:11leaving the base should have at least
15:13two extended range candles and the base
15:16should not have the following things
15:18that is it should not have more than 6
15:20candles it should not only have doji
15:23candles and we won't accept candles with
15:25very long tails or Wicks and we don't
15:28accept tear step candles in our base so
15:31there are reasons for this for example
15:33if the base has more than six candles or
15:35only has doji candles we ignore it the
15:38reason being more than six candles and
15:40only doji candles can simply mean that
15:42the supply is equal to the demand and
15:45most of the orders are getting filled
15:47now having less than 6 candles and not a
15:49lot of doji candles shows a great
15:52imbalance and more unfilled orders are
15:54still waiting for the price to retrace
15:56back and fill them so the Zone will
15:58remain valid for them now what will
16:00happen if the base has candles with very
16:02long tails or Wicks it simply means that
16:05the level is a reaction to the previous
16:07Supply or demand zone now these Tales
16:09shows that the market participants went
16:11all the way down to look for unfilled
16:14orders and they kept going back and
16:16forth until they got enough trying to
16:18push the prices higher so most of the
16:21liquidity in that area would have
16:22already been absorbed also a base
16:25structure that has a stair-step candles
16:27is actually a low probability Zone what
16:30I mean by a stair stepping structure is
16:32that one candle is closing below the
16:34close of the previous candle in case of
16:36a supply Zone and one candle is closing
16:38above the close of the previous candle
16:40in case of a demand zone now when it
16:42comes to drawing supply and demand zones
16:44there are a lot of different options to
16:46choose from depending upon a person's
16:48risk appetite in general there are three
16:50methods of drawing your proximal and
16:52digital lines based on your risk
16:54appetite and how conservative are you in
16:56your trading I will show you all the
16:58three methods that you can use to draw
17:00the supply and demand zones properly and
17:02you can choose the right method that
17:04better suits your trading according to
17:06your risk tolerance we have already
17:08discussed that Supply zones can either
17:11have a rally based drop or a drop based
17:14drop structure to correctly identify a
17:16supply Zone we have to start and leave
17:18from the current market price to find
17:20strong bearish candles with large bodies
17:23or bearish ercs in this chart we can see
17:26the price rallied up in a nice uptrend
17:28and it posed for a short time creating a
17:30nice base structure with a few candles
17:32then the price dropped creating long
17:35bearish ERC scandals conforming to a
17:38strong Market imbalance around this
17:40Supply Zone and once you identify the
17:43zones you want to trade you can now draw
17:45your lines around the base or the origin
17:47of the move now as I have mentioned
17:49there are three ways of drawing your
17:51supply Zone the first is the
17:52conservative method where the digital
17:54line is placed at the highest week of
17:57the base and the proximal line is at the
17:59lowest of the body in the pacing
18:01structure the second method is the high
18:03risk method where the digital line is
18:06placed at the highest weak of the base
18:08and the Proxima line is placed at the
18:10lowest week of the basing structure now
18:12if you decide to include both the high
18:14and low of the week you have in turn
18:16increased your risk by making your stop
18:19losses larger than it should be now the
18:21third method is the lowest method where
18:23the digital line is placed at the
18:25highest week of the base and proximal
18:27line is drawn at the highest body in the
18:29basing structure so in a similar manner
18:32you can draw the lines on a draw based
18:34drop structure but Frankly Speaking I am
18:36not a great fan of it so I leave it up
18:38to you for the study now as the price
18:40keep retracing back to the supply Zone
18:42we can take advantage of these three
18:44tracements to place our trades around
18:46the base area you will notice how the
18:48price retraces up and drops as soon as
18:51it approaches the supply Zone without
18:52even piercing the proximal line this
18:54means that large piles of unfilled
18:57orders are placed around the supply zone
18:58now the idea is to place your orders and
19:01wait for the price to return and Trigger
19:04them now in order to identify a demand
19:06Zone we need to start from the current
19:09market price and move to the left to
19:11find a nice rally in the price or a
19:14group of bullish ERC candles and also a
19:17base with less than than 6 Candles now
19:19we are going to do the same thing as we
19:21did for Supply zones but in the opposite
19:23manner we will start by identifying the
19:25basic structure to draw our Zone then we
19:28draw the proximal line and the digital
19:29line using the three methods of drawing
19:32in the conservative method the digital
19:34line is placed at the lowest of the week
19:36of the base and the proximal line is
19:38placed at the highest body in the basing
19:41structure in the higher risk method the
19:43digital line is placed at the lowest
19:45week of the base while the proximal line
19:47is placed at the highest week of the
19:49basing structure and finally in the low
19:51risk method the digital line as usual is
19:54placed at the lowest week of the base
19:56while the proximal line is placed at the
19:58lowest body in the basing structure now
20:01as the price keeps retracing back up to
20:04this demand Zone we can take advantage
20:06of these retracements to place our
20:08trades around the base area and you will
20:10notice how the price retraces down and
20:13rallies as soon as it approaches the
20:15demand Zone without even piercing the
20:17Proxima line this means that a large
20:19piles of unfilled orders are placed
20:21around this demand Zone and the idea is
20:23to place your orders and wait for the
20:25price to return to trigger then and if
20:27you decide to include only the highest
20:29weeks for Supply Zone and only the
20:31lowest weeks for the demand Zone we are
20:34decreasing your odds of getting your
20:35orders filled by the market price now
20:38that is why we include a second line
20:40which largely improves our roads of
20:42entering into a position as well as
20:44keeping an eye on the risk factor also
20:47again when drawing supply and demand
20:49zones you have to keep in mind both your
20:51risk exposure and your roads of making
20:53money now when I talk about gaps gaps
20:56are actually strong price action
20:57structures so when it comes to drawing
20:59supply and demand zones that have gaps
21:01it is important to know where we need to
21:04place our digital and proximal line now
21:06as a rule of thumb we always throw our
21:09zones at the origin of the Gap and not
21:12after it that is we place the digital
21:14and proximal lines at the highs and lows
21:16of the previous days closing prices
21:18accordingly now we come to the most
21:21important part how do we trade supply
21:23and demand zones we buy at the demand
21:25zones and we sell at the supply zones
21:28this strategy is pretty straightforward
21:30all you have to do is to identify fresh
21:32supply and demand zones to trade then
21:35place your limit orders either buy or
21:37sell orders at or beyond the proximal
21:39line and set your stop losses at or
21:42beyond the digital line and then wait
21:44for the price to return to your supply
21:46or demand Zone to trigger your orders
21:48now take a look at this chart for the
21:50supply Zone the price rallied up post
21:53for a little while and dropped with big
21:55ERC candles so we have a great imbalance
21:58at this price level we draw our supply
22:01Zone and we wait for the price to come
22:03back and re-test this Zone and we also
22:06place our order when the price comes
22:08back the second time into the Zone our
22:10sell order gets executed and as you can
22:12see it will be a great success now take
22:15a look at another example where the
22:17price drop then pose for a while and
22:20rallied again with big ERC candles
22:22thereby creating a demand Zone on its
22:25way up now we place our buy orders in
22:27the proximal line expecting the price to
22:29return back to the demand Zone to absorb
22:32the unfilled orders now each time the
22:34price tested our demand Zone it triggers
22:37our buy orders we can see how the price
22:39is attracted to the Zone like a magnet
22:42now there are times when you're not sure
22:44if the Zone will yield a successful
22:46trade so what you can do is to wait for
22:49the price to test the zone and give you
22:51some bullish or bearish evidence before
22:53placing your order by that way you could
22:56decrease your chances of entering a
22:58losing trade again I prefer reversal
23:01structures for trading because they are
23:02powerful and the chances of success are
23:05high compared to the continuation Trend
23:07structures
23:09we will talk about the supply and demand
23:11curves how to identify Supply supply and
23:13demand curves and how to trade
23:15profitably using the curve so I need at
23:18least 500 likes on this video because it
23:20takes a lot of time and effort to
23:22provide quality content free of charge
23:24and if you are new to the channel make
23:26sure to subscribe and enable the Bell
23:28notification so that you won't miss out
23:30on any upcoming videos okay then let's
23:33get started
23:36supply and demand are the two Dynamic
23:39forces that establish market prices
23:42these forces are driving prices up or
23:45down based on who's in control over the
23:47market for instance if Supply exceeds
23:50the demand prices tends to go down as
23:53more sellers are interested in selling
23:55instead of buying the asset on the
23:57contrary if the demand exceeds the
23:58supply prices tend to go up as more
24:01buyers are interested in buying instead
24:03of selling the asset or stock so the
24:06curve is basically a tool that Traders
24:08can use to determine whether the price
24:10is located near a higher time frame
24:12Supply or demand zone now this is very
24:14important as we want to buy low and sell
24:17high in order to make a profit now you
24:20may ask me why I should take the trouble
24:22of drawing the curve when I can just
24:24trade using the zones and odd enhancers
24:27to get a high probability trading setup
24:29as I have mentioned just now the reason
24:31why we determine the curve is to avoid
24:33buying high and selling low or in other
24:36words to avoid avoid buying at the
24:38supply zone or selling at a demand zone
24:40now this step is very crucial and
24:42trading the markets using supply and
24:44demand because our goal is to trade with
24:46the trend and not against it so let's
24:49start off by identifying the supply and
24:51demand zones first to identify the
24:53supply and demand zones we will use yet
24:55another simple three-step process first
24:58we will use a larger time frame to draw
25:00our zones in control and then determine
25:02the location of the current market price
25:04on the curve so the first step is to
25:07choose your higher time frame as you may
25:09know by now that multiple time frame
25:11analysis or multi-time frame analysis is
25:13a method of analyzing at least two or
25:16three different time frames of a
25:18particular stock or an instrument to
25:20construct a bigger picture of the long
25:22term Trend now the whole idea is to
25:24trade with the trend and the multi-time
25:26frame analysis allows us to align our
25:29trades with the higher time frame Trend
25:30now always remember that the larger the
25:33time frame the better the chances of a
25:35successful trade I have already made a
25:38video on the selection of time frames
25:40and multiple time frame analysis so if
25:42you want you can check that out now in
25:44that video I stated a rule on how to
25:46select time frames based on trading
25:48Styles the rule says that when you
25:51choose your time frame combination the
25:53higher time frame needs to be at least
25:54three to six times greater than your
25:57intermediate time frame and so on for
25:59example if you want to take a swing
26:01trade your higher time frame would be a
26:03weekly chart the intermediate time frame
26:05would be a daily chart because there are
26:075 days in a trading week and when
26:09considering a factor of 5 the time frame
26:12becomes one day the even lower time
26:14frame would be the one hour chart
26:15however in this video we are going to
26:18take a positional trading approach and
26:20we are going to use the monthly chart as
26:22our higher time frame the weekly chart
26:24will be our intermediate time frame and
26:26finally the daily chart will be our
26:28lower time frame now you can use any
26:31combination of time frames based on the
26:33type of trading style that you follow
26:34the Second Step however is to add
26:36identify the supply and demand zones
26:39under control now the idea of the second
26:41step is to determine who's in control of
26:43the market is it the buyers or the
26:46sellers now after we open the monthly
26:48chart we have to start by locating the
26:50current market price then we need to
26:52identify the closest supply and demand
26:54zones to the current market price in
26:57this chart we can clearly see that the
26:58price is near the higher time frame
27:00demand zone now take a look at another
27:02chart where the current price is located
27:04almost in the middle of the supply and
27:06demand Zone under control the reason why
27:08we look for the location of the price
27:10with respect to the zones is that we can
27:12still take a trade entry as long as the
27:15longer time frame gives us a good profit
27:17margin to make money otherwise we don't
27:19generally look to take a trade in the
27:21middle of the zone and one of the
27:22reasons being the difficulty in the
27:24placement of a proper stop loss now
27:26moving on the third and final step
27:28drawing the curve so the third step is
27:31to divide the area between the proximal
27:33lines of the supply and demand zones
27:34under control into three equal areas now
27:37the idea is that after identifying the
27:39closest supply and demand zones you have
27:41to divide the distance between them by 3
27:44and we will get a high area a low area
27:46and an equilibrium area there are two
27:49methods to divide the curve area the
27:51first option is simply to count how many
27:53points there are between the two
27:55proximal lines of the zones which are
27:57under control and divide them by three
27:59now the second option is to use a
28:01Fibonacci retracement tool to identify
28:04the supply and demand curves without
28:05having to divide the area manually to
28:08draw the curve areas using the Fibonacci
28:10tool you have to modify the settings to
28:12get exactly three equal areas on the
28:14chart so all you have to do is to change
28:16the Fibonacci levels to the following
28:18that is zero percentage 33 percentage 66
28:22percentage and 100 percentage and you
28:24can uncheck all other levels now that
28:27you have changed the Fibonacci settings
28:28you can draw the curve from the proximal
28:30line of the supply Zone to the proximal
28:32line of the demand Zone the Fibonacci
28:34tool will divide the area into three
28:36equals phones automatically I hope
28:39things are clear now you may ask me why
28:41is it important to identify the curve in
28:44the first place now this is actually
28:46what separates the winners from losers
28:48in the big game the professional Traders
28:51know that when the price is high on the
28:53curve they need to sell to the retail
28:55traders who are actually excited to see
28:57an uptrend move continue so the retail
28:59Traders jump onto the trade and start
29:01placing buy orders and professional
29:04Traders actually use this High liquidity
29:06provided by the retail traders to
29:08actually short the market and move the
29:10prices even lower now similarly when the
29:13retail Traders see the prices dropping
29:15very rapidly they think this is a great
29:17chance to short the market once again
29:19the professional Traders jump on to the
29:22opportunity to place their buy orders as
29:24the price enters new loader trees on the
29:27curve signaling a nice bullish reversal
29:29to the upside this is why it is
29:32important to identify the curve before
29:34placing any order now let's move to the
29:36more most important section that is how
29:39to trade using these curves so on the
29:42larger time frame that we have analyzed
29:43the curve serves as an indicator as to
29:46whether the price is high low or in the
29:48Middle with respect to the supply and
29:50demand zones in control now based on
29:52this information we can decide whether
29:54to buy sell or do nothing there can be
29:57different trading scenarios based on the
29:59curve when the price is very high in the
30:01curve usually inside the supply Zone our
30:04trading bias is to sell only now if the
30:07price is high in the curve that is just
30:09below the supply Zone but higher than
30:11the equilibrium Zone we will still look
30:13to sell only on the opposite when the
30:15price is very low in the curve typically
30:17inside the demand Zone we will look to
30:20buy only and as you may have already
30:22guessed when the price is low in the
30:24curve that is just above the demand Zone
30:26but lower than the equilibrium area we
30:28will still look to buy now what happens
30:31when the price is at the equilibrium
30:33area then we will have two options that
30:35is either to trade with the prevailing
30:37Trend or do not trade at all now it
30:40actually depends on how aggressive you
30:42are with your trading style now let's
30:44put everything together and see how we
30:46can identify the supply and demand
30:47curves and plan our trade accordingly so
30:50the first thing we do is to begin with
30:52the larger time frame to determine the
30:54location of the current market price
30:56within the supply and demand zones in
30:58the control this will actually use the
31:00framework to look for trading
31:01opportunities once we have identified
31:03the supply and demand zones in control
31:05you can use the Fibonacci tool to divide
31:08the area into three equal levels or
31:10zones as shown in the monthly chart so
31:13as a general rule of thumb we buy when
31:15the price is low on car and at the
31:17demand Zone and we sell when the price
31:19is high on the curve and at the supply
31:21zone so when the price is at an
31:23equilibrium we either trade with the
31:25prevailing Trend or we don't trade at
31:27all now in the chart the current market
31:29price is located between the low and the
31:31equilibrium areas of the curve which
31:33means that our bias is only to buy as
31:36long as the trend is up but when we zoom
31:39in on the weekly chart we can observe
31:41how the price broke the trend line and
31:43created a new Supply Zone the price then
31:45moved down and created a new demand Zone
31:48which is actually nested inside the
31:50monthly demand zone so what we have on
31:52the monthly chart is that the price is
31:54at the low or the equilibrium area and
31:56the curve and the overall Market is
31:58uptrending but on the weekly chart the
32:00price is moving sideways with a weekly
32:02demand Zone nested inside a monthly
32:04demand zone so if you think of selling
32:07when the price test the weekly Supply
32:08Zone then you are actually trading
32:10against the higher time frame Trend
32:12which is not our objective so as we said
32:14in the beginning the higher time frame
32:16always prevails hence we should avoid
32:19selling from the weekly Supply Zone
32:21because the trend is up trending and on
32:23top of that the reward to risk is not
32:25satisfactory instead the ideal thing to
32:28do is to wait until the prices hit the
32:30monthly or the weekly demand Zone and
32:32then look to go along at this level the
32:35buyers will be interested in buying more
32:37and hence pushing the prices higher and
32:39as we can clearly see the prices went
32:42back down to the weekly or monthly
32:43demand Zone and then rallied to the
32:45monthly Supply Zone which actually
32:47provided a low risk High reward trade so
32:50as long as we trade with the long-term
32:52Trend we are safe now let's take a look
32:55at another example on the monthly chart
32:57the current market price is high on the
32:59curve this means that our bias is only
33:01to sell from the Fresh Supply zones on
33:04Lower time frames now zooming in on our
33:06weekly chart we can observe that the
33:09price is moving up and creating new
33:11higher highs and new higher lows we can
33:13also draw a trend line connecting the
33:15two higher lows together which indicates
33:17that the trend is towards the upside on
33:20the same weekly time frame chart we will
33:22draw our supply and demand zones to
33:24align with our views with the monthly
33:26chart which is the higher time frame
33:27here so when we do that we get a weekly
33:30Supply Zone which is nested inside the
33:32monthly Supply Zone this means that this
33:35weekly Supply Zone will have a higher
33:37probability of success because it
33:39overlaps with a higher time frame zone
33:41now the same thing applies to the demand
33:43Zone down at the bottom of the chart now
33:46these nested or overlapping zones have a
33:48higher probability of success because
33:50the higher time frame zones are more
33:52powerful than the lower ones now that we
33:55know the price is high in the curve and
33:57the trend is up we need to find a supply
33:59Zone to place our entry and stop loss
34:02accordingly so we don't just buy in the
34:04demand Zone because the price is high in
34:06the curve also we have to notice that
34:08the price is near the monthly Supply
34:10Zone which means that soon the price
34:12will reverse down and Pierce all the
34:14demand zones that are up in the curve so
34:16in order to buy we can either use the
34:18weekly chart or use an even lower time
34:21frame like the daily to find a suitable
34:23entry zone so if the weekly zone is
34:25obvious as in this example we can just
34:28stop our analysis here and place our
34:30entry right at the proximal line of the
34:32weekly Supply Zone but if the weekly
34:34Supply Zone gives us a larger stop loss
34:36that we cannot handle or if the zone is
34:39not giving us a clear entry point then
34:41moving down to a lower time frame is the
34:43ideal thing to do so on the lower time
34:46frame chart we have a nested daily
34:48Supply Zone within the weekly Supply
34:50zone now this has become a high
34:52probability Zone to trade-in you can
34:54place our entry at the proximal line and
34:57place our stop loss above the digital
34:59line to exit the trade we can place our
35:02Target at the opposite demand Zone the
35:04profit margin is good as we have at
35:06least a three to one reward to risk
35:08ratio in this particular trade and as
35:10you can see the price hit her entry
35:12level at the proximal line and dropped
35:15all the way down to our Target giving us
35:17a very good trade from this particular
35:19example you can also notice how the risk
35:22changes from monthly to daily Supply
35:24zones so if you were to trade the
35:26monthly Zone we would have placed a
35:28larger stop loss and the price would
35:30almost appears half of the Zone before
35:32reversing back down compared to the
35:34weekly and daily Supply zones so it is
35:37always a great idea to use multiple time
35:40frames and trade on a particular time
35:42frame that gives you the best trading
35:44setup you can use any set of time frame
35:46as you wish so if you are an intraday
35:48Trader you can use a combination of
35:50daily hourly and 15 minute charts to
35:53conduct the analysis and find the zones
35:55in control draw the curve and identify
35:57if there is a trade opportunity in the
35:59direction of the existing Market trend
36:04in the first part of the video series we
36:06discussed the supply and demand zones in
36:09Greater detail from identifying drawing
36:11and trading these zones in this video we
36:14will fine tune all what we have learned
36:16to make a proper setup with a higher
36:19probability of success and a better risk
36:22management in that sense we will talk
36:24about the odd enhancements and the
36:27scoring of these supply and demand
36:29levels so in order to trade the market
36:31with supply and demand strategy you must
36:34use some essential order enhancers to
36:36help you select only those zones that
36:39have a higher probability of success
36:41remember that not all supply and demand
36:43zones work you can't just buy every
36:45demand Zone and sell every Supply zone
36:48for that you need to learn how to filter
36:50them properly using odd enhancers to
36:53evaluate your zones so basically there
36:55are 21 ordin answers that have to be
36:57considered but all of them are not
36:59important to make a note of but I will
37:01still post a link in the description of
37:03this video if you want to learn more
37:05about it in this video however I will
37:08talk about 5 important odd enhancers
37:10that you can make use of this will
37:12definitely increase your odds of success
37:14and minimize your potential losses in
37:16the market if you have been trading the
37:18markets using supply and demand for a
37:21while or you have just started with it
37:23you probably found yourself stuck not
37:25knowing which zone to choose especially
37:27if you have at least two zones which are
37:29very close to each other and you know
37:31that it's either this one or that one
37:33but which one to choose and based on
37:35what criteria you make your decision to
37:38stick to one often this will lead you to
37:40enter a trade earlier than you should or
37:43you might even place an order in a zone
37:45that the price won't visit at all this
37:47can really be frustrating because
37:49sometimes you have to wait for a long
37:50period of time for the price to return
37:52to your Zone and Trigger your orders by
37:55choosing the wrong supply and demand
37:57zones you are leaving some of the good
37:59trades on the table so how can you
38:01filter out these supply and demand zones
38:03you have identified fight so that you
38:05only pick those which presents a high
38:07probability of success remember the goal
38:10is always to stack the odds in your
38:12favor and not the other way around the
38:14solution is to have a scoring system or
38:17a filtering system now the scoring
38:19system is based on analyzing four or
38:21five major odd enhancers that I will
38:24discuss and to give a final score to
38:27each one of them so that it all adds up
38:29on a scale of 1 to 10 in total and this
38:32system will help you score the supply
38:34and demand zones to let you decide which
38:36ones to trade okay now let us visit each
38:40of the five odd enhancers one by one and
38:42set a criteria for scoring on each one
38:46the first and foremost code enhancer is
38:49the strength of price move from the base
38:51now the first thing to look at is the
38:53strength of the move out of the origin
38:55or the basing structure in other words
38:57we look at how the price leaves the
39:00supply or demand Zone was it actually a
39:02strong move or a weak move a strong move
39:05is one that is comprised of big candles
39:07and sometimes even gaps are formed as
39:10the price leaves the Zone on the
39:12contrary a weak move has many small
39:14candles and the drop or the rally
39:16doesn't go far from The Zone itself or
39:19simply the price action is weak in this
39:21chart you can see that the price left
39:23the supply Zone with strong bearish
39:25candles to the downside making them very
39:28strong zones to trade you will also
39:30notice how the price did not go all the
39:32way up to test the supply zones to move
39:35down in a strong manner this shows how
39:37great an imbalance is at this Supply
39:39zone now let us take a look at an
39:41example where the move out of the base
39:43is weak this demand zone is considered
39:46week because the price left the song
39:48with very small candidates the move out
39:51of the demand zone is actually weak and
39:53as a Trader you should avoid trading
39:55such weak zones because the price will
39:57ignore it and most probably the price
40:00will pass through it the next time it
40:02test it in short if the price leaves the
40:04Zone with long candles this means that
40:07the imbalance is strong and more
40:09unfilled orders are still available at
40:11their Zone but if the move from the zone
40:13is weakly represented by small candles
40:16this means that probably no more
40:18unfilled orders are still there for us
40:19to trade now based on this first order
40:22enhancer we can give a score from 0 to a
40:25maximum of two points so when we have a
40:28supply Zone where the price leaves the
40:29Zone with big candles this Zone shows a
40:32high probability of success because of
40:34the strength of the price move out of
40:36the basing structure now the score we
40:38will give to this zone is actually two
40:40points which is the maximum score and
40:42you will notice how the price drops when
40:44it returns to test the Zone again now
40:46when it comes to a weak Supply Zone
40:48where the price left the supply Zone
40:50with weak and small candles what this
40:53means is that there are no more unfilled
40:55orders that are left to be traded and
40:57the sellers are losing interest in
40:59selling at this price level soon they
41:01will be outnumbered by the buyers who
41:03will take the control of the market and
41:05move the prices beyond the supply zone
41:07so this Zone will attract a score of
41:10zero based on our first criteria now the
41:13same is applicable to the demand zones
41:15also now coming to our second odd
41:17enhancer that is the time spent at the
41:20base here we will look at how many
41:22candles are in the basing structure in
41:25general the best zones have between one
41:28two a maximum of Six Candles in the base
41:30now Beyond six scandals the zone is
41:33considered weak and the price might
41:34ignore it the next time and therefore it
41:37can result in a losing trade so this
41:39clearly means that if the imbalance is
41:42important enough to generate a
41:43directional move the price has to spend
41:45less time at the basing structure that
41:48is why we should limit the number of
41:50candles between 1 to a maximum of 6 at
41:53the pace now take a look at this chart
41:55we have a rally based drop structure but
41:58with only one basing candle at the
42:00supply Zone this is a very strong basing
42:03structure so we will give a maximum
42:05score of 2 for this Supply Zone while in
42:08case of this demand Zone the price spend
42:10a little more time and created a few
42:12more candles at the basing structure so
42:14we can give a score of 1 to this demand
42:16zone now another thing to consider while
42:18analyzing your basic candles is the
42:20Tails of the Wicks now basing candles
42:22with long Wicks or tails are a sign of a
42:25weak zone so in this example the price
42:28spent too much time at the base creating
42:30more than 6 candles this is a weak Zone
42:33because the price did react but failed
42:36to move higher and finally it went
42:37through the song to look for another
42:39demand imbalance now the score for this
42:42demand zone is therefore zero now let us
42:44move on to the third odd and hand answer
42:46that are fresh zones now a fresh zone is
42:50a supplier demand Zone that the price
42:52has not tested yet the first retracement
42:55tends to be the strongest and the most
42:57reliable one to trade so as a Trader you
43:00should always choose fresh untested
43:02zones to stack the odds in your favor
43:04after a second retracement to the Zone
43:06it is better known to consider it
43:08because there might not be enough Supply
43:10or demand to move the prices as most of
43:13the orders might be absorbed during the
43:15two initial retracements now look at
43:17this chart we have supplies on that the
43:19price has not tested yet these are
43:21actually good zones to short once the
43:23price retraces back to this zone now the
43:25same thing goes for a fresh demand Zone
43:27if the price returns to test it we look
43:29to go long in the first retracement the
43:32price tested the supply Zone and moved
43:34down the same thing happened in the
43:36second and the third retracements but
43:39after the third retracement the price
43:41broke above the supply Zone which
43:43indicates that no more Supply was found
43:45there similarly you can notice how the
43:48price left the supply Zone after the
43:50second and third retracement the
43:52strength of the last two moves are
43:54weakening which in turn signals a
43:56potential shift in the market imbalance
43:58as more buyers are stepping in thereby
44:01creating a breakout Above This Supply
44:03zone now consider another example where
44:06the price broke the demand Zone after
44:08the second retracement you can notice
44:10how the price penetrates deeper inside
44:12the demand Zone with each retracement
44:14this is a very good signal that the
44:17supply zone is no more valid and a
44:19potential breakthrough is expected now
44:21after the second retracement the demand
44:24zone is no longer valid as the market
44:25imbalance shifted from demand to supply
44:28now in terms of scoring a fresh Zone
44:31that has not been tested you can give a
44:34score of Maximum three points this is
44:36the one we need to focus on when trading
44:39supply and demand zones in the market we
44:41need to stack the odds in our favor by
44:43choosing fresh untested zones to trade
44:46now if the price retraces back to our
44:48zone for a second time we can give it a
44:51score of 1.5 points now we can still
44:54consider this Zone but again we will
44:56always be looking for high probability
44:57trading setups now if the price retraces
45:00back again for a third time we will give
45:03it a score of 0 as it has less
45:05probability of success at this point
45:08most of the unfilled orders are already
45:10gone and the price might Pierce The Zone
45:12and move away to find another Supply or
45:14demand Zone the fourth odd enhancer is
45:17reward to risk ratio the reward to risk
45:20ratio as you may already know gives us a
45:22good idea of whether we have a chance of
45:24making money trading on a particular
45:26supply of demand zone or not so we need
45:28to choose those trading opportunities
45:30that offer us at least a three to one
45:33reward to risk ratio a ratio of Threes
45:35to 1 is a perfect ratio because we are
45:38risking one point to gain three times
45:40for example if a trade has a 10 point
45:43stop loss then the target should be at
45:45least 30 points away from my entry point
45:48so if the market does not give you a
45:50three is to one ratio then it is better
45:52to stay away from this trade and we will
45:54look for another opportunity which
45:55offers us a three to one reward to risk
45:58ratio but you can also scale it down if
46:00you want a two is to one ratio is also a
46:02good ratio and the trades could work
46:04just fine but again we are always
46:07looking for high probability setups and
46:09we leave those with a low rate of
46:11success and a one is to one Ratio or
46:13less is considered a known valid entry
46:15since the market does not offer a good
46:17opportunity to make money if the Zone
46:20gives us at least a three to one ratio
46:22we give a score of three points which is
46:25the maximum score to this particular
46:27zone now if the Zone gives you a 1.5 is
46:30to one or a 2 is to one ratio then we
46:32will give it a score of 1.5 points and
46:34finally if the Zone gives us a ratio of
46:371 is to one or less then we will give it
46:40a zero score because we will ignore the
46:42zone and we will wait for another
46:43opportunity now the last and final order
46:46answer that I will be talking about are
46:48the overlapping zones these are also
46:50called as nested zones now the idea here
46:52is to look for overlapping zones from
46:55different time frames for example if you
46:57have a supply Zone on a daily time frame
46:59that is located inside a monthly Supply
47:02Zone this daily Supply zone is
47:04considered strong and it presents a high
47:06probability of success so as a thumb
47:09rule higher time frame zones are much
47:12more powerful than smaller ones so if
47:14your long over time frame zone is nested
47:16inside a higher time frame one it is
47:19actually a strong zone so here in this
47:21example we have a daily Zone indicated
47:24in blue that is nested inside a higher
47:27time frame monthly Supply Zone which is
47:29represented in red but how to find them
47:31and draw them to find the nested zones
47:33you start with the higher time frame now
47:36in this example the higher time frame is
47:38monthly so we draw the monthly Supply
47:40Zone then we will move to the Daily time
47:42frame to look for Supply zones within
47:45the monthly Zone that we we have already
47:46Mar you can also have a daily demand
47:49Zone nested inside a weekly demand Zone
47:51and so on and so forth I hope you get
47:54the basic idea now I won't be including
47:56this odd enhancer in my scoring criteria
47:59because not all levels present such an
48:01opportunity and the chances of missing
48:03out will be higher if we make it a
48:05strict criteria to follow now that we
48:08have a scoring system in place to help
48:10us score the supply and demand zones we
48:12need to interpret the final score to
48:15either execute the trade or wait for
48:17more confirmations now let us say a Zone
48:20has a score of 10 points so a final
48:22score of 10 point mean that we can place
48:25a limit order at the supply or demand
48:27Zone that we want to trade beforehand so
48:29that you will not change your mind for
48:31some reason now this order will get
48:33executed once the price reaches 10
48:35pointer level namely the proximal level
48:37of the Zone but make sure you place the
48:40stop loss order at or beyond the digital
48:42line to protect your position now this
48:45score of 10 shows that the zone is a
48:47strong Zone fresh with less than six
48:50candles at the base and giving us a good
48:52reward tourist ratio to make money now
48:55what if a Zone has a score between 8 and
48:579 bonds now if the score is between 8
49:00and 9 points we can think about a
49:02confirmation order actually a
49:04confirmation order is an order placed
49:06when the price first dips into the zone
49:09of interest and Crosses above or below
49:12the proximal line of the supply of
49:14demand zone so the idea is to confirm
49:17that the price is moving in our
49:19preferred direction of trade so any one
49:21candle has to close inside the Zone
49:23first and the second candle on its way
49:25out has to pierce the proximal line of
49:28our zone now the moment the price
49:30pierces the proximal line replace a
49:32market order here we don't place a limit
49:34order because the odds are not
49:36completely in favor of us the stop loss
49:39order setting is standard as always and
49:41finally what if we get a score of less
49:44than 8 points now if the final score is
49:47below 8 points it simply means that
49:49there is no trade the supply or demand
49:51Zone with a score below 8 points is
49:54actually weak soon that has a low
49:56probability of success so it is better
49:58you avoid taking the trade as I have
50:01mentioned earlier you can read more
50:03about other odd enhancers in the link
50:05provided in the description and you can
50:07be flexible enough to change the
50:09criteria and scoring according to your
50:11convenience now with that being said the
50:14odd enhancers we discussed here are very
50:16important tools to help you filter the
50:18supply and demand zones in addition to
50:21that the four odd enhancers used in this
50:23filtering system are what you need to
50:26score your supply and demand zones this
50:28will further help to fine tune your
50:30filtering system but remember that these
50:32odd enhancers don't guarantee the
50:34success of your trade instead what it
50:36does is that they give you a better
50:38chance of taking the right trades when
50:40they show up and leaving the ones that
50:42have a low probability of success so it
50:45is up to you to do your research learn
50:47more back test on multiple charts and
50:49finally implement it in your trading to
50:52see if it really works for you so if you
50:54have learned something new please do
50:55like the video subscribe to the channel
50:57and enable the Bell icon so that you
51:00won't miss out on the upcoming videos I
51:02will see you guys in the next video till
51:04then see

About this transcript

This page contains the full transcript of Become a Supply & Demand 'SNIPER'🔥 | Uninterrupted Supply & Demand Training🤯 | Premium Course by Fortune Talks , generated from the public captions YouTube serves with the video. The transcript has 9,959 words across 1,354 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to translate the transcript into 100+ languages.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, translation to 100+ languages, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.