Drawing supply and demand zones

[oldmate]

Hey guys,

Drawing supply and demand zones has been the best thing I've added to my trading, hopefully this can help some of you out there too. If you're not using support/resistance, supply/demand or any other method to determine significant areas then I highly recommend toying with these things and adding it to your trading plan.

I was a trading noob when I did Anil's course, so I took his word for it that these things don't work, but I was trading blind (like Anil). No profit targets, no idea where there is a high probability of price turning, we were just always taking every setup which presented and trying to pick the reversals all the time, the worst way to trade! Price DOES react to certain areas, it's so bloody obvious if you actually look at the charts. To say they don't work is like saying a trend doesn't work (which Anil also says doesn't exist, what a retard), but of course you can't just buy / sell areas, you need to have a tested method and understand what's happening (Anil also says that understanding why the market moves is not relevant too!).

When you learn about supply and demand you'll learn WHY the market moves, and it is important to understand, then you can capitalise on it. In short, institutions/banks make the market move. The whole sellers vs buyers concept is much less significant as the banks place millions of dollars worth of trades, that makes it move, simple! So to make money, you need to follow what these guys are doing. Institutions don't care for waves, Elliott, Gann whatever, they just want to pay best price. (I'm not saying these things don't work, but just looking at what the banks are doing.)

Now because they are opening such huge orders they often can't get them all filled, because someone must be selling/buying to then. That's where you come in, retail traders give them the orders they need by getting stopped out or closing losing positions. How many times have you gotten into a great position, move it to break even then price comes back to that spot takes you out and then it goes? That's because you are doing the same thing as everyone else, placing stop orders at flags etc. With supply and demand I place limit orders AFTER price has made a big move, with the expectation that price will retrace to that area and they will get the rest of their orders filled at given price. Of course price doesn't always retrace, just like a flag doesn't always play out, this is trading. However it's much safer, you get a better RR and you don't need to hawk over the charts all the time.

I use support and resistance a little but supply/demand is much more reliable and consistent as there is a methodical approach to drawing them. If you're interested, then the first thing to do is go here: https://www.forexmentoronline.com/how-t ... and-zones/
This website has some great info in it, you may get lost in reading other articles, but this is the fundamental approach to drawing zones simply and accurately explained.

Once you've done that and can see how price reacts to these levels and you want to learn more, go to https://www.set-and-forget.com/ and sign up for the free ebook. I've uploaded it here for you to look at, but if you sign up you'll get some videos e-mailed to you giving you further explanation. You won't get spam or anything, Alfonso seems to be a very trustworthy and a great guy as you can tell from his demeanor and all the free info he gives away. In the pdf there is a chart on how to draw zones on page 28.

My trading strategy is pretty much trend following, where I look for price making higher highs and higher lows to confirm an uptrend, and a directional bias on the higher TF supply/demand zones. Counting waves isn't the core part of my trading strategy as I found that assuming a trend will continue (when one is present) gives much greater return than continuously trying to pick reversal points, which is what the majority of traders do (Anil). For you Margin traders, surely you can relate to this, where you think 'structure is complete' then price just keeps going and going. I got fed up with it, so just follow the trend now, easy.

I hope this is useful for some of you. I'm happy to answer any questions.

EDIT: turns out I can't upload pdf files, so best to just sign up and get it e-mailed to you.

[vlad]

Hi Oldmate,

This is amazing insight and I would love to learn more.

You can upload your pdfs via this website https://www.filedropper.com/

And share links here

Thank you.

Supply / Demand + elliott wave will be killer combo for me

[Karma]

Thank you for the info

[Benz]

I beleive the latest Neely River Theory (NRT) is also a refined version of this Supply- Demand concept combined with wave theory.

[oldmate]

You can access the pdf from set and forget here:
https://drive.google.com/open?id=1jkuEm ... hSDCPq28eC

[oldmate]

Interesting, thanks Benz, I've never heard of it but I'll have a look into it.

[Oxygen]

Hi Oldmate,
When it’s come to supply demand listening to Dr. Hank Pruden is a good beginning.(https://m.youtube.com/watch?v=GIXPr2WQFdQ)
I have had period when no-thing works, I took abode in Wyckoff trading method
Supply demand concept is an eye opener, though forest doesn’t have volume, I still use tick volume in all my charts
Which shows hand of large cap traders like ....

Thanks for initiating this discussion,

[vlad]

Please share NRT materials for me here please

[fxMarshal]

Drawing supply and demand zones has been the best thing I've added to my trading, hopefully this can help some of you out there too. If you're not using support/resistance, supply/demand or any other method to determine significant areas then I highly recommend toying with these things and adding it to your trading plan.


I use support and resistance a little but supply/demand is much more reliable and consistent as there is a methodical approach to drawing them. If you're interested, then the first thing to do is go here: https://www.forexmentoronline.com/how-t ... and-zones/
This website has some great info in it, you may get lost in reading other articles, but this is the fundamental approach to drawing zones simply and accurately explained.

Very helpful article ,oldmade !

for those friends, who are noob but ready to go after S/D or S/R vision of market, I can recommend Timon Wellers
Zone Trader Training weekly reviews too.

Here is the link
https://www.forexreviews.info/category/trade-setups/

Tymons reviews are based on his ZOne trading course which costs some years ago $50