Supply and Demand Trading Strategy **THAT WORKS** — Transcript

Full transcript

1. 0:00supply and demand trading has become one
2. 0:02of the most popular methods of trading
3. 0:05most forex pairs today and from combing
4. 0:08through thousands upon thousands of your
5. 0:10comments it's the thing that you guys
6. 0:12want to see the most so in today's video
7. 0:14i'm gonna help you guys understand
8. 0:15supply and demand how to find it when to
9. 0:19enter and when to take profit
10. 0:21[Music]
11. 0:26welcome back to the channel everybody my
12. 0:28name's artie and this is the moving
13. 0:30average a show where we discuss
14. 0:31everything day trading to keep you
15. 0:33profitable on a consistent basis i have
16. 0:35a feeling that this is gonna be a long
17. 0:37video so let's just get right into the
18. 0:38charts okay so the first thing you guys
19. 0:41have to understand when looking at
20. 0:43supply and demand
21. 0:44is the simple fact that retail day
22. 0:47traders cannot move the markets the
23. 0:50forex markets have a daily volume of 6.6
24. 0:54trillion dollars that 6.6 trillion
25. 0:58dollars is allocated probably to about
26. 1:0180 percent central banks across the
27. 1:04entire world moving money whether it's
28. 1:07from gbp to usd whether it's from euro
29. 1:10to jpy
30. 1:12they are making transactions depending
31. 1:14on the influx of currency that they get
32. 1:18to the currency that they would like to
33. 1:20get and they always want to get the best
34. 1:22price so they will hold out manipulating
35. 1:25the market to the point where they want
36. 1:27to get in on their big positions and
37. 1:30then get in and at that point that's
38. 1:32when you see the massive spikes in the
39. 1:35opposite direction again
40. 1:37daily volume of 6.6
41. 1:41trillion dollars the banks move the
42. 1:44market retail traders do not so the most
43. 1:47logical thing for you guys to do
44. 1:50is to trade like the banks so the first
45. 1:52thing that i want you guys to understand
46. 1:54when looking at the charts i have euro
47. 1:56usd right here it is one of the most
48. 1:58commonly traded 4x pairs and i want to
49. 2:01show you what it looks like when a swift
50. 2:04sharp move happens i'm not talking about
51. 2:07this i'm talking about
52. 2:09this
53. 2:10this v-shape is what you want to look
54. 2:13for these v-shapes only happen when
55. 2:16banks get into the market no amount of
56. 2:19retail day traders can make price move
57. 2:21like this ever so let's just say for
58. 2:24example you can't see any of this price
59. 2:26action right here you can only see this
60. 2:29one move if you look left you will see
61. 2:32right here this right here people like
62. 2:34to use as like the support zone right
63. 2:37and if it breaks below a support zone
64. 2:40people normally get in for a sell order
65. 2:42that looks like this smart people keep a
66. 2:44stop loss
67. 2:46dumb people however get liquidated they
68. 2:48don't have a stop loss so if the retail
69. 2:50trader gets into a short position right
70. 2:52here and it quickly reverses on them
71. 2:55they are stuck in that position until
72. 2:57the price pulls back to it and they can
73. 2:59get out at a break even or they get
74. 3:02margin called way up there so let's just
75. 3:04say they didn't have a stop loss and
76. 3:06waited for the price to come back to
77. 3:08that area so they can break even they
78. 3:10got into a sell position when a sell
79. 3:12position is closed it is a buy order so
80. 3:16their buy orders moved from their
81. 3:17original to break even meaning that
82. 3:20there are a ton of buy orders here for
83. 3:23the people that were stuck in the trade
84. 3:25buy orders living right here then there
85. 3:27are sell orders from the retail trader
86. 3:29just below that because it broke the
87. 3:32previous support so it must be going
88. 3:34down if you are a bank and you want to
89. 3:37buy a ton of something you have to look
90. 3:40for a ton of sellers not only that in
91. 3:44previous price action looking at this
92. 3:47area and people taking long positions
93. 3:49here trying to target this their stop
94. 3:53loss is going to be below that area that
95. 3:56we saw to the left right here so what is
96. 3:58a stop loss of a buy order that's right
97. 4:02more sell orders so not only are there
98. 4:05retail trader buy orders here there are
99. 4:07two massive chunks of retail trader sell
100. 4:10orders here which is completely primed
101. 4:13for the massive amount of liquidity that
102. 4:15the banks are going to put in their buy
103. 4:17orders and you see a massively sharp
104. 4:21straight up movement like a
105. 4:25retail traders cannot move the market
106. 4:27like this only big banks can maybe
107. 4:31retail can do something like this maybe
108. 4:33like a little
109. 4:34but not these colossal big ass candles
110. 4:38now i wanted to show you that example
111. 4:40specifically because it is just the
112. 4:42perfect cascading storm of sell orders
113. 4:45and buy orders at the right location
114. 4:48primed for banks victory but what you
115. 4:50also have to understand is that the
116. 4:53daily volume is 6.6
117. 4:56trillion dollars so what i want you guys
118. 4:59to focus on is the smaller moves because
119. 5:02banks still make smaller moves as well
120. 5:04as their massive moves like that think
121. 5:07about those supply and demand zones as
122. 5:10diving boards there are two different
123. 5:12types that banks will trade off of you
124. 5:15have the wide platform ones and you have
125. 5:17the narrow little flimsy dongle ones
126. 5:20that's depicted right here with a small
127. 5:22base and a sharp move then another one
128. 5:25right here with a single candle sharp
129. 5:27move again this is a very sharp move
130. 5:30this is more than a 45 degree angle
131. 5:32downwards so if your chart looks like
132. 5:34this when you get on and do your
133. 5:36analysis you should be drawing up a long
134. 5:38rectangular box across this zone and
135. 5:41then patiently waiting for the banks to
136. 5:44come back to that zone and use it as
137. 5:47their diving board to sell off the
138. 5:49market as the price comes back up to
139. 5:52that zone and we get this sharp one or
140. 5:56two candle rejection in the opposite
141. 5:59direction that right there is your short
142. 6:01position your stop loss is going to be
143. 6:03above the peak just barely just above
144. 6:06the peak of that maybe two or three pips
145. 6:08and your target is simply going to be
146. 6:10look left and where the most price has
147. 6:12crossed right there you're looking at 35
148. 6:15to 40 pips on these moves on a 30 minute
149. 6:17time frame these moves happen quickly
150. 6:20and it usually is in one direction the
151. 6:22entire time sometimes the price
152. 6:24continues and if you want to leave a
153. 6:26runner close 90 of your position but i
154. 6:28usually advocate that you just close 100
155. 6:31of your position at your take profit and
156. 6:33you look for your next trade and if you
157. 6:34guys are paying attention you're also
158. 6:36noticing right here this small base
159. 6:39consolidation area with a massively
160. 6:41sharp move off of it so when price
161. 6:43reaches that again and we get these
162. 6:45massive candles off of it you
163. 6:47can trade this zone again just a few
164. 6:50pips off of that up to where you think
165. 6:52the banks are gonna do their big
166. 6:53sell-off making money with the banks
167. 6:56whether the price is going up or whether
168. 6:57the price is going down again right here
169. 7:00single candle super sharp move off of it
170. 7:03banks push it back up massive drop down
171. 7:0640 pips within 30 minutes why does this
172. 7:08happen multiple times because when banks
173. 7:11have that much liquidity to move
174. 7:14they will do it in smaller chunks small
175. 7:17chunk one small chunk two that one was
176. 7:20actually massive and they will also
177. 7:21break it up into smaller chunks which is
178. 7:23why the small bases are important not
179. 7:26the long periods of consolidation
180. 7:29bless me thank you
181. 7:30but short bases where they fill in a
182. 7:33small chunk of their position another
183. 7:35small chunk and then they take the
184. 7:37market in the opposite direction please
185. 7:39don't ask me if this works for crypto we
186. 7:42are looking at the forex markets a 6.6
187. 7:47trillion dollar daily volume forex
188. 7:50market not crypto now here's the last
189. 7:52example that i'm going to show you this
190. 7:54is a long position banks get in a little
191. 7:56bit right there banks get in a little
192. 7:58bit more right there
193. 8:00and then the people that went long right
194. 8:02here with their stop losses right here
195. 8:04they take advantage of that so they're
196. 8:06sell orders right here meaning the buy
197. 8:08orders are primed ready to go banks get
198. 8:11in with the sharp movement pulls it up
199. 8:13gets enough people stuck and or
200. 8:15liquidated brings the price back down
201. 8:17into that zone for one last massive
202. 8:20rally off of that and the price shoots
203. 8:23up so either banks build up their
204. 8:24positions slowly rip the price up bring
205. 8:27it back down one more time and then let
206. 8:30it take off this is why current price
207. 8:32action is king banks are moving money
208. 8:35you either trade with the banks or
209. 8:37they're the ones that take your money
210. 8:38this is a constant battle between the
211. 8:40retail day trader and the banks so start
212. 8:43looking for the signals that the banks
213. 8:45are dropping for you the little
214. 8:47breadcrumbs pick up the scent of which
215. 8:50direction they're going to go in and go
216. 8:51with them if the price is moving against
217. 8:54you very very sharply please get the
218. 8:56out of your position you're getting
219. 8:58screwed over by the banks not screwed
220. 9:00over you fell for their trap admit your
221. 9:02mistake get out of your position prevent
222. 9:04yourself from having a massive loss also
223. 9:06keep in mind that those trades that have
224. 9:09the base the small base where there are
225. 9:11multiple positions that the banks got in
226. 9:13at that is a much stronger move than the
227. 9:17quick single candle one because right
228. 9:19there is where the traders are trapped
229. 9:21more trapped traders means a longer
230. 9:24bigger move off of it so if you guys
231. 9:27want to learn more about day trading and
232. 9:28all the different strategies that i
233. 9:30teach on this channel check out my
234. 9:32intermediate playlist right here and if
235. 9:35you guys got some value out of this
236. 9:36video and you like the way that i teach
237. 9:37you want to see more videos like this
238. 9:39make sure you're subscribed to the
239. 9:40channel by clicking this button right
240. 9:42here thanks so much for watching and
241. 9:43we'll see you in the next video