RULES OF THE GAME IN TRADING SUPPLY AND DEMAND TRADING

After all the examples given, time has arrived to give you the exact rules of how I trade with supply and demand zones. By
now you should have realised that I use the bull/bear trap as an additional confirmation. Let’s see how below

THREE BOXES TO TICK FOR A SUPPLY ZONE

3 MAJOR RULES FOR SUPPLY ZONE
As you can see from the screenshot above, there are 3 major rules that you should follow before you commit to a trade.

They are:

1. There is an established supply zone
2. Price breaks above it and forms a bull trap
3. Price action pattern in the form of a bearish engulfing, inverted pin bar

SUPPLY AND DEMAND EXPANDED

THREE STRENGTHS OF SUPPLY

STRONG SUPPLY
The stronger the supply level, the faster and longer the move will be. In the 3 examples above, you might see the 3 types of supply- strong, medium and weak.
The length of the candles is biggest when supply is strongest and vice versa.

THREE STRENGTHS OF DEMAND

STRONG DEMAND
The stronger the demand level, the faster and longer the move will be. In the 3 examples above, you might
see the 3 types of demand- strong, medium and weak.
The length of the candles is biggest when demand is strongest and vice versa.

RETRACEMENTS
The rule of a thumb rule say that the more times a supply or demand … Read the rest

BEAR AND BULL TRAPS AT MAJOR LEVELS

BULL TRAPS
Bull traps might also be viewed as places where price is divergent. In other words, there are two highs where the second one is failing to hold higher and eventually pushes the price to a new low as the example to the left shows.

BEAR TRAPS
Bull traps might also be viewed as places where price is divergent. In other words, there are two lows where the second one is
failing to hold lower and eventually pushes the price to a new high as the example to the right shows.

BULL&BEAR TRAPS VS. BREAKOUTS
The majority of retail traders do actually love to trade breakouts.
Trading breakouts are very easy to … Read the rest

SUPPLY AND DEMAND
Supply and Demand zones do offer a great insights into the structure of any market. If you have an idea of how to trade with support and resistance zones, you might find supply and demand zones very similar.

WHAT IS A SUPPLY ZONE
Supply zones could also be defined as an active resistance level or a place where traders are  selling huge amounts.
These levels are more broad than a resistance line. They are very similar to resistance zones.

WHAT IS A DEMAND ZONE
A demand zone is a broad area of support. It is also a level concentrated in buyers.

PRICE ACTION AND SUPPLY AND DEMAND ZONES
Another characteristic of supply and demand zones is … Read the rest

Sniper Order Block Entry Trading Strategy

Please take a look at this article where it was previously discussed what stop hunting or liquidity hunting is in trading. Supply and demand equilibrium drives market movement, while stop loss and liquidity hunting generates a large number of orders enabling major participants to enter the transaction. Liquidity is the foundation of market movement.

Core Concept of Smart Money Trading System Using Order Block

Following the trades of significant institutional investors or traders is referred to as “smart money.” These individuals are frequently considered to have access to more information and resources than individual retail traders and the ability to influence market movement.

Who are  Smart Money while trading?

• They can influence prices and