Original subtitles

give you very very high probability zones to build

confluences that we have, you know, looked at so far such as

trade ideas around So, over the course of the next few lessons,

moves after the inside bar forms so if it breaks out to

because this then means that they are likely to be a strong

types of fractal refinements inside bars where the candle

then engulfed by the next candle so this represents a

literally everywhere. You know almost all of them will give

represent a pullback on a lower time frame so within those

lead to increase accuracy giving us higher potential

range and we can see that here from left to right we look to

zone or bullish before the supply zone. Range and pivots

candles and you can also then what's called a fractal zone

structure the more significant the structure the zone breaks

zone that had a lot of money backing that area so the first

pivot created supply or demand and of course we don't trade

overwhelming imbalances between supply and demand and we can

then we wait for price to return to that zone and then

overpower and take out another strong valid zone causing that

combines both methods. So not only does it cause a break of

zone all else being equal. So let's just do a super quick

the second main way that we use to validate zones as doing

lows. Now all three zones boss, emboss and SBOS can of course

what can we do to try and validate which zones are

significant and therefore have that highest probability of

the three minor structure being less significant than swing

to price being able to break structure to the downside in

market that led to price being able to break structure to the

probability of you know supply and demand zones playing out

methods well again because we want to find the zones where

want to trade from but there are two core methods that we

that when price returns to it the probability of that big

personal opinion you should really only be looking to trade

on each individual trader you know on how they wish to trade

saying that list there are all confluences that increase the

would be you know I guess as low probability as you can make

it and it would be a lot more aggressive but the reason why

significant a level of structure that a zone manages

experience testing and you know constant reviewing so as I was

you know needs to be at a good premium or a good discount

theory you know really give you that higher probability but

now. But these are also some key components that can help

are actually interested in building solid trade ideas

requirement so what do I mean by that well if they were a

around okay? Now all of the are really great confluence that we

demand zones in discount prices and sell from supply zones in

premium prices to help in our strike rate and potential

so I wouldn't really advise it if you're starting out but

you know what is easiest and congruent with their own

is likely to reach before price may potentially pull back or

right side of the market and that will increase the

be professional traders and to determine and refine our edge.

right because we don't just want to enter a position and

looked at in depth so far is market structure. So hopefully

casino, you probably have better odds. But we are here to

to manage our expectations of how far the move from that zone

in our analysis to help us make sure that we are trading on the

not professional trading that's just gambling right If you

was created with you know not a lot of money behind it that is

circumstances where price will just smash straight through but

concepts such as liquidity sweeps and mitigations which we

exchanged between hands and of course there will be some

most likely just not going to be worth the risk of trading

what we can do to filter out a lot of these zones that are

on supply and demand zones these fractal refinements can

right? Now, every single supply and demand zone, it probably

look at it. So, now we've seen how supply and demand zones are

will form some degree of a reaction, right when price

balance between supply and demand is shifting constantly,

returns to that zone, you will almost see price at least pause

because of course, in reality, what the market deems to be

we do this is because that wick will contain a zone on a lower

and D zones are literally going to be everywhere, right?

buy to sell wicks and then on the lower time frame those

other strong zones to fail and we call these flips now when

but all of these four types can also be refined from just one

to see how well priced the zone is and then liquidity sweeps

level the second method is by looking at zones that cause

main ways in which we do you know actually validate a strong

achieve something something very significant in the market

will actually be likely to move. So we can use market

supply then we have sell to buy and buy to sell wicks which

be a very strict minimum requirement but there are two

range created zone on a lower time frame and we don't care if

from a specific zone so we want to find zones that actually

demand or we look to sell from supply. Now what determines if

course we build a portfolio of compliments and evidence for

be bullish before a demand zone if it's a continuation and it

wicks there will be a pivot or range created zone on the lower

some form of a reaction but not all unnecessarily one in which

the inside bar is bullish or it's irrelevant in terms of

each trade to increase the probability not only for the

we want to risk our capital on and take a trade from. So of

and we're going to combine them with all of the other

it's a reversal then price will be bearish before the demand

the wick this will be a range pivot created zone within that

pretty much stuff in wicks so if you refine your zone to just

then in turn the more significant that zone will be

want to see them but you know they do not necessarily have to

way to say this is by looking at zones that cause a break of

structure to help us with direction premium and discount

look for our potential entry models. So we look to buy from

you combine both flip zones and structure break zones this can

occurring in the market to consider validating and trading

wick on the lower time frame. Now supply demand zones are

its hand and see which direction it wants to go and

be tradable but it's the swing zones that are going to hold

broke out of a range and this can be in the form of range or

be very powerful and useful whereby you can read understand

structure but it also caused another zone to fail in the

use to validate a strong supply and demand zone that in my

those zones are continuation zones is which direction price

in this lesson. Supply and demand zones are caused by

something and achieving something very significant in

pivot zone that has multiple candles that will essentially

really we want to catch and position ourselves in. So,

zone so I personally want to see at least one of these

the upside it's demand or to the downside it is of course

the most weight and have the highest probability of leading

order to break that low and form a lower low so we should

does not break the high or low of the prior candle and it is

are your two main types of zones but a pivot created zone

and mitigations which we will cover at a later point so all

range can generally be cleaned up and refined to a you know a

crash course summary of everything that we have covered

to a boss. So we want to find whether demand came into the

supply and demand we are just looking for which way price

zone to hold but also how far that reaction from the zone

frame and then finally we have large wicks there's always

the initial breakout. We instead wait for price to show

price action on a higher time frame we then have three main

or demand to supply flips. So when you find a zone that

break of structure. So we want to see the zones that led

we are going to look at both of these two core methods in depth

single candle if you were to jump up and view that same

the market is if a zone actually manages to to

time frame which is visible as those wicks on the higher time

of these are you know pretty nice to have and we really do

to another large swing move and it's those swing runs that

structure swing minor and substructure so the more

because it takes more money to break its strong structure

reward to risk but potentially more missed trades if price

will be bearish before a supply zone if it's a continuation. If

swing structure. So the demand zones that cause those swing

be a pivot on a higher time frame so that lower time frame

zone to fail. So we call these flips so supply to demand flips

out of those three. So this means that the highest

what makes sense to them what they have the most success with

money stepping in again is a lot higher right because those

these two methods or ideally both of them together in order

going to be the strongest which zones are going to be

want to focus on and that we want to trade from so again

does not pull back that far so a range created zone or even a

behind the zone but the more refinement of the zone does

was travelling in before the zone was created. So price will

enter on or within the zone and our stop loss will always go

that's the first main way in which we can validate the

can also be just one candle. It doesn't have to be multiple

concentrating on the ones which caused a break of structure and

higher highs or supply zones that cause those swing lower

probability zones will be the ones that lead to the break of

they're just not hard and fast rules so that will all depend

identify and draw these on our charts by seeing where price

be so with swing structure being the most significant of

you know I don't say it's a minimum requirement that price

to break then the more significant that that zone will

countertrend is because you can do those things if you want to

want to find where the supply came into the market that led

protrend and in the discount right because that should in

process. Then this is when you had the highest probability

high as a strike rate and as high as a reward to risk ratio

strict minimum requirement then you would only ever buy from

significance of a supply or demand zone in the market by

first of those is that we want to find zones that caused a

significant in order to validate a strong zone. The

should be using to make sure that we are trading with as

structure and finally substructure being the weakest

it will be a more aggressive and might be lower probability

level that is actually well priced. So if we introduce

there are two main things that we look for that we deem as

that achieved something significant in the market. So

upside to break a high and form a higher high and likewise we

causing a strong move. Well the main idea is to find a zone

you know know by now that there are three different types of

there was a drastic imbalance between supply and demand so

reward to risk ratio. There are then some other very key

to position ourselves in. So market structure will help us

are the areas that we really want to concentrate on that we

market structure is a very important tool that we can use

new dimension to that by using multi time frame analysis to

view them a minimum requirement in my trade plan so I would

you should be very very familiar with this now. So

to trade from them so what I mean by that is I personally

effectively give us a bias on the direction of price whether

trading psychology which again will only come with time

from zones that are a minimum do at least one of either of

maybe a supply zone that was also countertrend because this

it is bullish bearish whether is a you know a pro-trend run

advise that you probably do also so what are these two core

strict minimum requirement to validate a zone that you may

reaction or at least causing a larger move. So one that we've

level or it has to be with protrend and you can't trade

with large and sustained moves but they are not necessarily a

So there are certain confluences that we can look

sell from a supply zone that was in the discount prices and

perhaps you would only buy from demand zones that were also

worry we will look at these in depth in future lessons. So you

that what that also means is then you know you would never

demand zones that were in the discount for example and

don't need to you know concern yourselves about these just

as possible and those confluences are really nice to

then looked at the concept of premium versus discount. So

have but you know they are not necessarily a strict minimum

haven't discussed yet and we haven't looked at yet. So don't

supply and demand to this we can then look to buy from

essentially helping us to see if we are looking to trade at a

demand because if there wasn't, the price will never move

us. You know to kind of pick and choose which zones that we

probability of the zones that we are looking to trade from

even reverse. So that's why market structure is king. We

causing the type large moves that you know we actually want

look at market structure across multiple time frames you know

single zone on, your chart's going to be an absolute mess,

or a countertrend pullback and of course bringing an entirely

So, if you hop on your chart and you start drawing every

to really build that story and that overall narrative so

created and how we draw them on candlestick charts. However, S

because you want to make your zone smaller to increase your

accuracy to increase your reward to risk ratio then you

we've seen how we can use market structure to very

for to increase the probability of the zones having a large

risk our hard-earned capital on just sort of any old zone that

or maybe even form a small bounce as those orders are

want to do that, you know, go chuck your money on red at the

wicks will represent either range created or pivot created

because it would just be at a fixed constant fair value

fair value is shifting every second of every day. So, the

confusing. Because supply and demand zones are literally

because there are constantly imbalances between supply and

seem to work that well and it's just going to be really really

everywhere in the market. Why are they everywhere? Well,

right? It's going to be a **** show and you're going to see

some zones play out and you're going to see a lot that don't

lower time frame without even having to you know go down and

and see that on one time frame actually what is happening on a

time frame so when we hop on the charts and we start drawing

can just simply draw the zone covering only the wick rather

than including the body of the candle too and the reason why

supply and then the file example we have here is when we

have large wicks so if you want to refine us further right

have two bearish candles for instance that then form those

strength of that zone and then all of that that we've just

visible on the higher time frames but when you can see for

in this case now lower time frame zones will not always be

hold a little bit more weight right because let's say that

lower time frame zone was an M15 zone for example on the 15

-minute time frame that is now also visible on the four hour

fractal refinement like that in theory that should increase the

example that M15 zone on the four hour via refractal via a

spoken about of course applies to supply zones so where you

theory all of the things being equal this could make that zone

that is really relevant is that those wicks those sell to buy

be a demand zone on the 15 minute time frame for example

then draw a zone from those two wigs as that will very likely

overall move between those is clearly bullish but there was a

price then goes up so that the second candle closes with a big

then the next candle opens up where the last candle body

wicks those those wicks represent a demand zone on a

that is also visible on a higher time frame then in

that body ends right so it closes a bullish candle but

lower time frame so if you can see a lower time frame zone

really matter you know if it's a range or a pivot zone all

or it could even like a range on the left so it doesn't

talking about let's say that they form on the four hour

where it would show a clear pivot demand zone so if you

imagine those two big bullish candles that we were just

and that could look like this pivot demand zone on the right

tiny pullback in between those two candles forming so what

it's still pulling back since that initial wick formed so

chart and then you see those sell to buy wicks you could

that may look like is something like this on a lower time frame

bullish body so essentially what just happened is that

closed but price continues to move down slightly right so

it leaves a little wick and then that candle closes where

are called sell to buy wicks and buy to sell wicks so if we

to kind of understand what may be happening on a lower time

supply of demand. It isn't whether a bullish or bearish

examples here just to make that point clear and it doesn't

must be range on a lower time frame and then price initiates

bar is. Now, an inside bar can be bearish or bullish. It

is a continuation demand zone so if we ask ourselves you know

look at the sell to buy wix example first at the top this

refinements in general if you just ask yourself you know how

direction and it paused it fell to break the higher low so it

you can see that candle pulls back ever so slightly because

how did these candles form well price was initially bullish

right it's moving to the upside in that first candle and then

frame so if the inside bar can see that price moved in one

out on the next candle now in the next example we have what

did those series of candles form that should help your mind

action by simply just understanding what an inside

frame range breaks out to the downside then that inside bar

out of that lower time frame range to the upside if so then

is a supply zone so whenever you are looking at fractal

that inside bar is a demand zone or if that lower time

range but we can see all of that lower time frame price

sellers as price then breaks out of that lower time frame

candle itself but actually what happens next does price break

So, what then determines whether that inside bar is

and then that means that it is a range on a lower time frame.

that it doesn't break the previous candles high or low

matter if the candle is bullish or bearish. All that matters is

why I deliberately drawn the candle as white in both

doesn't matter in terms of supply and demand. So, that's

and that's what the inside bar represents it represents a

means is that when the inside bar forms that will be a range

simply a candle that does not break the high or low of the

create our zone as there is an imbalance between buyers and

of that range with the following candle that will then

range on the lower time frame so when price then breaks out

candles high or low right so it's just ranging in between

inside the high and low of the previous candle so what that

on a lower time frame because it's not breaking the previous

the high or the low of the candle that formed before it so

that's why it's called an inside bar because it forms

examples of inside bars that the white candle does not break

previous candle so you can see in both examples both of these

actually view that lower time frame so the first example here

is what's called an inside bar zone so an inside bar is very

examples here are essentially ways in which we can draw zones

on our charts that represent pivot and range created zones

on a lower time frame without even having to go down and

see where they are on a higher time frame so these three

time frame candle so ranges of pivots are the two main ways in

lower time frame range will very likely just be one higher

created zone may be on a lower time frame and we can sometimes

can essentially anticipate and see where a pivot or range

order flow so if you see a range created zone as you then

which we look at supply and demand zones right however we

buyers and sellers but we then use candlestick charts and

know a few or even just one single candle right so that

go up the time frames that will then be refined to even you

different time frames to sort of make sense of all of that

that interaction of supply and demand that battle between

time because it's just orders going through the market right

riddle that time doesn't know price and price doesn't know

okay so this is what I meant you know that kind of silly

frame that will then just be made into one four hour candle

would have four candles if you jump up to the four hour time

mouthful but you can see that essentially on the 1 hour you

will see that that one hour range supply is actually a four

imagine how you think that would then look like on your

entries and refinements a lot more as we go along. For now I

within the market. So we have range creative supply and pivot

what aligns most with your trading personality and

bad with FOMO you know with fear of missing out and maybe

they would prefer to just enter more positions and they just

to do is they have to accept right that their average reward

probably going to miss more positions compared to the

improving your reward to risk ratio as much as possible but

still making sure you are entering enough positions now

increases the probability of you not being tagged into a

hour single candle pivot supply zone alright it's a bit of a

range then this means that we will be looking to enter our

position and you may miss more trades compared to not

don't want you to worry about this right now we will talk

behind the zone so in this case because it's supply we are

zone so going back to why we could potentially refine our

range zone to either the pivot the candle or the fractal

our zone that way why bother drawing a much bigger zone on

within the zone so you can enter higher up but again I

zones to place and size up our entries so essentially we will

start of the zone on the outer edge you know just like how the

right you can see that they are all the exact same price action

the entire range well to be fair that's a pretty good

the highest point of the range to the highest wick but then

largest amounts of orders are sitting within that supply

you know those large passive remaining orders that are

four one hour candles will make up one 4 hour candle right so

just those last two Buddhist candles where you get that

continuation supply zones and then this is how all four of

dependent upon which direction price was moving before the

four types can also be refined from just one range so if you

bottom of the zone from the lowest wick all the way up to

you to understand and all I want you to think about is just

there is drawing the supply zone from just a single candle

that further to just the fractal wick but all of these

short entries. So these and these pivot created zones.

and if price breaks out of a range or a pivot to the

sharp movement to the upside that is then rapidly reversed

So that demand zone essentially becomes a reversal. So

an overwhelming amount of demand steps into the market

point within that range when price gets there. So the more

classify it right as a reversal or a continuation. So again

be looking to always no matter what always place our stop loss

know supply and demand are always in the same direction

downside so we wait for price return to that range created

to risk ratio may be lower than the trader who chooses to

psychology because you know some traders may suffer quite

frames and how these different time frames will be interacting

essentially that continuous heartbeat of the market so the

of those major currency pairs by even just one pip so you

the downside and then demand stepped in into the market to

this lesson we are just always going to enter on the distal

continuation price will be bullish and moving upwards

different ways in which valid zones can be drawn okay? So

the range so if price breaks out of a range or pivot to the

different time frames so if we look at the range created

question because the reason why is that of course there are

next bearish down in price. It could literally happen at any

creation of a supply and demand zone that we really should be

refine that range supply to just the pivot supply of that

and that relationship between supply and demand is

supply we draw the zone from the bullish candles that than

that you refine a zone the more you increase your potential

just to quickly summarize we have two main types of zones

zero guarantees that prices going to pull all the way back

reward to risk tool is drawn here but you can enter anywhere

together you know as we go through and flick through those

refine zones just like this well it all has to do with our

of course there is no right or wrong balance this will be

of a good time to just start looking at and just

looks to return to that area so range created demand is when we

creative supply right? And we've been thinking about

cover the entire range so we draw from the lowest point to

broke out of that range and it's the exact same you know

causing a similar move as it mitigates a fills the remaining

see this range on the far left hand side of your screen you

whether a particular range you know aside from session timing

one hour candles that we have drawn the entire range on those

up that far to actually tag you in and enter you into your

wait for price to return to that pivot demand zone to look

range that will be enough to overpower demand to start the

orders to cause those imbalances. Now, we never need

you could you know refine that exact same range to just the

confirmation and refinement etcetera but for now all I want

so keep it easy we just wait for the market to show its hand

see and draw these on our charts well as you can see here

keeping our stop loss in the exact same position So this

just want you to really understand the the the

this is the 1 hour chart so we draw our supply zone on the

within that pivot and you can see that again this will

will see is pivot created zones. So in the case of pivot

short position slightly higher up at a better price but

and pivot are your essentially your two main types of zones

means that our stop loss will be slightly smaller compared to

is what really we are looking for because remember the whole

supply steps in causing price to fall to the downside this is

right so you know if I flick between kind of these

what I want you to start thinking about is multiple time

refinement but the trader who does refine and prefers that

ultimately what you find easiest on your own individual

entire range there on the 1 hour chart and I want you to

to that pivot created supply zone to potentially look for

know if we see price rapidly break out of a range then that

us that fractal refinement that will give us even higher

with these range and pivot zones but how do we actually

entries there once price gets there because the probability,

conceptually thinking about how we will use supply and demand

potential reward to risk. So that's great but you may now be

you know, it's not a certainty but the probability of price

so obviously the same thing goes for range created supply

refining. So now it's that delicate balance between

improves our reward to risk ratio. The next refinement from

wondering if the fractal refinement gives us the highest

a reversal against that bullish that previous bullish move

chart if you jumped up to the four hour chart well those four

financial institution has stepped in or of course you

trade entries really now we're going to talk about entries in

position because we don't know for certain you know where the

what we're going to do is we're going to look at a few more

higher reward to risk they then may have to accept that they're

examples of fractal refinements that we can use as valid zones

too much about this right now because we will talk about

entering on the entire range supply. So ultimately this

just a pivot of multiple candles but then what they have

things so far just in terms of one single time frame but now

overall demand zone to mitigate and fill any of those remaining

suggest low volume and that there hasn't been that you know

want to be in the trade so that they don't miss the move so

the zone so the lowest point that you would look to enter

accuracy giving you higher potential reward to risk but it

trader who doesn't refine right so it's that balance between

supply on the left hand side let's say for a second that

potentially getting less entries. But again don't worry

reward to risk ratio then why wouldn't we just always draw

they may actually prefer not refine that much and they will

kind of over refining to get the higher risk reward and then

range you can then take that pivot and refine this even

refining all of those supply zones to just the width to give

but what the term if those zones are continuation zones is

the zone so we would place our stop above the zone above the

from the range or does it just slowly move away from the range

about that a lot more in future lessons so for the purpose of

essentially you are refining the candle to just the wick as

improve the reward to risk of the trade and then finally

closing and moving into the Asian session where price tends

like on their own whether it can be a whole range of

fractal zones in a lot more depth in just a minute but

entirely dependent on each individual trader you know what

doesn't have to be multiple candles and you can also then

comes down to reward to risk because as you can see if we

seek more orders to fill that imbalance and in this whole

as you go across to the right so why would we bother to

engulfed by the bearish candle that breaks out to the downside

you can see that supply stepped into the market right in the

in the case of demand now if price was bearish and moving to

for a supply zone to be a continuation price will be

nice and mechanical now for where you decide to place your

downside this is caused by supply giving us a supply zone

all four of these types of zones would look like as

those types of zones would look like as you know reversal

over to overpower supply causing a bullish move this is

have what is called a fractal zone now we'll talk about these

highest points of that range so if it was demand then we would

refinement the reason why as you probably already guessed

pivot where you get that buy to sell that broke out of the

then a reversal against the previous bearish trend right?

further refinement can draw the supply zone from just the wick

the market deems that price is at fair value you know orders

place it below the zone right so that's pretty simple for

zone was created. So we how these four zones could look

within the range and then finally if you want even

expecting price to have a bearish move when price returns

but essentially you will look to enter anywhere on or within

demand eventually arises and it will eventually arise that is

price broke out to the downside. But what determines

example but you are just refining it further and further

upside this is caused by demand right giving us a demand zone

stop loss placement it always goes behind the zone which is

entry you have a little bit sort of more freedom and choice

supply zones. So it's always supply no matter what because

whether it's a continuation or reversal is again just

with an expansive move to the downside. Showing that demand

is simply a of that bearish trend. So for a zone to be then

to the upside before the range or pivot was formed then when

it's just what direction price was moving in previously before

classified as a reversal again it just solely depends on which

entire range okay so you can just see how going from left to

now whether a zone is a supply zone or a demand zone that will

of the range either to the upside or to the downside

always be categorised by which direction price breaks out of

multiple candles or just a sharp pivot where you have a

then when demand breaks out of that range to the downside it

second example so essentially you refine that whole range to

which is the edge of the zone okay so our stop always goes

few or just one candle and then finally when you can refine

further to just the last single candle of that pivot point

can draw your zone from the entire range right drawing the

the supply zone is at the distal point which is the very

direction price was moving before the zone was created. So

of that last Buddhist candle of that pivot point within that

behind the zone and our entry always goes on the edge of the

this will be a zone on a lower time frame. So this is how how

way more depth in future lessons but for now it is a bit

continuations and reversals you can just clearly see that you

either range created or pivot created supply and demand range

but a pivot created zone can also be just one candle so it

by the bullish candle that breaks out to the upside so we

pivot point of that range before price broke out where

the zone was created so for a demand zone to be a

whether it's supply or demand for pivot created demand we

These really are the footprints of institutional orders in the

draw the zone from the bearish candles that are then engulfed

order flow where many orders are changing hands and it's

or correction so it's from prices just moving sideways to

sustained direction and it's not breaking the swing high or

reaction out of the range because we never know for sure

essentially which direction price was travelling in before

has then overpowered supply causing that imbalance to the

now as we go on of course we will cover entries in a lot

therefore in the case of supply if price was bullish and moving

the highest point of the range before where price rapidly then

are essentially reading with candlesticks on our charts so

how they both look when we map these on our candlestick charts

bearish and moving downwards before the zone is created so

imbalances and therefore those huge moves for us to capsize on

buyers will be stepping in when price is in the discount half

more detail and how we use the lower time frames for

and we sometimes refer to this as the buy to sell so that's

before the zone is created so then when demand breaks out of

sometimes refer to this as the sell to buy for pivot created

patiently wait for price to return to that demand zone and

with candles if it is a created zone we just draw our zone to

supply is in control as price is moving down and is suddenly

the same but you know the opposite where we see a small

interest now the second type of demand and supply zone that you

for potential long entries. So then pivot supply is obviously

that range it is a continuation of that bullish trend right so

makes most sense to you what you have the most success with

always take you know the entire range for example or maybe even

always refine their zone to say just a candle or even a fractal

concentrating on the retest of that range as price eventually

if you jump up a time frame to the four hour time frame you

supply zone where then we look for potential entries to short

that price level where that huge demand initially you know

buy orders that may be left in that area of interest so then

we see price breaks out of the range to the downside clearly

create that demand zone that we are now interested in and we

overwhelm demand right because it causes that imbalance to the

how these zones are created and how they form in the market and

move that initial breakout of the range but instead we are

price moves out of a range and then sort of immediately

interested in so we are not looking to trade that initial

return to the zone in question and then we look for potential

that order flow and that's the language of the market that we

doing is they are visualizing the action of the order book so

interplay of all of those orders of that battle between

to create those supplier demand zones and then we await the

now we understand the concept of how these zones are created

and they're just you know facilitating those transactions

indicating that in this case and supply manage to completely

and tell us which way it wants to go and then what we do is we

stepped in previously so again we don't trade the initial

those zones were created that determines whether or not you

a very strong edge in the market for us to potentially

surf on the cocktails of that large institutional money

entering and exiting the market that causes those huge

sharp retrace to the upside. So what's happening here is that

we can look for another potential bullish move from

what they represent because remember all these zones are

look for where the big money stepped in to take control of

evidence of low volume so therefore would not be the

the next move from that area where there is a lot of supply

know another framework in order to read the order flow so again

which way you know price is going to break out of a range

them you know to facilitate those transactions you know for

layering orders in and out of the market you know whether

created demand you will see a sharp down move followed by a

sitting in the order book at that price level that gives us

really significant imbalance between supply and demand which

to guess. We literally just wait for the breakouts to occur

we can do is start to potentially frame a trade idea

job it is to provide equity to the market etcetera you know

market that shows us where they are stepping in with large

to the upside and then we look for a move back into that

then we start to look for our entry models within that zone

downside where we will then you know look for price to return

the market and we want to use that to understand where price

lesson on market mechanics and you think about the order flow

see that sideways range followed by a rapid expansion

at the market but when you actually take a step back and

retraces afterwards that can be not always but can be further

no way that a human brain can even begin to imagine just how

clearly showcase momentum being injected into the market so

see quite slow movement you know price sort of just

pretty much making up the majority of that order flow you

game we're kind of playing here with supply and demand is to

orders at a fair value of price. So this is what you will

a movement away from a range should be significant to

so range on a price chart is just a sideways consolidation

trickles out away from the range then that would typically

around this when we see that occur in the market but if you

causing price to then rapidly reverse to the upside and that

trying to get your head around but it's actually quite simple

gives us our first clue of you know a footprint that a large

combine them with everything that we know so far about

range is created right so we don't have to guess we just

bring the it back to an equilibrium of fair value

of the market of how order flow so the interaction between

hands and that was likely institutional backing because

it takes a hell of a lot of money you know just to move any

environments can obviously be a little bit confusing. So one

where volume is typically lower than you know comparison to

and low volume are going to be very very different in nature

how can we tell of a particular range is caused by high or low

guess one of the obvious ways in which you can just assume

kind of common time which you'll see a range is sort of

wait and then we ask ourselves does price rapidly move away

to range and consolidate because it tends to be kind of

other end of kind of what can form ranges I guess the other

be able to cause price to break out of that range and then what

is likely to move to and move from because that gives us you

towards the end of the New York session as the session is

low market volume during those times and that generally you

cycle that we just described the whole cycle of order flow

overwhelming imbalance between supply and demand right to to

know many of them and that is what has caused that

high volume which implies that a lot of orders have exchanged

why because it's trying to seek more orders right price needs

because rapid movement away from the range that suggests

that if you see a range right it's during Asia that it's

compared to those sessions. So kind of session timing is I

form another range right until the next imbalance then arises

dealing with is by just waiting to see what happens after the

typically because of low volume. But how can we tell

volume order flow if ranges are created by both of them. Well

between buyers and sellers which is where price will then

to seek more liquidity in order to fill that imbalance and

know goes the same for the whole of the Asian session

the easiest way determine you know which environment you are

end of the spectrum is low volume now now you know high

often hear traders refer to as an accumulation or a

and the fact that ranges are created by both of those

London and New York. So Asia tends to be quite range bound

which will then cause price to break out of that range to then

when you will then see price move rapidly in one direction

then eventually when that imbalance between supply and

distribution of orders. Which basically just means that

depending on which of the market is in control so when

jumping up a time frame it can then show you more clearly that

about all of it but what we can do is we can make sense of you

the right of the chart you know it's not really move in any

swing points and the trend is pretty much you know paused so

can be exchanging at quite a rapid pace and this is where

of the range and sellers are stepping in when price is in

found across all time frames and this is where sometimes

doing this is really by understanding what a range is

you won't really see much movement on a price chart but

very likely that you know large players are beginning to stack

demand and supply are exchanging quite rapidly but

eventually you do say large expansive move that breaks out

closures they just putting their orders through the market

generally indicate one of two things. One being high volume

a bit too zoomed in on a lower time frame. Now ranges

the swing low so it's just ranging in between two of those

do that with candlestick price charts so the first step to

supply and demand between buyers and sellers and we can

know all of that kind of complicated interaction and the

the premium half of the range now ranges can obviously be

so a lot of those big dealing desktop banks they're just

have pretty much complicated algorithms that continuously

there's a lot going on we don't need to understand and talk

price is actually stuck in a range you know sometimes you're

much money that actually is you know big institutions who are

actually draw and identify these areas of supply and

market you know is trading it in a reasonably similar fashion

in reality so as retail traders you know we can get quite

through the market every single day there's literally you know

various and endless amounts of different reasons you then also

with a chart and analyzing waiting for those candle

to the way that we kind of think about and you know look

kind of silly little riddle that you know you might be

that's for pure speculative strategies you know from the

as high probability trading opportunities when we then

actually leads the price action that we then see on our charts,

market structure now time doesn't know price and price

working through commercial volume that comes through to

right? So now, what we're going to do is look at how we

looking at candlestick charts all day and we can be forgiven

in the market right the $7 trillion dollars that go

buyers and sellers, that battle of supply and demand is what

you think about what we just discussed in the previous

for thinking that everyone who participates in the Forex

doesn't know time I know at first that sounds like some

quantitative side or even from you know market makers whose

know they're not necessarily sitting there you know trading

caught up in our world of technical analysis and you know

demand in the market on our charts and how we can use them

In the previous lesson, we looked at the actual mechanics

market structure and premium and discount.