Supply & Demand Trading — The Full Breakdown (Why Most Traders Get It Wrong — Transcript

Full transcript

1. 0:00Most traders, they just see this area
2. 0:02here as simple resistance. Either skip
3. 0:04it completely or enter it wrong and get
4. 0:07stopped out. I'm going to show you today
5. 0:08exactly why that happens and how to
6. 0:11trade supply and demand correctly and
7. 0:13why it's the backbone of each trade I
8. 0:15take. Stay until the end because I'm
9. 0:17going to show you a real setup from this
10. 0:18week and exactly how I managed it.
11. 0:20Before I get into the trade breakdown,
12. 0:22this is the exact trade I took this
13. 0:24week. I entered in this area of supply,
14. 0:27targeted that lower low, and as you can
15. 0:29see, pretty much zero drawdown straight
16. 0:32to TP. This wasn't luck, this was
17. 0:34predetermined ages before. And by the
18. 0:36end of this video, you're going to know
19. 0:37exactly how to spot these for yourself.
20. 0:40So before doing anything, you need to
21. 0:42determine the trend, okay? Are we in an
22. 0:45uptrend? If we are in an uptrend, I'm
23. 0:48solely looking for areas of demand. This
24. 0:51is high probability. If I am in a
25. 0:54downtrend, I only want to look at areas
26. 0:57of supply, okay? This is high
27. 1:00probability. And why is this important
28. 1:02and how does this work? You see, when
29. 1:04price shifts, let's say we're in a
30. 1:06downtrend, you can see we respect
31. 1:09supply. Then as we push higher, we start
32. 1:13to respect
33. 1:14demand. So let's look at this from a
34. 1:16structural basis and see what is going
35. 1:19on. Once price shifts structure, all
36. 1:22right, you can see if we look at the
37. 1:23external highs and lows, low, high, low,
38. 1:27high, low, high, low, high high. This
39. 1:31shift here tells us that price has gone
40. 1:33into an uptrend. We stop looking at
41. 1:35supply and purely look at demand. On
42. 1:37this leg down, we're purely looking at
43. 1:39supply. On this leg up, we're purely
44. 1:40looking at demand. Now we know that
45. 1:42demand is in control, what happens? We
46. 1:45still have valid areas of supply. This
47. 1:49is a valid area of supply, but this we
48. 1:52just expect price to pull back into
49. 1:54where? An area of demand because we're
50. 1:57in an uptrend to get the real move. As
51. 2:00you can see here, we tap into an area of
52. 2:04supply. But this area of supply is just
53. 2:06going to provide a pullback into this
54. 2:08area of demand
55. 2:10where we can get the real move. So why
56. 2:12trade the small movements when we can
57. 2:14trade the big movements? How do we know
58. 2:17where the big movements are going to
59. 2:18come? Because it's the ones in direction
60. 2:20of the trend. So remember, uptrend only
61. 2:23look for demand, downtrend only look for
62. 2:25supply. Here's where 90% of traders mess
63. 2:27up. Now they know that, they just start
64. 2:29drawing random areas. They see this as
65. 2:31an area of supply, I'm going to enter
66. 2:33from here. This is an area of demand,
67. 2:35yeah, I'm going to enter from here. Or
68. 2:37this is my area of supply here, yeah,
69. 2:39let me enter from here. This doesn't
70. 2:42work. You need specific criteria to
71. 2:44ensure they are high probability zones.
72. 2:46So what is this criteria? Well, the
73. 2:48first one is price needs to create a
74. 2:51break of structure. So if we're in an
75. 2:53uptrend, price needs to break some sort
76. 2:56of structure to the upside so we can
77. 2:58have that area of supply. If we are in a
78. 3:01downtrend, okay, price needs to break
79. 3:04some sort of low, the price needs to
80. 3:05break an external low to validate this
81. 3:07area of supply. If there's no break of
82. 3:09structure, there is no valid area of
83. 3:12demand or supply. For example, people
84. 3:14here may mark this area of demand here.
85. 3:18We can see it gave a big move up and
86. 3:20even left behind fair value gaps within
87. 3:22this leg. However, would I use this
88. 3:24based on this criteria? No, because high
89. 3:28low high low high. Did this area of
90. 3:33demand break structure? As we can see it
91. 3:36didn't. So if the area of demand has not
92. 3:38caused a break of structure, it is not
93. 3:41valid. Now as price returns into this
94. 3:43area, you can see it gets smoked because
95. 3:46this wasn't strong enough for us. Well,
96. 3:48how about this area of demand here? This
97. 3:51area of demand I can see actually
98. 3:54took out external structure. So, this is
99. 3:57a lot more higher probability now. If I
100. 3:59enter my longs in this area of demand
101. 4:02targeting higher prices, I know it has a
102. 4:04lot more strength. It's a lot more
103. 4:05likely to work. And as we can see, it
104. 4:07already tapped, gave a new high, and it
105. 4:09continues to rip from there. Now, the
106. 4:12second step is it needs to have
107. 4:14liquidity. No liquidity, the zone is
108. 4:17useless. You will be the liquidity. Here
109. 4:20we have an area of supply.
110. 4:23Okay. And we can see that it pushed
111. 4:27price lower. However, this gets
112. 4:28absolutely smoked. Why? There was no
113. 4:31liquidity resting below here for price
114. 4:33to sweep and then dump. That means no
115. 4:36orders to take out, no movement. This
116. 4:39zone is likely going to be used as
117. 4:41liquidity. Let's focus on this area of
118. 4:44supply here. Why is this amazing? Well,
119. 4:46we can see it broke structure to the
120. 4:48left.
121. 4:49All right. Low high, low high, low. It's
122. 4:53broken structure. That's valid. Step
123. 4:56two, liquidity. Look at this.
124. 4:58High here, high here, high here. We have
125. 5:01all this liquidity formed within this
126. 5:04area of supply, too. Now, this is an A+
127. 5:07zone for you to take a trade from to
128. 5:10target lower prices. We have that break
129. 5:12structure, we have that downtrend, we
130. 5:14have that liquidity sweep, and as you
131. 5:16can see, as I play price out, it does
132. 5:18dump all the way to this external low
133. 5:21here, and you smash take profit. Now,
134. 5:23let me show you exactly how I put this
135. 5:25all together in a real live trade this
136. 5:28week. I'm finding my trend, finding my
137. 5:30area of supply / demand, and validating
138. 5:32it. And as you can see, members are
139. 5:34using this exact supply and demand
140. 5:36criteria to pass their funded accounts,
141. 5:39get payouts, and trade like they never
142. 5:42have done before. So, getting to this
143. 5:44trade breakdown, like I said, as always,
144. 5:45the first thing we want to find is the
145. 5:47trend and direction. I can see low,
146. 5:49high, lower low. Price is pushing to the
147. 5:52downside. I have decided to look for
148. 5:55sells and look for areas of supply. So,
149. 5:58I want to find an area of supply that
150. 6:00was responsible was the criterion. First
151. 6:02one was a break of structure. An area of
152. 6:04supply that gave me this break of
153. 6:06structure here. Now, we have really two
154. 6:09areas. We have this area of supply here
155. 6:12and we have this area of supply here.
156. 6:16Two clean areas of supply that gave the
157. 6:18break of structure. Now, what was the
158. 6:20second step? Liquidity. I noticed that
159. 6:23this here didn't really have much
160. 6:25liquidity, whereas this lower zone was
161. 6:27acting as perfect liquidity for this
162. 6:30higher zone. So, while a lot of people
163. 6:32were into here, I was seeing this as
164. 6:33this is where we're going to fake out
165. 6:35traders coming to here to get the real
166. 6:37move. Everyone who limits their order
167. 6:39here is going to get cooked.
168. 6:44Another little step is this is
169. 6:46completely fresh and unmitigated. If
170. 6:48price had already returned into my area
171. 6:50of supply and demand before I took a
172. 6:51trade, then it becomes invalid.
173. 7:00So, now as price has swept this
174. 7:02liquidity, you can see we take out this
175. 7:04zone. Everyone who shorted in this area
176. 7:07here above this supply zone get stopped
177. 7:09out. We come into to mitigate our real
178. 7:12area here. I was waiting for this small
179. 7:14area of demand
180. 7:16to break as my confirmation, as well as
181. 7:19inversing this slight 5-minute fair
182. 7:22value gap here. So, now I know that this
183. 7:24supply has kicked in. We have broke
184. 7:26demand. We broke fair value gap. This is
185. 7:28the place for me to take my trade. Stop
186. 7:30loss above this high. Final target being
187. 7:33that external low here. As we play trade
188. 7:35out, we can see how great of a supply
189. 7:37zone that was because it gave zero
190. 7:39drawdown, zero fight back, beautiful
191. 7:41supply that smashed to take profit. Now,
192. 7:44here's where I want to be honest with
193. 7:45you. I just gave you the entire full
194. 7:47framework. You understand this
195. 7:49conceptually, but I already know what's
196. 7:50going to happen next for those watching
197. 7:51this. You're going to go to your charts,
198. 7:53you're going to try to draw these zones,
199. 7:54and 2 weeks later, you're still going to
200. 7:56be upset and angry because you can't
201. 7:57quite do so. Not because the strategy is
202. 7:59wrong, but because there's a gap between
203. 8:01understanding something and actually
204. 8:03being able to execute it live,
205. 8:05especially when pressure and real money
206. 8:07is on the line. That gap is exactly what
207. 8:09I work on with people with my
208. 8:10mentorship. I'm not in there teaching
209. 8:11you supply and demand from scratch. I'm
210. 8:13sitting with you and your specific
211. 8:14charts, your specific mistakes, your
212. 8:16specific psychology, and fixing the
213. 8:18exact thing that's keeping you stuck. I
214. 8:21worked with loads of traders who
215. 8:22understood this stuff technically for
216. 8:23years and were still blowing accounts.
217. 8:25But within 8 weeks, they were
218. 8:26consistently profitable, and knowledge
219. 8:28was never the problem. If you want to
220. 8:30apply for that, the application is in
221. 8:31the link below. It'll take you no longer
222. 8:33than 2 minutes, and I read every single
223. 8:35one personally. If it's a right fit,
224. 8:37I'll make sure to reach out. If this
225. 8:38video helped you, I appreciate any likes
226. 8:40and subscribes. I consistently post week
227. 8:42in, week out, and I'll catch you in the
228. 8:44next one.