all right guys well we are back with another lesson today we're going to elaborate on zones so I've seen a lot of Traders like you guys specifically um Miss Mark zones okay um I think the most important Concept in our strategy aside from the zones are the imbalances the splits and everything else that we talk about including the 50% line uh but today I want to talk about marking zones right because if you are going to mark an aoi or you're going to mark uh 50% level if you don't have the Zone marked right that aoi or 50% level is not going to work out so we have to understand how to Mark these zones how to make them uh you're never going to have a perfect Zone but how to make them most reliable as possible okay so I got a whiteboard here up because I actually want to draw it out for you guys rather than just show you a bunch of examples okay but a lot of times uh when it comes to drawing zones you're going to have uh for example uh let's let's break it down and start one by one okay so the first thing we're going to start with our demand zones okay so a lot of times you're going to see uh that price uh comes in we create you know a lot of candles right so let's let's let's start with our creation of candles okay price starts balancing out and this is for demand okay um let's put in some green candles in there as well and then uh the last candle is always going to end with a on a demand Zone it's always going to end with a red candle so remember that that's very important for us to understand so the last candle is always going to end with a red candle on a demand zone so let's put that in here make sure we draw it up for you guys that way you guys fully understand okay so uh on demand last candle which the last candle is also called a basing candle okay or you can call it uh the basing candle okay will always end red okay so this very important thing for you guys to understand because I seen you guys Mark a demand Zone with a a green candle and I'm like why are you guys marking the basic candles the green candles so there's there there's there's there's there's this and then there's another thing we have to understand is uh three parts to his Zone okay um three parts to a Zone okay there's the top the bottom and the middle which the middle is also considered the 50% level boom boom boom okay there's three parts of the zone and then the last thing you guys have to understand about a zone is well is only two candles matter oo you guys didn't know that huh only two candles matter and we'll talk about what that means right now so we have a a bunch of balance so so pretty much what I'm saying and then eventually you're going to have that aggressive move okay to the upside let's remove that like that we're going to have that aggressive move eventually right to the upside okay which now your zone is created okay with way to the bottom so the reason I drew out a bunch of candles here is because I want to tell you guys CU a lot of time you guys are paying attention to the wrong things I don't know why you guys pay attention to these but don't pay attention to these okay this candle doesn't matter this candle doesn't matter this candle doesn't matter this candle doesn't matter that candle doesn't matter these these candles are irrelevant okay you're left with these okay let's put that back so the candles we had before all these candles right here okay which were small balanc candles they don't matter okay obviously if we form a demand usually what's happening is either we're pumping and then we balance out demand so there's different type of demand so we're either coming from let's say in this situation over here okay we were coming from you know somewhere where we were falling down pretty hard okay so we were falling down and then we balanced out and eventually Longs ended up coming in right we have that type and then we have the other type which is uh like this right we're we're we're um we're coming up right but we're coming up like this this is a green candle we boun balance out then we come up again and that's that's another one okay that's another type of demand so there's one where we're coming down we balance out then we come up this is demand there's one where we coming up we balance and then come up again and that's where the demand is created on the red candle okay so if we take a look at this uh let's let's let doesn't matter where it comes from it's the two candles that matter these ones okay now what is a valid Zone I think that's the real question we have right now and what does that look like and what is not so maybe let's talk about what is not a valid Zone first so we can talk about what is a valid Zone okay so an invalid Zone okay is when we have the basing might be too big okay so again we just covered uh the only two candles matter we have a basing and then we have an aggressive move okay what would make this basing candle invalid okay so if this basing candle C let's delete it okay if this facing candle was this big would that make a Zone okay with the Wake down here okay so the the wake is not invalid the wake is fine down here on demand so any wake size on demand that's at the bottom is fine okay obviously you want smaller zones and we talk about that in aoi and split okay in the lesson but the the the basing the body of this candle okay it's too big these two can't be in that same size cuz that won't make a demand a demand means that it's coming from an area that is balanced that we're coming down okay actually this can't be like this sry um so these can't be the bodies cannot be the same size the basing candle we want to at least keep the basing candle when it comes to uh demand we want to keep it at least you know below maybe that 30% line you know that's it 30% of this candle okay so if we're looking for a Zone we want to keep it between 30% so let's go for example when it comes down to basing candles let's go on the 30 minute here quickly so don't worry about the wick right now we're only worri about the the base okay the base is the body okay see how this is below 30% this is fine right and that worked out perfectly that's a demand Zone okay let's see if we find any more over here okay and we're just considering the base don't worry about the wick okay because the this wouldn't be a demand Z so let's not even bother with that one over there because of the wig the base is fine so this is fine right cuz you see the base it's in that 30% rate you see how it's not now if the base was all the way up here right that's not going to be a demand Zone you know what I mean the base is too big we can't have the base too big we need to have the base just where we need it and in this case the base was all the way up here it would be more than 50% or 50% we we don't want that it's got to make sense and we and on the other hand we don't want a super big Zone okay so 30% keep it there don't don't be moving around with your zones and and and making and over complicating things by marking those huge basing candles you don't need okay another thing that would invalidate a Zone and make it not valid is it on demand okay we're specifically talking about Demand right now we're talking about Supply after is if this Wick is too big so if this Wick exceeds 50% okay but but there's let hear me out if this wig on that demand Zone on the base exceeds okay forget this let's delete that okay if that W exceeds 50% guess what it is not a demand Zone and in this case we saw that happen over here where's that 30 minute we saw earlier in here look at that this wig exceeds 50% okay this would not be a demand and although the base is fine the wick on top exceeds 50% and we're not going to mark that it has to be under 50% now there's going to be certain situations where you have this candle for example that exceeds 50% okay but it rarely exceeds 50% and I would say maybe this is around 70% of that candle okay and in a situation like this if you don't have any other zones this is fine because this is also an aoi and we can see that in this aoi it's working out perfectly right we were to mark this as an aoi okay and again aoi we do have the video on that that's out already we see that this is working out perfectly that's fine the theory behind the 50% marker is to keep you stabilized right and not going too crazy okay for example we take a look at this okay and this would have been dependent on you okay I personally would have probably not marked this because again the aggressive move is not aggressive enough right if this would have been more aggressive we could have have because a lot of times what we don't want on a demand Zone as well is we don't want to fight on that aggressive move you see how we have a fight up here and it brought got brought down the wick is fine because it also maybe at the same level as this but look this actually followed through and this candle had a fight at the top we don't want that okay so we don't want this to exceed 50% but if it exceeds 50% maybe 60 70 take a look at that aoi is it a good level so meaning that U so basically I'll just explain it the top of this is the aoi this is the aoi this is the area of Interest okay does is the aoi working perfectly fine so meaning that for example on this Zone over here okay uh we see this zone right we have the aoi here right is the aoi working out and in this case it was working out right so we can continue to use that zone all right so we don't want that uh uh like that it it's got to line up everything's got to line up okay so that's another thing now when it comes to uh the Basin candle again uh what we Mark what what about this wig down here this wig can be however it wants to be okay guys this does not matter it can be all the way down here and it's still considered demand obviously we don't want a super big Zone we want to find the smallest zone possible so even this 30 minute I would try to find something much smaller than this because I don't really like to Mark big zones I don't want to be trading in a Range where we're stuck between 80 tick and 80 tick that's 160 TI Zone I don't want that but if that's the only thing I have then that's what I'm going to have to work with right but the bigger the Zone the more risk it takes hear that out okay so you need to be very very careful with when it comes to that all right so the next thing that I want you guys to pay attention to is this candle okay when we have a wake on this candle that's this big there's a fight up here we do not want a fight up there okay on this candle we had the basing over here okay the basing let's say the basing is fine here right cuz again this is fine but look at this candle right we do not want a fight up there okay it has to have at least mostly follow through you're going to have a little rejection up there but you don't want too much okay what would be fine is something like this okay that's okay even here that's okay right the Wake down here again on demand doesn't matter it can be however you want it but the Wake down here doesn't matter okay but the up there it does matter on this candle now you don't want your candle to be non-aggressive in a in a situation where you mark your your level one you have a candle like this again why wouldn't this be a demand right because the basing candle is blined up 50% with that candle the wick is wrong there's so many things wrong with this right uh your goal when it comes to demand is finding the best Zone possible so if I'm looking at this right and I say okay you know this 30 minute is might be the only thing that I have here okay and that 30 minute one to bounce at first twoo so that 30 minute might be the only thing that I have here okay we have the aoi as well I'm not going to talk about aoi yet cuz you guys are going to watch another lesson but we have that zone okay the wick is fine we had a follow through we had aggression these two candles are the only candles that matter okay we came into that zone and we had a big bounce so obviously we know the zone is good good maybe the aoi wasn't good but the Zone was good okay so now let's pay attention to what we could possibly do with the Zone if we want to tighten it up we're on 30 minutes so we can only tighten it up on a shorter time frame we're going to go down 15 minute we don't see anything maybe at the 10 minute we see something nope and why wouldn't this be a Zone guys I'll let you answer this on on on in your head right there's a battle on that green candle you you see the battle on the green candle so that wouldn't make it a Zone if it was we could have marked it again this wouldn't be a a Zone either why not because there's a battle on the green candle I'm showing you guys though do do not do not do this and look how easily that zone got broken through boom right and instead it went to the 30 minute which was a Zone okay so we don't want no battles there okay we going a 5 minute this is very short term okay and we don't really see anything so we're going to have to leave that 30 minut on there because it's really the only thing that we have unless we had something else that's a whole another story but in this case we didn't have anything else we only had that 30 minutes so that's what I'm going to leave on my charts okay now understand okay we don't want to battle on the top of the green candle so I'll give you another explanation it does not it does not matter what kind of formation it was we don't want that battle on that green candle we don't want the battle up here this is no bueno okay do not want the battle up there okay now when it comes over here same thing okay when it comes down to this we don't want a battle either okay like that over here all the way up here like we can have it to the point where it's uh maybe again at that percentage of the candle but that's about it so now let's go over some examples on our charts okay that way you guys understand we are on Demand right now so this is for the zones okay so um we're going to always start on a time frame and I forgot to mention this but the time frames that I use are the ones up here 4 Hour 3 2 1 90 45 30 15 10 5 and that's it for zones okay um when it comes to entries and exits which which we'll talk about later I sometimes use Up 3 one and 15 second even okay but let's start on the 4 Hour let's see what we have okay so just just simply demand here okay so Bas we have the basic candle does everything line up here guys of course right so you don't have to take too much time on it we have the Basin candle we have this okay and it worked out perfectly this Zone this is a Zone aggressive move no battle at the top of the green candle perfect okay and we're just now going to go again is this a demand Zone yes we have the basic candle the wick is fine these Wicks are always going to be fine the zone is small it's not complicated and there was again uh uh uh this W is fine and the aggressive move is nice okay now take a look at this though is this a demand Zone it is so check it out we have the basing we have the two wigs the wig is fine here in the aggressive move you might say oh Danny there's a battle at the top but this is kind of like the farthest I would push the battle at the top right because again the zone is lined up at a key level so if that's the case then I'm going to keep that zone obviously my my goal is to see if we have something that looks much better for for example on a 30 minute it might look much better and I might mark it on a 30 minute okay so it just comes to that sentiment of feeling okay you know I like the Zone that's what I'm going to mark all right so we're going to take a look at the 1 hour see if we have any zones here as well and let me ask you guys this question would this be a zone I'm going to let you answer your head it would not be a Zone okay because of the wick up here right that is that exceeds a lot that looks pretty nasty right and and I have a feeling that that's just going to be a little too risky for me so I'm not going to mark it let's go into the 45 minute let's see if we have any zones over here okay no we have to end with the red candle oh look at this we have a zone that worked out perfectly we came in we bounced right look at the wick okay it exceeds 50% quite a bit but it's still a valid zone so I'm going to use that okay because I feel like that that move is very aggressive the W and and this is a very aggressive candle I get that feeling that this can be a good Zone that's going to work out so I'm going to leave that okay and this could have been my aoi and you'll see in the aoi video what exactly what I'm talking about cuz once we broke that aoi okay we had and fill to the first level of the Zone which is usually what happens perfect okay so again that that when it comes to zones that's what we're looking for at a valid Zone and a nonv valid Zone okay sometimes I feel like there's a little misconfusion there and now they shouldn't okay so now when it comes to demand it's the same Supply sorry it's the same concept but reverse right so we're going to have green and we're going to have red and then we're going to have green and on this case scenario guess what we're going to end with the green candle we're not going to end with a red candle okay so we're going to end with a green candle and then we're going to have an aggressive move to the downside okay two candles matter so guess what goodbye goodbye goodbye Okay so when it comes to a supply Zone okay we want to be sure that we understand that these wigs on top they don't matter these wigs can be however they want okay these wigs can be however they want but what does matter though is the Wake down here okay the Wake down here so down here this wig matters okay so if the wake is like this it exceeds it's vice versa right so we wouldn't mark this Zone okay because that Wick is too long if we were over here same thing okay if there's a fight at the end of this candle it would not matter in this case it would be righted this would not matter we don't want that okay it's too long okay so we want everything vice versa of a demand zone so that's what we would want if we see this over here we would want this like that and we will want this like that and we can have a small battle right here that's fine right but we don't want a big battle over here okay that's what we don't want okay so we need to be very careful when marking those types of zones okay and we're going to go look for examples when it comes to the type of Zone that we're marking over here right uh when it comes to supplies the same thing okay would this be is Supply zone no this would not be a supply Zone okay because again the basing is too big the Wake down here is too big we don't want that the B is not the basing is not too big this wake is just too big basing uh could I would say that's maybe about 32 33% of that canle so we could we could possibly work with it right but there's a lot of better things is this a supply no because of the Wake down here the Wake down here okay is this a supply no because of the Wake over here right so all these are invalid and valid and then we finally find one look at this we have the basing the wick on top does not matter apply okay this is a Zone and it worked out perfectly okay there's a small battle down here and that's fine we can exceed that because the Zone looks very nice okay so that's kind of what we want to Mark as a Zone okay over here is this Zone I wouldn't have marked this just because of the wick at the bottom okay I would not have marked this because of this Wick that's a fight okay this looks a lot better than this okay now same thing over here is this a Zone yes it's a perfect Zone look at that we have the aggression we have the move it looks very nice and this is again uh we came into that and we rejected perfectly okay so look at that same thing is this a zone no this is not a Zone there's a big battle down here we don't want that it's very very simple okay now how do you mark these zones okay so when it comes to supply when it comes to demand how are we going to Mark these zones okay because this is another confusion that we have as well okay so the way that we Mark these zones is and let's draw demand Zone let's draw Supply zone so for demand okay and then for Supply we'll talk about both okay so for demand okay if we take a look over here at this Supply Zone that we just had all right let's let's let's go over Supply first since we're already talking about it when it when it comes over here to this Zone okay it's that open of the candle okay candle opens for supply to the highest point of these two Wicks okay so you see how I got it from the open guys on Supply can take a look so look at this Zone this is a perfect Zone from the open this is the open of the candle all right we're going to grab it and we're going to move it over here okay to the top of the wig now if the wig on this candle would have been higher guess what I would have put the zone to that Wick it's the highest Wick of both so this Wick would have been higher I would have put it here but since this Wick was the highest one I'm going to put it there that's how you mark the Zone from the open to the highest point of the Weg okay we'll do another example for Supply okay okay let's see what other Supply Zone we have over here again we've seen a couple okay um this is another this could have been a supply Zone from the open look at the open to the highest point of the wick is it this Wick no it's this Wick and that worked perfectly we had some nice rejection then we broke through the zone and when we break through the Zone guess what look it when we close above on a 5 minute we close above right it's invalidated so we don't use that zone no more we already broke through right this is broken look it's working in and then it's broken here goodbye okay this is another Zone over here let's see we find another one so we can do one more example of of a qualified Supply over here perfect so we have the wick the wick is fine down there up there we have aggressive move how do we mark this the open to the highest point it's right here pretty simple and this worked out perfectly again you see how every single work that every single zone that we Mark right it's working out okay now same thing for demand what's the what's the concept behind demand it's from the open okay to the lowest point of the week so for demand check it out all right so we mark it let's say this was a demand we should have a demand Zone here somewhere we're going to go on a 30 minutes I know we had a demand there perfect right here so from the open to the lowest point of the wick so if this Wick would have been longer this would have been my demand Zone down here right but since this Wick is the longest one and it's not this this is the point that I marking to open to the lowest point let's see if we have anything [Music] else okay this could have potentially been a Zone I don't like the battle over there the battle looks a little too strong for me okay I would would much rather find something better so something like this from the open to the lowest point oh that's not the lowest point this is okay boom that's my demand Zone okay and we just have to do a lot of a lot of it a lot of practice of it oh here's another one from the open to the lowest point is it this this is not the lowest point this is two candles matter and look how perfectly worked the first time wow and this time it got faked out let's see if this is invalid Zone okay so you guys see how we just Wicked if if we Wick just a little bit is still valid if we wake a lot like all the way down here that's invalid okay that's completely broken all right so be careful with that so that's what would make a Zone invalid and that's what makes a Zone valid okay and um the next video we will talk more about 50% levels and the parts of zones okay so make sure you watch this video understand how to Mark a Zone uh what makes a Zone what doesn't if you have to rewatch this video do that because it's very important for you guys to understand how to uh Mark these zones a lot of people have a lot of confusion on what is a Zone and what isn't a Zone okay a lot of things that you guys Mark is not a Zone okay and I see it you guys marking places with battles and it's just not it all right so make sure we are marking the right zones let's do it guys and make sure you chart up