All language subtitles for TraderFXChibiunzin 601 - 4

something called market
efficiency which is coming in

further ado, let's move on to
the next video. I'll see you

okay so supply zones and demand
zones will form absolutely

recap this video, definitely do
that. You need to make sure you

in the previous video that is
where we can then stop buying

new high we don't have any
confirmation the trend is

the trend in the next video
we're going to talk about

are down and sound with every
single concept we talk through

thank you for watching this
video that was a good

everywhere but knowing how to
read them and which ones you

all kind of comes into a
process but we're really going

line with both the concepts
we've spoken about so far it

to go through processes when we
hit the high time frame and low

time frame application sections
of the course. So without

shifting yet but when the
market structure breaks down

supply then when we push
through higher high higher low

over there. Make sure you take
notes and if you do need to

for long term good results that
is a key consideration of

demand in a downtrend supply
until the market structure

demand and look towards selling
supply because we have here

uptrend shifting into a
downtrend which is confirmed at

this point and then we can
start selling into the trend

tells you that it has shifted
do not do anything different so

introduction to supply and
demand showing you where it

say we are in an uptrend from
this point we have a higher

this previous price area We so
making sure that you're trading

high or low buy demand and then
when the market fails to make a

only selling supply in
downtrends is very important

successful it's just that the
market decided to fail around

sold some of these other supply
zones for example like this one

comes in the market how to plot
it how to use it in line with

should and shouldn't trade is
very important in an uptrend

the trend down now when the
market shifts and the trend

high higher low higher high
higher low so we should not be

with the actual trend and only
buying demand in uptrends and

is actually this one at the end
here and this is just by

and forms a bearish break of
structure like we spoke about

high higher low we want to buy
demand but we do not sell

told us that the market is now
bullish we've made a higher

actually selling supply zones
we can see once again had we

zones not supply zones when we
get a few breaks of structure

the upside we no longer want to
focus on supply zones if we

we want to buy demand but we
will not sell supply higher

losing if you were trying to
sell in but the structure has

complete look okay there is no
strategy to this being

zone area here we would have
lost it we brought this demand

supply and demand so here's a
little diagram of that let's

we would have lost the only one
that would have been successful

have a look at this area for
example you would have taken a

zones you can continually sell
into the market when the

like this which is showing us
that we are ready to move to

would have lost if we'd have
brought you know this demand

shifts that's when the time you
should start focusing on demand

opportunities arise and you're
just going to be able to ride

no reason to buy these demand
zones because we are moving

actually no reason to be buying
so until we see a structural

downtrend only trade supply
zones. Demand zones and supply

zone here we would have lost if
we brought this one here we

future. You should never
actually use them for entries

are going to see that a bunch
of demand zones do form, right?

would have lost and so on
whereas trading the supply

can see that the entries all
came from trading these great

zones can be used for targets.
We will talk about that in the

down and if we buy against a
falling market we are going to

be one just here. And there's
also going to be one you know a

problem is with this and also
one there yet so the problem is

lose so you can see that if we
brought this demand zone we

break like what we spoke about
in the structure video there is

it actually comes in line with
the market structure that we

with this though is we're in a
downtrend right so there's

few key considerations now if
you are looking to trade supply

go through now and then we'll
move on to the next video. A

trade. So that is supply and
demand, a few other pointers to

There's one here before this
impulse. There's also going to

little bit further down as well
towards this area but the

learn a lot about this concept
but this is an introduction to

supply and demand throughout
the course. You're going to

follow structure we can see
here we have an uptrend and we

zone wait for it to be retested
and ride the trend so basically

structure we can mark those on
using doji candles the last

trend. So in an uptrend, only
trade demands and in a

and demand successfully. First
of all, only trade with the

against the trend. So looking
at this downtrend area here, we

understand what it is, how it
works, how to plot it, and how

areas and we're usually looking
for the zone that broke

market is going up forming
higher highs and higher lows we

that is supply and demand
basically applied on a chart

just to highlight to you the
effectiveness of the strategy

little supply and demand zones
So we will elaborate more on

zone with stops under the low
we would still be looking at a

supply and demand is the first
step in understanding how to

structure and then following a
break of structure you want to

we can look towards the
previous higher low mark on the

look to buy if the market
continues to make a higher high

so on and from there when the
market comes in we can actually

candle before structure broke
the last candle for impulse and

2. 2R movement even though the
target did not get fulfilled so

apply a supply zone on and then
when price comes into that area

when you're in a downtrend you
are looking for a break of

on here to buy the market up
and continue it and I believe

want to look towards the
previous higher lows for demand

that is a prime place to sell
in a demand zone when the

refined areas regardless though
you would have got a nice trade

degree. Stop losses for me
personally would have been here

at this point we did fail to
make a new high and the market

about in the risk management
section we want to have those

we can do is just refine the
zone down so that we get a

we're using. Meaning had we
brought in on the top of this

we want to get the big risk
reward trades like we talked

did break down but regardless
we reached the previous high

this would have been a position
at least to quite a strong

talk about that more so in high
time frame application low time

clear area I mean we can just
work with the whole zone but if

frame application as well but
for the meantime basically what

retest that very nicely so
refining zones is good I will

filled this one with that break
and retest so now we've sold

time frames, 15 minutes or
above, you can actually opt for

point we see our first initial
break of structure where we go

movement you know that that
moves like this where we fill a

came about there we sell off
something like this so just as

get tapped. Now, when we are
trading low time frames, this

where we look for our first
buys because the trend has gone

getting in you know near to the
bottom and we can actually

been retested yet and also the
zone that broke structure to

of course in the low time frame
and high time frame application

back in and there's actually
going to be a buying side of it

you're on the 15-minute,
thirty-minute, hourly,

let's say for example the
market is not showing us too

can then do is look for the
zone the broke structure so

demand area which we may look
to refine on a lower time frame

for the sell and then on this
one yes we did have the light

retest could have been a
profitable trade there but we

extend this pretty far and then
what we have had from there is

another higher high the market
came down traded into this

much on this high time frames
but we scale it down to the

the one before that as well so
this is where we get the first

midpoint tap so that would have
been a really really good place

and that is another quick tip
as well refining the zone to a

said it's rare that we get a
supply zone or a demand zone

into the middle of the zone.
When you're trading on high

reversal and we went from lower
low to higher high so this

that worked out we had the
midpoint retest on this zone

as well where we can then sweep
up buys from this area to take

four-hour daily and so on.
You'll see from this example,

shift of movement into a
bullish market trend what we

isn't such a good approach.
That's all going to be covered

already retested because the
thing with supply and demand

higher in the trend now as you
can see and as I actually just

low draw down on that trade so
that is a demand zone after a

much power anymore so it's very
rare that we're going to see a

process but just an important
note for now is that the middle

five minute here we see that
the market did come in and

the sell side of it and then
when structure breaks we pull

from lower lows and lower highs
to a higher high just here this

an example position and then
what actually happened at this

stretch point here you'll
notice that we did indeed get a

retested twice we can see that
that did actually happen here

lower low lower high lower low
lower high selling opportunity

point and then what happened at
this point was we formed a

then pulled down and before we
broke the structure this next

actually execute any sell
trades so there we go then if

to actually buy from with a
very nice entry and very very

high is actually swept out the
previous lower high and also

the middle point for entries
because it often is going to

reversal these are some of the
best ones to actually buy into

point of a zone is a very good
one to buy from or sell from if

lower time frame is going to
give you a clearer area so

because we've only just
initiated a new trend so we are

from bearish to bullish so what
I'm showing you here is supply

this isn't a common thing but
what this is done is and trade

that would be this one here
pick out this zone and that is

and demand applied on a
reversal area you get to see

some more zones as well while
we're here what we can see is

and then come back into it
again we've obviously already

off again we'll be looking
towards the the one that hasn't

has already been retested so
the best most fitting zone for

is there is a supply zone there
so that could be worth focusing

structure so when we pull back
into the zone that broke

sideways or reversal candle
before the impulsive move there

refine that we will talk about
refining zones when we get to

bearish candle and that is why
they accepted. So for example

supply and demand zones because
basically what this shows is a

it all the while you need to be
thinking of is this zone

example of a bearish trend
supply zone okay supply zone in

zones is when it has been
retested it doesn't have as

supply zone and then back into
it again or fill a demand zone

structure that is where we want
to sell so that is a good

we just follow the trend
structure and I'll show you

retested and then sold off
again so the one you really

on however if we then look
below it is broken been

this small blue one there and
if we were looking at this area

we had a off forming another
lower low this broke the

consolidation. Uh you know we
spoke about consolidation when

this would be that one just
there and as we can see this is

but it ended up closing just
around the price that it

a bearish trend that's how you
apply it that's how you execute

actually see here with this
candle is the market opened at

then large wicks either side so
just like this one and you know

this level. It went all the way
up. It went all the way down

candle so these are really good
areas for supply and demand

towards this one just basically
looking for the last candle

spoke about before we obviously
had lower low lower high then

also the zone that broke
structure leading on to what we

is basically that but on a very
low time frame. So what we can

want to focus on here is going
to be this one because this one

if we were to look at this area
I would actually be looking

zones and they are generally
the best place to be drawing

of change the perception and
change the view of what you're

another thing as well so these
candles are called dojis or

spinning tops but basically
where we have a small body and

the last candle before we
really started selling off when

them from this area then if we
just cover this what we can see

small time frame and actually
compacted within that single

we have two supply zones so one
of them is this area and that's

normally going to opt for the
smaller area because it's the

towards probably this candle
the smaller one here and you

a suitable candle and normally
the candle I'm looking for is

can see here when I marked out
this initial example this is

really accounts for that whole
area if I am looking at a

the market ranges back and
forth. What the doji shows you

this one as well that we have
in the price there and also

here obviously going to
different time frames will kind

opened. So really this is a
consolidation just in a very

I'd be looking towards this
candle rather than this candle

before the impulse which really
in this instance is going to be

that one that I showed you.
These are really good for

your zone. Now I actually do
things slightly differently. Uh

bullish movement and we have a
huge zone like this I'm

bring this to the chart and
have a look at some real life

general rule is to use the last
bearish candle before the

we are looking at a big messy
area I'm going to use the one

we looked at this buying point
this was the last kind of

it does confuse people
sometimes when they look at my

large candle like so that
covers all of the range and

then if I want a tighter zone I
can go to lower time frames and

know accounting for stops under
the wick or I'd be looking

the last candle before the
impulsive move begins so as you

very messy area this I'm
normally going to opt for the

about the principles of supply
and demand now and it's time to

remember the reason behind it
all we are looking at the areas

examples. Now before we get
into it I just want have a look

looking at but I just find it
more fitting to use you know a

I look for the most fitting
area. Okay. So if we have a

more refined area so if I was
looking at a demand zone here

in this movement here we have
this last bearish candle before

bullish candle or the last
bullish candle before the

at how do we actually plot
supply and demand zones. Well a

that clears all of the highs of
the zone and actually just

the application process but
continuing with that topic if

whether we are buying whether
we are selling we generally

zone is not the zone the broke
structure and this

broke structure okay so if we
get a movement like this where

to focus on but if we get a
movement like this where this

want to look by a few
exceptions at the zone that

zone that broke structure okay
those four words very important

learn later in the course we
are generally looking at the

the bullish movement happens
and that is where you choose

supply and demand zones. I
don't always use that concept.

with the strength to drive the
market and that is where we

because that is the one where
the strength is coming from

want to then buy or sell from
in the future. So we've spoken

this zone broke the structure
then that is the zone we want

reacumulation area is that's
the one we want to focus on

zone that broke structure that
is the one we want to see

to remember we are generally by
a few exceptions which you'll

price hits this region again,
we can then just sell it again

area that people were happy to
buy at. This is a price level

the ones we want to focus on
then for our traits so

when we get a movement like
this where we get a push up and

that people liked to buy this
asset or this currency pair.

you draw a line on there and
call it a resistance the

speak of the previous move this
is the area we actually want

support is down here, price
bounces off it, resistance is

opposite a supply zone is the
exact same thing but in a

the structure that shows us
that the strength to break

higher high and the correct
comes in. The bottom of that

okay so that is the basic
premise of supply and demand we

the movements at the bottom of
each corrective move like this

actually happens in the market.
Most traders first of all are

but sometimes we are going to
see these phases where we

so this is a very important
thing to actually keep track of

corrective move basically
within that substructure so to

see the markets pushed up from
this zone but failed to break

movement, we're normally going
to see a demand zone and that

up here and consolidate like so
and then we get a move up this

go and see supply and demand
that is going to be how we do a

basically as a quick clear note
this is the one thing you need

consolidate before breaking and
these zones are going to become

premium price area again that
nice price area where people

refocus on this level for
shorts once again and when the

demand zones. We are buying
demand because it's the area

buy the areas the strength is
coming from. If for instance we

is where the buyers orders came
on which drove the market

commit to a market often times
it's going to be in the lows of

movements as well so we may get
a demand zone like this and we

demand zone there and we are
looking for price to trade into

can see this is actually the
area that broke the structure

you know reaccumulation
rebuying where the market is

the market comes back into it
we can say right this is an

other big place that you're
going to see supply and demand

structure or we get demand zone
that forms within the

through. So, we know that this
area that we found is a large

focus on when it comes into
buying because you have to keep

then we consolidate and then we
take off we then want to focus

buyers buying and where are the
sellers selling when we have a

And we can see that if we look
towards the bottom of the large

when we see this take off that
shows us that it's this area of

to be accumulated. So then we
can actually use that and when

spoke about the battle between
buyers and sellers and how when

may get a supply zone at the
top of a movement like this so

to buy in. So we want to buy
the strongest areas. We want to

on this zone instead okay does
that make sense and that is the

what that really means starting
off then we have this initial

structure is not coming from
here. That shows us the

just look for where the buyers
took that control and then use

actually look to place orders
here to continue the market to

where the buying comes in. It's
the area we've seen buying come

strength to break structure is
coming from this point here so

they form is at the bottom of
movements and at the top of

actually follow the real flow
of orders in the market okay so

in in the past and we know it's
an area that people are happy

consolidate for a little bit
before making a large push to

supply and demand zones form
and that is midway through an

is basically a level that price
bounces off numerous times like

impulse so let's say then we
are in an uptrend like so we

reacumulate or basically an
area where the market flats out

demand zones to be filled
however before we actually get

up when we see this however
that shows us that this buying

in mind the reason why we are
buying and selling supply and

the upside. And basically what
we're doing is following the

here we've stalled here in the
around this price area then

are happy to buy people rebuy
the market makes another move

demand zone we have an area
where buyers come into the

lot of trades where we are
looking for those supply and

actually built the strength to
make the next move up and as we

has actually dried out a little
bit and we've actually stopped

while new buy orders are
accumulated now let me show you

area for buying is a very
favorable area for buy orders

come back down retest that
demand zone then we have a move

when we get a demand zone that
forms just beneath the break of

this to sell it off okay so
that is the most basic area you

And then when the market pulls
back into that we can look at

that for future buyers. On the
flip side, if we are looking at

and we were in a downtrend what
we would actually see a lot of

is then a demand zone right so
it's an area where we

into some examples I need to
show you the other places that

okay, the buyers are still in
control because they've managed

are they going to lose it. When
they continue it and that shows

market the market takes off it
pulls back in to get to that

to push through the previous
high and the trend is

looking to see our sellers
going to continue control or

us that a lot of selling came
in at this level, we can then

here and we are looking for
price to come and trade into

bullish in the market. If the
buyers are in control, we can

these are just like the example
I showed you where we have a

where do supply and demand
zones form well the first base

the market's in a downtrend the
sellers are in control we're

it and this is also like that
where we have a supply zone

are following that battle
between buyers and sellers now

so support and resistance
becomes redundant when you

sellers are in control and when
we get the correction, we are

most of the time because the
market is going to follow

the market's in an uptrend the
buyers are in control and when

this and a resistance level is
where price bounces off to the

the time is price come into the
supply zone and then actually

volume and following the flow
of orders that are moving

supply zones, we are seeing the
exact same thing. We know

that once again as an area to
continue buying. So we can

up here, price bounces off it.
But this doesn't actually work

problem is there isn't much
logic behind it whereas supply

actually think where did the
buyers enter the market, okay?

reason this happens is because
support and resistance are

if we consider this demand zone
what this is showing us is an

continuing. Now that we know
the buyers in control, we can

correction is normally going to
form a demand zone and we

trades on and then we can take
the market higher. Now the

and demand zones have a lot of
logic behind them and they

the upside and if it continues
the trend, we can then see that

you see price bouncing from a
certain level a couple of times

area that buying control came
in in the previous episode we

following that concept by
actually seeing where are the

upside. So this is a support
and resistance area. The

essentially just lines that
you've drawn on the chart when

understand the concept of
supply and demand and the

programmed to follow support
and resistance. A support level

sell off from there instead of
from the support and resistance

supply and so let's say then we
had a supply zone above here

sell the market and profit from
a continuation down. So I'll

the structure and focus on that
for buyers. So we wait for a

show you some live examples but
before we do that I think we

then this is where we would
look to actually get our buy

understanding supply and demand
is really really important. So

structure can then lead us to
find the demand zone that broke

should talk about what supply
and demand shows and why it

bearish market. Supply zones
come in before lower lows and

can do is identify demand zones
because demand zones are

if we use what we spoke about
in the previous episode about

are accumulating. When we hit a
supply demand zone we normally

low and then we have a higher
high once again. This breaker

in a moment. We can identify
demand zones with the trend and

if we have an uptrending market
we have a higher high, a higher

higher high then we wait for a
pullback into a demand zone and

when they do we can look
towards those supply zones to

trading and it is going to be
where we get our entries and

we can use these to buy from.
So looking at this example then

refers to areas in the market
where buy orders or sell orders

bullish supply zones are
bearish. I'll talk about those

what actually is supply and
demand. Well supply and demand

market structure and consider
this as a bullish trend what we

also what we use for our
targets as well. So

get a fast reaction from that
zone in a given direction. So

demand is very important. It
plays a very big part in our

before we move on to the next.

So we've spoken about market
structure. The next thing to

cover is definitely going to be
supply and demand. Supply and