The Supply & Demand Strategy I Wish I Knew As a Beginner

the big players the players that have billions of dollars if I had to start all over as a beginner it's definitely a strategy that I would trade every single day So today we're going to talk about trading supply and demand because if I had to start all over as a beginner this is definitely a strategy that I would trade every single day and the reason why is because when it comes to trading guys we have the small players which is US retail Traders we talking about you know Traders that's actually trading from home and then we have the medium-sized players and these players you know are like prop firms that have Traders working for them and they are trading around maybe 50 to 100 million dollars right on the capital and then we have the big players okay we are talking about the players that have billions of dollars to play around with when it comes to trading the market okay now the big players they are much smarter than us they have more information than us right they are much quicker than us right overall they can move the market so you have to understand when it comes to the market it's best to follow the big players because they control the market or they are able to at least put push up the market or move the market and we want to follow these big players okay when it comes to success guys success leaves Clues okay now same thing with the market big players when they come in they leave Clues and the clues are supply and demand and that's what we are going to talk about today now when I trade supply and demand I trade something that's called short-term supply and demand what I use is the five minute chart and I use the five minute supply and demand levels and if you look at most people online they will show you zones that are on a higher time frame maybe the four hour the one hour and they will use those zones right and as soon as price hit those zones they would probably drop down to five minute and maybe try to enter in there I don't usually do that okay I like to look at the higher time frame for my support and resistance now let's go to the Chart real quick so when I mean you know when I'm looking at my higher time frame guys so let's say that you know this is the higher time frame right here okay and the Mark is going up now two reasons why I don't like to use the higher time frame I like to trade every single day sometimes I'm trading one market now if I'm looking for a higher time frame to come to a higher time frame supply and demand it might not come today all right I might have to wait you know a week for that market to pull back to this demand so let's say this is a demand level right here I might have to wait a week or two just for the market to pull back to that demand level so what I like to do is I like to use support and resistance and then when it reacts to that support and resistance I like to get in so let's say that this is the five minute chart right and we have let's say we have resistance up top and we are coming to that resistance right and then the market hits that resistance and sell off now this sell-off right here is called Supply and we're going to talk about that later now this is what I want right here I want the five minute come back to this Supply right here because we created the supply on the five minute chart and then I want to take that trade to the downside so let me show you guys some examples on some charts real quick all right so when it comes to supply and demand we are looking for aggressive selling and aggressive buying okay so for the most part you really want to see maybe three aggressive candles in a row or maybe three aggressive red candles in a row but um sometimes you might get maybe like this right here we have aggressive selling right here and there's only like two candles but for the most part in general you really want to see three candles or more okay so right here right we have um aggressive selling right here so how do we get in first of all we have to mark down our Zone the best way to mark down his own right it's actually two ways I do it um I actually either if it's not a lot of information around here I just use the the first candle that pretty much started to move to the downside right so notice how the market came to that Supply Zone and it didn't react at all this is why in the beginning if you are trading supply and demand it's best to wait for reactions because some of you guys want to get in just because you see a Zone and you know the market might blow past that zone so it's best to wait for some type of confirmation we're going to talk about that right now so we blew past this Supply zone right here right remember supplies when the market is going down the man is actually when the Market's going up so notice how we have this aggressive selling this is not us guys we can't push down the market like that and also notice how we have this aggressive bind right here this is not us again this is the big players that have billions of dollars that can actually move up the market so we want to follow them because again they are much smarter than us much quicker than us they have more information than us so we need to follow these guys because the whole idea about this strategy is when price comes back to this Zone it's a strong possibility the big players might come back in the market and push up the market now might push up the market only for you know maybe for you know five minutes or they might push up the market all day but we don't know as long as we have a opportunity to get in the market and scalp it or they trade it we are good to go so right here notice how we have a demand area right here and the market never came back to this demand area so this is a good one right here because a lot of people always ask me hey what if the market number comes back to a level oh well skip that trade and wait for the next trade so notice how we have another strong push to the upside right here and now we have our zone right here okay so the market came back to that zone notice how we have a nice bulge bar right here so we are going to either use a bullish bar or a nice rejection bar or if the Mark is going down a bearish bar or a nice rejection bearish bar now we can also use a double bottom or double top okay and we're going to show you guys some examples later so right here we have a nice bonus bar right here and we can actually get in and look for a nice scalp or a trade to the upside now you know your exit could be the high okay or it can be you know a trail where you're trailing your stop-loss there are so many ways you can actually get out the market but the easy way right now is just maybe just go for the high and until you get used to understanding the market and then definitely go for much bigger targets now you can definitely say you know what I want a fixed Target only two to one or three to one you could definitely do that too now where do you want to put your stop loss you can also put your stop loss either below the bar that you're getting in or below the Zone okay it's up to you every Trader has a different way they use their stop loss so it's up to you you back test that and see what works for you now let me show you guys another example all right guys so right here we have aggressive buying right here you see this right here Progressive buying now before we had the aggressive buying we had aggressive selling you see this right here guys look look at all these red candles in a row so as soon as the market comes back to this area right here we want to look to sell the market now check this out again remember I said that if I'm looking at the market right how do I want to draw my zone you can start with one candle that started to move or you can look at the candles that's around the move okay so a lot of times I would if it's a lot of candles that's around the move I will just put my zone around that candle because sometimes it will never come to that last candle okay but anyway it came to that that zone notice how we have this rejection okay so this is the rejection way to get in okay nice rejection Candlestick short this right here and you can look for uh again a nice two to one or a nice Target maybe to a support level or demand level okay now we have Demand right here now this Market is a range in market so you can definitely use the tops and bottoms so we have this aggressive buying right here and notice how it came to that demand level right here show you a nice bullish bar you could definitely get in right here for that scalp or to that upside right here let me show you guys some more examples all right so here's another example right here guys notice that we have a nice sharp move to the downside okay it came back to this Supply area so again I noticed that we have a lot of candles around it so I'll just put the Zone like this right notice how we have uh selling and we have a nice little double top situation going on so I told you guys before you can use a nice bearish ball or bullish bar or a double top okay so we have a double top going on and you can short this again you can put your stop loss either above or below the setup or above the zone is up to you and you look for an exit maybe at a support level okay so that is another example let me show you guys another one so right here guys we have a demand example so we have aggressive buy-in to the upside so notice how we have that aggressive bind okay notice how we have this nice Bulls bar and again we look for that long to the upside and you know you look for your Target okay now I do have a supply and demand indicator that will help beginners spot these Supply and man zones let me show you guys that real quick all right so here's the indicator guys now we have this demand level right here okay now first we had another demand level okay right here now notice how it came here and then um it shot up and then you know it dropped um again you're dealing with indicator so it's up to you if you want to take this the main level or this strong one it doesn't matter guys because you're not going to win 100 okay I want to show you guys some losers too so if you took this one this is a loser now it came back to this zone right here notice how the indicator shows you long confirmations too that will help you you know maybe just give you confirmation to get in the market and notice how it went long right here and then okay um you know this one got back your money and plus some so let's say this was a loser right here you definitely got back your money and some um with this trade so this is the indicator right here again this is for beginners to get your feet wet if you don't understand supply and demand if you don't understand supply and demand um this actually comes with my program for free and that's in the description description so check that out I actually have a special going on so make sure you check that out right now now let me go to another example okay guys so we are back now look right here guys we have a nice aggressive buying right here now notice how the market went below this zone right here okay this is a very good you know example right here because some of you guys see this and maybe you won't take this trade now a lot of people say if it breaks the Zone the zone is invalid me personally I say if it breaks it just a little bit and price goes above that zone again to me the zone is still active so right here notice how we have a nice double bottom right here okay and also um you know bullish bar coming in to me this is a long to the upside and you could definitely uh have a nice winner right here okay so let me show you guys some more examples so right here guys we have a supply uh example now notice how we have aggressive selling to the downside now again we have a zone right here but it never came to the Zone okay now we have aggressive selling right here okay now it came to this zone right here all right and this is something recently you know a trade that I was in notice how we came here we had a nice rejection to me that's a sign that I need to get the market short position right here guys for a nice scalp to the downside again you can look for rejection double top whatever the case is and go from there you can put your stop loss above the zone and you go from there now let's look at the indicator real quick okay so guys look at this right here the indicator is showing you this nice Supply right here but again never came here it could show you this Supply right here we just talked about it came here notice how I have a nice short confirmations right here and price went to the downside so again you can do this to get your feet wet or you can just train your eyes to look for supply and demand yourself I don't talk about the indicator too much but you know again if you know how to read price action you can do this yourself or you can use an indicator to help you now let's show you guys some more examples and we're going to wrap this up all right guys so we have aggressive selling right here and basically the market came to this nice rejection okay short right here now I know some of you guys are going to ask me you know can you short the level more than once and the answer is yes but you know just be careful because sometimes it will blow past the level the next time so look for a decent reaction uh right here we had a nice double top so you could definitely had a nice scalp to the downside and also notice how I'm the last one we broke the Zone okay remember I told you guys before if it breaks the Zone it doesn't mean anything now did it go far right if it just breaks the Zone just a little bit notice how I just broke the Zone a little bit to me that's still a valid trade so notice how you still have another trade going on right here okay and boom this trade was a nice winner all right guys so that's pretty much the supply and demand strategy that I use I'm looking at the five minute supply and demand zones because I like the most recent zones especially on the five minute chart because again the one hour or the four hour zones the market might not reach those zones you know today okay or sometimes those zones could be so wide to the point where you know it's just like okay do I shut it right here the beginning of the zone or the top of the Zone but anyway that's how I like to do it you can actually use the higher time frame zones there's nothing wrong with that I you know I'm all for it if it works for you but this is the way I like to do it and you know back test this see if it works for you again guys this is how I'm doing it and this is definitely a strategy that I would use if I'm starting right now as a beginner if you enjoyed this video hit that like button hit that subscribe button and also if you want to learn more guys check out that special Below in the description it comes with the indicator for free and also if you have any questions comment below because I try to answer all your guys questions thanks a lot for your time and please have a great day

Channel: Day Trading Addict

Views: 256,925

Keywords: Supply and demand trading

Id: CWjUmLZwj_c

Length: 13min 43sec (823 seconds)

Published: Fri Aug 25 2023