đź“š Supply Zones: How to Identify and trade them?
Hello Traders. Welcome to this Post about How to properly Draw and trade demand levels. In this post first post we will talk about how to draw it. if you can memorize the simple methodology, then you can start applying more advanced theories on top of them! Make sure to follow for more content
Frequent Questions :
-----
How to Draw it ?
You just need to start with current price on the chart . Then look left and down until you find the origin of a very strong drop in price. Understand that behind every drop and strong mouvement someone is behind leaving a footprint.
Identify the base and mark it from the messy top of the base to the extreme bottom.
When to Know when we have a valid demand Level?
Rules:
When you have a very strong bearish monthly structure , supply levels tend to be accurate a stronger. In downtrend they are valid but less accurate. By other side we like to trade the first retest. The more a zone is being tested the less accurate it becomes.
When to execute a trade in a valid demand area?
→ It is possible that price retest the zone. If that happens , from my experience you need to combine multiple factors. One of the most important is the fundamental. when you have a strong fundamental trend confirmed , then a pullback into a supply level in a strong downtrend structure is valid. By other side when you have valid micro signals in a valid macro sell zone then, probably price will be using the supply level to continue to the upside.
When a Supply level is invalidated?
âť—The purpose of Supply levels are to push the price to the downside. in that way a supply level is invalidated when price cross beyond the base . By other side if price consolidate a lot in a strong supply level and slowly start to break the zone keep in mind that the price can slide up and totally invalidate the supply zone . make sure to only trade the first retest of the zone. Never trade MULTIPLE retests
âť—Watch out for the big time frames trend
I hope this Educational Post was helpful . Make sure to follow and let me know in the comment section if you trade supply and demand ? have a nice day!
Frequent Questions :
- How to Draw a Supply level ?
- When to Know when we have a valid demand Level? and Invalid level
- When a Supply level is invalidated?
- When to execute a trade in a valid area?
-----
How to Draw it ?
You just need to start with current price on the chart . Then look left and down until you find the origin of a very strong drop in price. Understand that behind every drop and strong mouvement someone is behind leaving a footprint.
Identify the base and mark it from the messy top of the base to the extreme bottom.
When to Know when we have a valid demand Level?
Rules:
When you have a very strong bearish monthly structure , supply levels tend to be accurate a stronger. In downtrend they are valid but less accurate. By other side we like to trade the first retest. The more a zone is being tested the less accurate it becomes.
When to execute a trade in a valid demand area?
→ It is possible that price retest the zone. If that happens , from my experience you need to combine multiple factors. One of the most important is the fundamental. when you have a strong fundamental trend confirmed , then a pullback into a supply level in a strong downtrend structure is valid. By other side when you have valid micro signals in a valid macro sell zone then, probably price will be using the supply level to continue to the upside.
When a Supply level is invalidated?
âť—The purpose of Supply levels are to push the price to the downside. in that way a supply level is invalidated when price cross beyond the base . By other side if price consolidate a lot in a strong supply level and slowly start to break the zone keep in mind that the price can slide up and totally invalidate the supply zone . make sure to only trade the first retest of the zone. Never trade MULTIPLE retests
âť—Watch out for the big time frames trend
I hope this Educational Post was helpful . Make sure to follow and let me know in the comment section if you trade supply and demand ? have a nice day!
MY LINKS OVERVIEW:
If you want to learn our strategy:
🟡 www.airforexone.com/ebookv5
If you want to join our vip discord:
🟡 www.airforexone.com/vipmembership
OTHERS
🟡 linktr.ee/airforexone
If you want to learn our strategy:
🟡 www.airforexone.com/ebookv5
If you want to join our vip discord:
🟡 www.airforexone.com/vipmembership
OTHERS
🟡 linktr.ee/airforexone
