Transcript for:
Supply and Demand Trading Strategy

this is the only gold trading strategy that you will ever need so in this video I'm going to show you how to make one thousand dollars a day trading gold so the strategy that we'll be using is called supply and demand and the whole G's of this strategy is that we're gonna be looking for aggressive buying and aggressive selling because you must understand that we retail Traders as no power to move the market so we must follow the rich big boys or rather the smart money look at this example on the right you can see there's a lot of aggressive buying right now and you can also observe that there is multiple green candlesticks in a row so when price come back down to re-test this level right here you want to be entering for a buy because the rich big boys who push the market up initially are going to buy more when price come back down to re-test this level so when that happens you want to be able to write the uptrend with the big boys or whatever accepts the smart money so on the left hand side we got your supply example right so as you can see there is a lot of aggressive selling on right here price has just been dropping like crazy and there is multiple red Candlestick in a row so these tell us that somewhere around here there is a supply Zone because this is where the huge downtrend started right so now what we're going to do is to wait for price to come back up to re-test this Supply Zone and then we can enter for ourselves somewhere right around here so that we can write the downtrend with the smart money so there are two reasons on why this strategy is so powerful number one you are following the rich you are literally following the trend rather than trading against the trend you are following the smart money Concepts which move the market number two you can use this strategy in every market conditions so it doesn't matter if the market is going sideways ranging or is trending in the uptrend or downtrend or is it reversing it doesn't matter you can use this strategy from any of these market conditions so the first example I'm going to show you is an arranging Market or a sideways Market as you can see right now price is not going anywhere it's going up down up down just consolidating and going sideways and most of you guys when you see this you are not going to be trading this right because I told you guys multiple times that you should not be trading and the market is going sideways because there's like less opportunities but that is not the case when there is supply and demand because you can trade ranging markets when you are using this supply and demand strategy so right here what we're going to do is to identify like a supply Zone first so you can see at this point there is aggressive selling how do we know that we observe this candlesticks being formed right here at this area here you can see there's a few red Candlestick in the row and there's a huge red Candlestick right here which tell us that there is a lot of selling pressure at this area and the smart money they are definitely selling at this area here what we're going to do is draw a box at the start of this slide sell owling pressure this selling movement down so I can draw a box like maybe somewhere right around here like this because this marks the start of this Supply move whatever you like to call it like this basically this big downtrend here since we have mocked up our supply Zone which is somewhere right around here the next step is that you want to wait for price to come back up to re-test this Supply Zone and then that is when we can enter for our cell and we can shop the market down and just write the overall downtrend so in this case price has not reached up to the supply Zone yet so what you want to do is to be patient and wait the last thing you want to do is to enter for a sell here recklessly because you feel a bit of fomo you see that oh my God everyone is selling at this error I should sell right now no if you want to get a sniper entry you must be patient enough to wait for price to get to a nice key level and then that is when you can enter for the trade so right now we are professionals so we're just gonna wait and you can see right here at this point of time price has managed to go up to our supply Zone when price is at a supply zone I'm looking looking for a few things I need confluences that tell me that price is going to reverse at this Supply Zone and head back down then that is when I can end up for the trade because remember that is still a chance that price will break through this Supply Zone and we will have to cancel this entire trade setup so the first thing I'm looking for is your moving average crossover that will be my first conference that tell me that you know what this little retracement this little retest done and price is going to reverse and head back down so at this point of time I'm going to be waiting for the moving average to cross over right now we are on the one hour time frame and if I'm gonna enter for this trade I'm gonna be entering on the 15 minute time frame so I'm looking for a moving average crossover right now and the second thing I'm looking for is actually a Candlestick pattern I want to see some sort of Candlestick pattern that show me that you know what the market is going to be reversing at this Supply zone so we still wait for a second sign and you can see right here the moving average is starting to cross over the candlesticks how do we know that you can see the candlesticks are getting below the moving average right now compared to last time where the candlesticks are above the moving average and by the way the moving average that I'm using is actually the 9 EMA or you can even use the 8 em actually I love those 8 EMA so you know what for the sake of this video I can just use the 8 EMA so I just use the 8 EMA and then at this point of time I'm waiting for the two factors which is a Candlestick pattern and also your moving average cross over so it's still weird and right here guys this is where I will enter for my trade because I see a huge red Candlestick right here which tells us there's a lot of bearish pressure a lot of selling pressure pushing the market down and also your moving average crossover right here you can see like the candlesticks start going below the moving average so this is where I will have entered for the trade when the moving average starts crossing over and I start seeing a lot of selling pressure at this key level and I'll be basing my stop loss either above the supply zone or above the last lower high which is right here because it's the last lower higher you can place it above it right here and then for my big profit only place it at the next key level which be all the way down here because whenever price gets down here it always reverses come back down reverses come back down reverses so this is like a little support area that where I know that price is gonna start reversing so that is where I place my take profit let's look at how this trade plays out it's a very nice one it's four risk to the world ratio trade and as you can see price ended up collapsing and we have smashed our take profit this is a very nice ranging Market thread setup so we can use this strategy when the market is going sideways that is the beauty of this strategy here's an example in uptrend so you can see right now price is in the uptrend because price is making your higher highs and higher lows and you can see class day price is going up so this is a trending market so this strategy also worked when the price is trending so right now we are in the uptrend and we want to identify some sort of demand zones that show us that in what price is going to bounce up even further so at this point of time I have spotted a demand Zone at this area here because you can see this is a new higher high and price is making your new higher low at this area so somewhere around this area here is a new higher low remember your Market structure guys so at this part of time I've spotted a demand Zone somewhere around this area here how do I know that because if you look towards the left right here you can see that it's multiple green candlesticks in a row which show us there's a lot of aggressive buying at this area so since there's a lot of aggressive buying and there is multiple green candlesticks in a row we know that before this error here before this art move started right around this area is your demand zone so at this point of time I'm gonna be waiting for price to come back down to this area and give us the two confluences that I just talked about earlier before I enter for the trade I'm gonna go to the 15 minute time frame to look for my entry so I'm still going to be patiently waiting and right there ladies and gentlemen right here this is what I have ended up for my buy position because I see this huge green Candlestick huge bullish engulfing Candlestick which tells us there's a lot of buying pressure and at the same time there is also a moving average crossover right here you can see the candlesticks are going above the black line which is the moving average so I'll place my stop loss below the demand zone for my take profit I'll place it all the way up at the next key level which will be all the way up here so if you are unclear on where I should base your thick profit always look towards the left right look towards the left see web price last stop at so this is the point where price went up all the way up here and I started reversing so this web price last stop at so you can base or take profit right here so right now let's see how this beautiful trick s oh my God just put you can see let me just speed it up a little bit by going to the one hour time frame you can see price eventually went up to smash our take profit making this a very beautiful trade so this is more of a swing trade it took place over a few days right inside this tutorial I'm not only going to show you a swing trade I'm going to show you how to scout using this strategy also here's another example but in a downtrend so you can see right now price is in the downtrend because price is creating your lower highs and lower lows so it's a very clear state that price is going down so at this point of time prices managed to pull back a little bit and it's creating your new lower height so I'm gonna be looking for my Supply zones and I can spot like a little Supply Zone somewhere right around this area here because whenever price gets up here to this Supply Zone it always collapsed so you can see one time before it's gone up here when McDonald aggressive selling another time price go all the way up here same thing aggressive selling multiple rate Candlestick in a row and a third time same thing multiple rate Candlestick in a row so now I know that this is a very strong Supply so own and price is creating your lower height so at this point of time price has managed to come up to our supply Zone but we still do not want to enter yet because remember the two confluences that you must look out for before you enter for the trade so right now we still be patient and wait and as you can see prices managed to get all the way up there and eventually break out of this Supply Zone even and now let's look at what price does you can see price went up even for the breaking of the supply Zone this is why I asked you guys to be patient and wait for those two confluencers and do not enter immediately when price is at a supply or demand Zone because let's say you enter for yourself immediately when price touches the supply zone so somewhere right around here you have gotten stop that and lose a ton of money that is why you guys have always got to be patient to wait for the perfect trade setup before you end up for the trade so right now it's still way and you can see what's this ladies and gentlemen this moving average crossover the candlesticks are crossing over the moving average at this point of time and we can also see a Candlestick pattern being formed somewhere around here somewhere right around there we go price is giving us multiple reconsticks in a row at this Supply Zone this tells us a lot of aggressive selling at this point of time so at this point of time this is where I have entered for a cell position somewhere right around here and I'll place my stop loss above the supply zone or rather above the last slower height so you can see price is creating a lower high and where's the last low high above this last lower high right here and you don't want to base it super tight like this because price is gonna easily go up there stop you out and then go in your way so I'll place it above the last lower high or above the supply Zone and I'll place my take profit all the way down at this key area right here there's a very strong support area being formed at this area somewhere right around here because we know price comes back down here it always reverses coming down reverses this is a one is 2.5 risk to Evolution trade let's look at how it plays out so you can see price actually reverse all the way up here so if you place a stop loss super tight like this guess what you have gotten stopped out and you have lost a whole lot of money just to see the trade go in your way let's look at how this trade play out and you can see a price like continue to go down and ultimately smash our take profit right around this area here it's a very simple supply and demand trading strategy that will allow you to make one thousand dollars a day trading go an example is just look at this trade this trade in this one beautiful swing trade you have caught over 300 Pips 300 Pips guys and if you use a lot size of 0.1 that would be three thousand dollars you will have made three thousand dollars over the span of what three days making it one thousand dollars a day that is absolutely crazy guys now here's an example in a reversal setup so you can see price has been going uphill and then it reverse and head back down here so right now there's a support area being formed somewhere right around here you can see when our price gets down here it always go back up right you always like go back up so there's a restaurant support area right here this is also what we call the demand Zone because if you look at this area right here you can see there's three green candlesticks in a row which show us there's a lot of buying pressure at this area and if you look towards the left another price gets down to this area here they always goes back up so at this point of time I'm gonna be waiting for price to come back down to this demand Zone and then enter for the trade and a lot of you guys will commit this mistake where you see this this up move at this Supply Zone and you immediately end up or buy because you assume that price is going to reverse right now and it's gonna like start to go up to the moon like go up in a straight line but that is not what the market will do the market has to retest this level to tell you guys or wanted to show the market that this level is a solid demand zone so right now like I said I'm gonna be patient and wait for the price to go down to this demand Zone and then that is when I will enter for a buy so right now do it and you can see price is starting to come back down okay you can see it came back down to re-test our demand zone so at this point of time we still wait for our two confluences remember because you do not want to end up for the trade immediately when price touches the supply or demand zone so it's still wait somewhere right around here yep you could end up for a buy somewhere right around here when you start seeing the moving average crossover and also a big green Candlestick right here and it will place your stop loss below this support area and for a take profit either place it at web price last topic which is right here could even place it at once it's two risk to rock ratio like this and let me show you how this beautiful trade play out you can see price eventually went up to smash our take profit and you can see when price got all the way up here it actually start reversing so what you could have done is you could have manually closed the thread somewhere right around here when you start seeing prices like reversing making your red candlesticks from your double top so this is where you could have gotten out of the trade the moment you start saying price like reach near your take profit but you start seeing it reversing then is when you can take profit manually close the trade do not be dumb enough to hold the trade all the way to your take profit if you start saying that it's like reversing near your take profit if you want to learn more about supply and demand I has created like a complete guide to trading supply and demand right here where you can check it out and if you already know like what supply and demand and how to trade it you might want to check out the supply and demand secrets in this video right here I reveal to you the supply and demand secrets that you must not miss out and like this video If this video is helpful and click on that subscribe button and remember you're just one trade away