Do This Every Morning For Better Supply & Demand Trading (250/day)

do this for a better supply and demand trading so if you want to get good at supply and demand guys first thing you need to do is get some sleep like really like some of you guys 3 hours of sleep 4 hours of sleep you know maybe you you know drink some coffee or whatever cases but we all know that sleep is a necessary thing we have to get sleep guys so you can't deny that get enough sleep so you can actually perform at a high level this is a professional field we want to uh make sure that we are on point every single day mentally and one way to do that is to get enough sleep now next thing you want to do to actually trade better when it comes to supply and demand you want to prepare yourself every single day to actually fight your bad habits because if you dismiss your bad habits you're never going to be a good Supply demand Trader period so we have to fix our bad habits right so you should have a list of the bad habits that maybe you did last week whatever the case is so this week let's say we got to focus on fomo because we know that last week for some reason you were chasing like crazy all right so this week I'm going trade with a purpose right lot of you guys just want to trade to make money a lot of you guys want to trade just because the market is open no trade with a purpose trade to change your behavior all right it's not all about your trading sometimes know sometimes it's just you know your behavior change your behavior so let's trade with a purpose today right I have to focus on not chasing trades okay stick to the plan now the next thing you want to do you want to focus on fres zones right so what's the best time frame to focus on when it comes to supply man zones doesn't matter guys there is no such thing as best you can use the 1 hour you could use the 4 Hour you could use the 5 minute the 15 minute doesn't matter okay what fits you right uh that's why back testing is so good because you can see all right this fit me now uh me personally I like to use the 5 minute chart um and you know go from there but it doesn't matter so let's go to the Chart real quick so right here we have the 4H hour chart we have a zone so let's say that we didn't see uh that information yet and we just saw this move right here right so this is a fresh Zone meaning that the market didn't come to that zone yet so we are looking for these fresh zones every single day and we're looking for the market to come to that zone the first time because we actually want to take trades at that zone um when it's fresh because that's when um most likely the buyers are probably going to try to defend that level so we want fresh zones not zones that are been tapped in already so right here we see the market come to the zone and we see a nice reaction right again it doesn't matter what time frame you're using you can use the 4H hour chart a 5 minute chart the 1 hour chart doesn't matter now after you see your fresh zones the next thing you want to do is you want to draw your zones so there's different ways to draw your zones but make sure that you draw your zones the same pretty much all the time all right so let me show you how I draw my zones all right so this is a supply zone right here right and basically it's a nice sharp move to the downside right nothing really to the left right so to me I would just use that candle that started to move right the beginning of that candle right here and I'm looking for the market to come back to that candle right this is a nice simple way to draw Supply or demand I'm going to show you guys another example uh where I would probably draw the Zone a little bit bigger so let me show you guys real quick all right so right here guys we have a demand right here right so you could definitely use this level right here which is cool right but also you have to uh look to the left right and look what we have here we have one two right this nice support uh area right here that's holding this up too so you can also start your zone right here because sometimes it might not even get down to here because we have this support zone right here and most likely price might react to that level so it all depends on if you have information to the left that could actually you know act as uh some type of support or resistance um that's near your Zone uh sometimes I would actually include that uh with my zone but for the most part you want to start with the candle that started the whole mve now after you find your fresh zones after you mark up your zones right the next thing you need to do is see what direction the market is going for the day and uh go for de right and then once you find the direction you have to look at the market overall to see if you even want to trade okay does the market look clear does it look sloppy does it look you know slow or whatever the case is find out do you even want to trade that day if not maybe wait for the next day okay but see if you really want to trade that day let me give you a good example all right so you know if I'm looking at a market like this that's choppy do I really want to trade a market like that probably not so it all depends on what the market is doing that day do you even want to trade do you even want to put on Capital do you even want to just use your mental Capital because even if you do put on Capital I mean it might stress you out so figure those things out before you even take the trade um that would definitely make you a better supply and demand Trader because you just don't want to take every single trade just because the market is open now let's say that you do actually see an opportunity like example right here so right here guys the market was going up and all of a sudden we went straight down we cracking lows right here okay so to me when I saw this right here we cracking lows nice selling pressure is a possibility that we could come back to reject this now we do have support right here that's holding up this market so you still have to be aware of that but when I was in the market um I was looking at the market to come to the supply now notice how it didn't really go exactly to the supply Zone because I drew my Supply zone right here but it didn't really touch it but it was close enough okay sometimes it will get to your Zone close enough right and it probably won't tap your Zone and it would you know just go down or go up depending on you know the market Direction but right here what I saw was the market was selling off right here right and we tried to hit that zone one more time and we had this crazy rejection right here that was a sign for me to actually say all right let me get in and not only that let me show you the one minute chart now I'm not telling you to look at the one minute chart because you know a lot of you guys probably can't even trade uh you know looking at the one minute chart but I just saw this wedge pattern right here too so I said okay the 5 minute is looking good uh the 1 minute is is doing some type of wedge we have this nice rejection right here I'm going to go short okay now I went short right here because I saw a reaction and uh I was going for um a big winner because I'm looking for uh you know the market to just basically do a reversal right so a lot of times my reversals I look for a little bit bigger targets but anyway um it happened so quick that I really didn't get the size that I want but it is what it is and let me show you guys a quick um clip of this so right here guys you see that um I'm in the market and the market is pretty much going my way it happens so quick that I didn't really get the size that I want uh but anyway it's pulling back uh to this key level right here and I'm saying to myself most likely they going to probably reject that level and I wanted to add just a little bit more nothing too crazy a little bit more to the to the winner and I'm looking for uh you know a continuation to the downside so let me fast forward this all right so right here you see me uh pretty much about to get out everything went good all right um and if you look to the left I'm up $2,529 right now let me just break things down real quick because again we talking about you know how to be a better supply and demand Trader the next thing you want to do is when the market comes to your zone right you want to wait for some type of confirmation right look for some type of reaction now you could go straight into the Zone but I think that that's only for certain times I don't think you should try to do that every single time unless you have a certain setup that you see every single time um and you say all right that's when I'm going to go in without confirmation um again there's nothing wrong with going in without confirmation but I I believe that especially if you are new to supply and demand I noticed that a lot of new Traders they just take every single Supply demand you know level that they see and honestly that's not a good thing and if you don't even wait for confirmation you take it every single zone most likely you're going to get wiped out so once you get good at Supply demand then probably you could say all right I probably don't want to wait for confirmation let me just throw a limit order you could do that uh but a lot of Traders look for confirmation and some Traders don't look for confirmation it doesn't matter at the end of day is all about what fits you uh but in the beginning you definitely should look for confirmation I like to look for confirmation so that's what I did I look for confirmation look for a reaction right at the level you saw that reaction and I went short the next thing you want to do to actually get better at supply and demand is you want to be okay about getting stopped out right so let's say you look for a reaction you got stopped out guess what it's not the end of the world right we all go through that but here's the thing you can always reenter okay a lot of people will get stopped out freeze up or get mad but they don't look for another opportunity let me see if I can show you guys a good example of that all right so let's say that uh you know you looking at this Supply zone right here and uh you went short right here let's say you put your stop loss above the candle and you got stopped out well notice how you got stopped out but it didn't go that far right it just went up a little bit stopped you out a little bit and then went right back down so you know in those cases guys you know um you could try again and a lot of times you know you would get your money back plus some so don't be scared to re-enter especially if it looks like a great opportunity um sometimes you might have to try you know once or twice for a good opportunity it's just what it is now what happens if the market doesn't go to your zone right so right here we have uh a nice demand level right here and we waiting for the market to come to that demand level and it never came to that demand level what happens nothing okay you wait for uh the next day or you look for other opportunities on other markets right so it just you know just skip it just what it is it's part of the game sometimes it won't never come back to your supply and demand Zone it's just what it is now another thing you can actually do to make yourself a better supply and demand Trader is you can actually combine levels with your supply and demand so a good example is let me show you so right here guys we have a supply zone right here and uh if you look to the left let's see if we have anything that's matching up to this zone so we have resistance right here definitely you can't deny that this resistance because we had 1 2 3 so you know that this is a key area right here and then we have Supply uh lining up with that uh resistance so to me when you see that you have two things that are together to me that could be a high quality setup because you have two levels that are coming together and most likely those levels are going to hold now so that's another thing you can do to actually make yourself a better supply and demand Trader is combining levels like support and resistance if you want to use FIB levels if you want to use uh supply and demand or the the daily high or the daily low so many things you can actually combine with supply and demand and if it lines up with that zone most likely that zone is probably going to hold up all right so that's pretty much it guys make sure you do these things in order to be a better Supply demand Trader also have a checklist because you don't want to rely on your memory so having a checklist every single day is definitely a good thing to do uh that's all I have for you guys hit that like button hit that subscribe button if you want to learn more on how I trade link is below in the description thanks a lot for your time and please have a great day

Channel: Day Trading Addict

Views: 33,832

Keywords: Trading

Id: Ozv36yKO5JQ

Length: 11min 28sec (688 seconds)

Published: Tue Apr 23 2024