all right I'll admit it This video took way longer to put together than I originally planned After the flood of comments on my last supply and demand video demanding a lesson on originality I knew I had to get to it ASAP Let me tell you this past month has been absolutely insane With a new OTC launch coming up it's been all hands on deck and I barely had a moment to sit down and shoot new lessons But finally I can catch my breath And today we are diving deep into two of the most critical topics in supply and demand Freshness and originality If you've been following me for a while you'll notice I always mention them together That's because they're inseparable Literally two sides of the same coin What's going to happen with freshness has already happened with originality a cycle that's always repeating itself Same concepts same mechanics but in a different direction in time Don't worry by the end of this video you'll have a solid hold of how to spot and use both of them Just make sure you watch all the way through because today's practical application is packed with real world insights We'll be doing a full analysis on a Forex major that literally anyone on any broker can trade In this video I'll be proving fresh rashness and originality are not just a couple of trading theories These are solid concepts that you can apply today to your own setups And once you fully master them you're going to look at your trades and realize you are selecting highquality zones without even realizing it Now let's get into it As we all should know by now our trading is always rulebased So when we talk about freshness we need to have clear rules on how to trade it However originality's case will be different More on that later We can categorize freshness into three categories on a lower time frame Category one states that a lower time frame zone is 100% fresh measured on a wider version This is an ideal zone to trade Any zone found in category 1 is automatically a high quality zone because price has never returned to the zone since its creation So testing the vider version is going to be our most conservative LTF rule to start with This rule basically says that we will have a higher likelihood of getting filled and a much higher probability of success Category two of freshness is one degree lower in quality So what does it say Price has tested a wider version of the LTF zone However not the preferred version In other words price has touched the wider version but hasn't touched the preferred version yet This is not ideal because as price tested the wider version it filled some of the unfilled orders that still remained in this area In this case it is unclear to us how many unfilled orders are still left if price comes back a second time That's why the zones in the second category are of lower quality than category one As for the higher time frame location it's permitted for us to test for freshness using the preferred version of the zone This is because higher time frames have a higher amount of unfilled orders and we expect the price to move away from them more than once As you advance as a trader and depending on the income type you're choosing to trade you may choose to change the conservative rule from LTF cannot be tested on the wider version to more aggressive rule LTF cannot be tested on the preferred version For example if you trade monthly income and weekly LTF this could be looked at However for daily income this rule should not be changed Category three of freshness is the rejected one It states that price has tested or touched the preferred version of the LTF zone This is not acceptable as most orders would have been filled Trading the second touch would immensely decrease our probability of success What we learn from freshness is that a fresh zone which has never been tested before has the highest probability of success as we can expect the most unfilled orders This is also one reason why I have to look at every market there is forex stocks energies metal agricultural because rules like freshness and originality are among the first to look at to weed out the lower quality trades and I end up trading only prime trades So everything we mentioned so far about freshness the same except concept applies to originality To detect freshness we look at the right of our zone making sure it has never been tested or touched by price And to detect originality we look at the left of our zone making sure it wasn't created as a reaction to a previous zone All of our lower time frame zones are either original or nonor Originality means a zone has not been caused by a reaction of another zone to the left So it's not a part of a previous zone It has to be completely unique Non-originality implies that a zone has been caused by another zone to the left I know that still doesn't explain how we can find this unicorn I have a very simple trick or you can call it a rule of thumb to easily detect originality Do you remember our U shapes Rally base chop chop base rally Well I hope you remember them because they are usually nonorinal Most of the time they created by an original zone to the left Does this apply to every single rally based chop and chop base rally that we see Well usually yes The only exception would be U shapes at all-time highs and all-time lows Those would be the only original RBD and DBR On the other hand the rallybased rally and tropbased drop are most of the time original unless they're part of a bigger picture direction So in a sense all rallybased rally and dropbased drop are always dormant waiting to eventually push price away from them as they are most of the time original And if there's something forbidding that to happen it's usually the direction of trend which will eventually sooner or later flip to the other direction And so we will see a profound institutional move away from these zones Now I need to stress this for all beginner traders that are watching me Originality can be quite complex at first Therefore we will not have any trading rules in the beginning Originality is more like a skill that you need to develop over your trading journey And the fastest way to learn it is to place trades But in order to break this down further I want to show you a real example currently in play on this known forex pair I picked the New Zealand dollar for today's lesson Why Because there's a trading setup that's been developing for months And I have a big warning about this setup It's a textbook case of how traders misunderstand originality And if you're not careful you could easily fall into the same trap and you might be checking this video long after this trade has materialized So please leave a comment Let me know how it unfolded in the future So without any further ado let's jump into the practical application session We talked about freshness already a little bit and in this case I'm going to add another layer on freshness which is um originality So a zone can be fresh and original and a zone can be fresh but not original I'll break it down for you in this lesson Now remember freshness and we're going to draw zones together here Now freshness right Here we have a zone I'll highlight that zone for you Here we have a zone a chop base chop Here we have a zone That zone and That's a way how you always okay how do I see whether zone is fresh you always look to the right so freshness you always have to look to the right never to the left you always look to the right and if there's no candle penetration in that zone if it's like there's nothing here the zone is fresh now you can measure freshness based on the preferred version and based on the wider version Ideally on a lower time frame the zone is always fresh based on the wider version because if you see here for instance here's your rally base base base drop right So you have a rallybased job and that rally based job here that rally based job you see is not fresh based on the wider version You see that here it's touched the wider version is touched by that candle here So you cannot just look here to the right You have to look literally the next candle Is it touched already Yes it's touched based on a wider version Is it ideal Not really But it could be based on your set of rules You could say "Hey I measure fresh freshness based on preferred version." So because that zone is fresh you see based on the preferred version And now we just only talk about freshness So how can you again measure freshness You can measure freshness based on the preferred version and based on the wider version ideally on the lower time frame The most conservative rule is the following The zone has to be fresh based on the wider version If you're more experienced at some point of time you can alter this kind of rule But right now to be like as conservative I want you to be as conservative as possible So you have the most strict rules that exist So I would argue you set the rule as well my lower time frame zone has to be fresh based on the wider version And so you would say hey I'm not allowed well I'm not allowed to trade this zone I'm not allowed to trade this zone because it's tested But I'm allowed to take this zone because this is completely fresh based on preferred and based on wider version Now it's kind of also interesting the following What's the actually what's the what's the concept behind that What's the why does a stone have to be fresh Maybe you figured that already out by yourself but let me explain it one more time So the more time so every time a zone has been touched every time price comes into a zone and then the zone is rejecting price and price is moving away from the zone it means there are more there are more orders being filled The more a zone has been touched the more orders has been filled from that zone Because at some point of time let's assume now and we're going to do this in a in a in a bit Let's assume that zone has been touched multiple times two three four times At some point of time it will not have more unfilled orders left So then at some point of time basically supply will or in this case demand will exceed supply and price will go through So the more often so in other words the more often a zone has been touched the less likely it is that it will hold the next time because it will consume all the unfilled orders Ladies and gentlemen this is really the most important lesson That's the concept about freshness The zone has to be fresh because then the likelihood that it still contains all unfilled orders is very high And the more a zone has been touched the less likely it is that it will hold and then the other force in this case here force will most probably here supply will exceed demand because it's well it's fresh Supply will ex supply will exceed demand So price will drop But if this zone would have been touched a few times or even one time then we could argue well all unfilled orders has been consumed So demand then in this case maybe demand will will overpower supply and price will go through Now that's freshness All right and that's a concept of freshness Now what's the concept of originity So a zone and you see by the way chop based chops and that's the rule a chop based drawbased drops not a rule but I'll explain you how how the concept works a chopbased chop and a rally based rally Let's find a rally based rally somewhere Let's find a rally based rally somewhere down here Maybe there's a rally based rally uh this is we would need to go to another time frame or price we would need to go to another time frame doesn't matter but we will find it on another example rally based rallies and tropbased drops are always fresh and original why is that I'll get to that now in a second now freshness you measure to the right originality you measure to the left now if we have a zone If you go back to this zone up here if you go to that zone up here what you will see the following and I draw this zone now based on the preferred version that zone you see it's a rally based drop Rally based drops and you have to write this down as well Rallybased drops are never original only if it's all-time high I repeat rallybased drops so inverted U-shapes are never original except for all-time highs And U shapes dropbased rallies are also never original only at all-time lows I repeat dropbased rallies are never original only they are only original at all-time lows So this is really advanced and you don't have to pay too much attention to it If as a beginner but con conceptually speaking I'll want to explain this for all more like advanced and veteran traders because now you look because that's why is it not original because it's a reaction of a previous zone Look at this This is the reaction of let me draw it That's the reaction of that zone here You see that price that was also rally based shop high quality one You see nice leg out See price came inside and then it here from that zone it dropped and it created a new zone And look at this What is that here It's another rally based job So we know hey can it be fresh Yes it could be potentially fresh We look to the right Obviously it's not fresh It's went completely through it But let's see if it's original We know a rally based a rally based job can only be original at alltime high Well it's not alltime high at all So what do we see here That it's basically we know then already because I'm teaching you this that it's not it's not original It's a reaction of a previous zone And look at this What do we see here What do we see here Here we had another rally base drop Here we had another rally base drop So also that zone well you see this zone here is the reaction of that zone This zone here is the reaction of this zone as well and potentially maybe on this zone because it went all the way here So and what about this one is a really base drop Is it fresh Well we have to look to the right Well no It's reacted here It reacted here already So it's not fresh Is it original No it cannot be original because it's a rally based chop It is not at alltime high So it must be a reaction of a previous zone And we have also here a zone sitting here right So so it might be a reaction of that one So why is this actually important It's not that important As I said you don't as a beginner you don't have to really differentiate and I want to stress this You don't have to differentiate between hey is it so now fresh and original is it only is it only fresh it's not that important but conceptually speaking what did I explain you in terms of filled orders unfilled orders the more time a zone has been hit the less likely it is that it will hold the next time so what happens now if you'd ask me if price from here rallies all the way up here Is that a is that a high quality quality zone here For me personally you could as a beginner you would say yes because it's a ready based job It's preferred version is fresh and you could trade it because I look to the right It's fresh based on preferred version But if I'm advanced I would look also to the left and say no Ah remember rally based job cannot be original So let me check how many times this has been reacted in the past Is it a reaction only from one ready another ready based job or maybe from a drop- based job or has it been reacted only once or has it been reacted multiple times And if I look here it's you see it's been reacted once it re it has been reacted twice might has been reacted here three four times and maybe five times So it has been reacted four or five times already from that particular area So conceptually speaking every time it hits that area the unfilled orders are not getting more more Remember every time it hits a certain area the unfilled orders are getting less and less and less and less and less And at some point of time there are no more unfilled sell orders because it's a supply zone There are no more unfilled sell orders left Meaning in other words it's is it question to you quickly and you have a few seconds to think about it is the next time price comes up here is it more likely to again react from that zone and going to go back down here or would you argue well it has been hit so many times so it has been consumed so many unfilled orders it's more likely that it will goes through that area And the answer is I give you three three seconds to think If you know the answer then you're already far ahead of the game So the answer is clearly yes So it will most likely go through that area the next time because I would say after four or five times hitting that area all unfilled sell orders are consumed Demand will exceed supply and price will go through again I want to I don't want to sound too repetitive but for you it's really important to understand that hey freshness is the second most important rule All right So you have the coverage you have to you have to be covered always by higher time frame Big brother small brother principle has to be on top of your list Then when it comes to well your leg out has to be explosive or at least a few decisive consecutive decisive candles That's also important But the second important rule is freshness Is your zone fresh Ideally based on a wider version not so good if it's only preferred version Could you use that as a rule Yes you have to back test that ideally But your zone the second most important rule the zone has to be fresh based on the wider version How do you measure freshness You always look to the you always look to the right If it's not penetrated is the zone has not been touched to the right it's fresh If the zone has been touched then it's not fresh And then originality on top only for advanced traders Conceptually speaking the more times a zone is reacting from a previous zone a same kind of zone here supply zone from another supply zone or demand zone from another um demand zone then a zone is not original And this might only cause quote unquote only cause an issue If the zone has really been reacted from a certain area three four or five times then we would expect that well all unfilled orders has been consumed and the opposing zone will basically overpower um yeah so demand here in this case will overpower exceed supply and price will go through So that's in a nutshell freshness versus originality Make sure your zones that you are trading are fresh Fresh based on the wider version be covered by big brother and you meet already the most important zone qual qualifiers there is Thank you for listening See you in the next practical application session And with that we complete one of the most important lessons in our supply and demand series We plan on publishing a new lesson in a couple of weeks so please tune in for that I hate to give you homework but every single like on this video makes a big difference with the YouTube algorithm so it's always appreciated I will see you on the next one [Music]