Original subtitles

Welcome traders to supply demand. Or do you call them

auto blocks sponsored candles. I do not care guys. It is the

same concept. We are going to call them supply demand in our

there is a fix community but I will not judge you if you will

write down order blocks or any other names. Important for us

is the concept behind this name. Now let's get it started.

We will start with the supply zone. Now a supply zone is a

thing which we would like to determine within a downtrend so

when price is moving to the downside you will see price

breaking structure to the downside this is how it will be

confirmed now what you will see at the creation of a lower high

so we got this one here this is our lower high we got a lower

low which will be broken by the movement at the lower high. So

what am I talking? Well basically what you will always

see after a break of structure if you analyse who was

responsible for that break of structure you will see a candle

which is moving to the upside and afterwards we will see a

strong candle to the downside and this strong candle will

break the previous low low. In addition the market will create

a gap. Now we'll say what gap am I talking about? Well I talk

so I mean the gap here. Let me just mark the next candle so

that it will make it more clearly to you. Use it here red

as well. So you see here the next candle which is created

here. So this is how the down movement works. Price is moving

to the downside. And you will see that there is a gap between

this wig over here. And this wick over here. So I call this

a gap. Another word for it is market inefficiency. Market

inefficiency sounds for me a much better name. Gap is easier

for us to understand because price has created here at Gap.

So these two weeks are not meeting with each other. And

what does that tell us? So this is super important. This gap

tells us that the sellers and buyers didn't have a fair fair

chance to come together so that means that the price dropped

way too strongly to the downside that not everybody had

the chance to jump on this trade okay so the you need to

understand the big institutions okay they know exactly what

they're doing over here and they are trying always to get

the maximum out of it and whenever there is a gap like

this or market inefficiency we know exactly that they are

highly interested in bringing the price very soon to the

upside in order to fill that gap and in order to get a fair

chance to get involved into this trade okay now sounds a

little bit complicated on the first few but it's not because

what we need to understand is that this buy candle over here

this bullish candle over here was created from the same

institution who brought the price at the same time that

strongly to the downside now that means that this

institution at this point over here so when a market price is

at this era over here

put this price level so if when the price is here this this

institution is and positive okay if you sum everything up

institution will be positive but they have at the same time

a negative position which one exactly the buying position I

would say why does this institution still have the

buying position open well actually they have this buying

position still opened and at the same time the bearish

positions as well so they are buying and selling at the same

time the reason for that is because they don't want to take

losses. So they do not trade like we are trading. The way on

how we retail traders are trading is the complete

different approach. We need to use stop losers. A big

institutions big institutions do not use stop loses because

they can hold this whole drawdown, okay? So they have

massive draw down on that position but for them that's

not relevant because they're on the same time they have big

short positions right so they are in profit but what they're

about to do to do is actually they broke structure to

signalize the to the other institutions hey guys this

market is right now dropping because I'm shorting it so I

want to see the price dropping to the downside they took the

chance from the other institutions to get involved

into the short position why because price dropped way too

much to the downside this is what the institutions can see

when they're just looking at the charts they see oh okay so

they would like to join this trend as well because otherwise

they could have bring the price like that to the upside and

this is not the idea of on how the institutions are community

communicating with each others no they see okay that one

institutions broke structure he would like to bring the price

to the downside he left this gap for us so that we know okay

price will come very soon to the upside and we can get

involved into the trade as well the thing is right now this is

why they do not close their buying position because they

know they will bring the price to the upside so they will have

the chance at this supply zone so we will call them supply

zone they will close exactly over here so not sure where

exactly not sure if it will be exactly at the open price okay

probably here or here or at the middle or even at the top okay

so no matter what kind of level over here they are going to

close it of course the higher the close will be the better

for them because probably probably they will even bank

profit out of this position depending on way where they've

been buying it because if you look this movement on the lower

time frame it will look something like this okay it

will be an uptrend okay to signalize the retail traders

that the market will potentially go like this but in

fact it it did it just generated liquidity here below

it which they have been attacking with this strong sell

to the downside okay and now we don't know exactly if you look

on this trend where they exactly bought the price if

they bought here or if they bought here and here and here

and then they will close it here it's not clear because

when a price will reverse right now back here at some point

they will close it and at that point when they are going to

close it they will be adding additionally shorts plus our

institutions will join this market as well and they will

bring it up towards even lower to the downside. So this is

actually the theory behind the supply and demand and this

works right now for the demand zone the same way like it works

for the supply zone. So this is the real meaning of this gap.

So it it is called also fear value gap. No sure about it I

just call it here in this case for me this is an imbalance

okay this is an imbalance so the balance the balance between

prices is not given it is an inefficiency in price and it's

in gap at the same time so you have right now a ton of words

for that that will explain you this kind of concept and the

price will more than likely go after a broke structure it's

super important that we broke structure because this is like

I explained to you already this is how they communicate okay

price will definitely go lower and our target will be then at

least this zone over here and probably we will go in lower

breaking structure again and we will repeat this game again and

again so the idea is when a price will come here that you

can go here put your stop loose a little bit above okay always

put it a little bit above it you can also put your entry a

little bit below okay because price sometimes will not

completely touch it okay it will depend on how the

institutions will act because sometimes they have so much

pressure within the market that they will just bring it from

here all the way to the downset so they have already too much

liquidity within the market that they are not interested in

bringing a price that much and then you put your target

exactly over here that's basically it that's one option

okay to put it like this that's your first option second option

is to put it exactly at the middle of it okay with putting

it on the middle this is just a mathematical thing you will

more than likely expect the price to tap into this zone

over here or into this zone over there right and this is

our approach will be okay you could put your price here or

here or risk half of your risk here and half of your risk here

and you will get in if you sum it up you will have a better

risk reward okay sometimes it's just better to just put it like

this because if you will see okay price more than likely

will tap higher into that zone then put it like this if you

have the feeling for it okay no price will not tap that much to

it because price is so strong in a downtrend I do not expect

that price will go much to the upside then you will put it

over here but for us it's this is not always important because

we will get very great risk rewards also if we will put it

over here I will depend on the time frame that you will use it

because you can refine these zones on the lower time frame

so let me just explain to you over here so demands on the

same thing I always recommend you to put really take profit

at the next structural point because this is here then your

new bearish range from a structural point so you expect

the price to come up higher and the supply zone will then

actually confirm your trade and put it here because from that

zone price could potentially now break it and it will from

your reverse completely to the upside so you will miss out on

many trades if you will not close it exactly at the

structural point what you can also do is to put it a little

bit below because there is again liquidity located and the

price could then reverse okay that's also another important

thing Additionally right now let's go into the theory of the

refinement so like I explained to you already price here more

than likely will look like it is downtrend so price comes

from the downside right and then when it comes here it will

move something like this to the downside and then at some point

it will go oh sorry it has different options on how the

the liquidity here is liquid generated more in the

liquidities point liquidity section because it could be a

range and then price will short it down okay and then this

candle will be created and then from here it will move like

this to the upside and your refinement in this case will be

to not use this whole candle okay because if you will look

on this move here, you will see price is moving like this.

And then moving up higher and then this thing over here will

be your refinement candle instead of using this whole

thing. So hopefully that makes right now sense. Let me just

repeat it once again for you.

Out. We got demand zone. Price has like explained to you

multiply options on how it can look like more than likely it

will be a short candle probably it will be here again something

like a bullish structure and then price will move lower and

this movement to the downside this whole range will be this

zone here and it will look like this okay this movement can

look like this

can look like this and then the strong push up will will work

out and we would have been mapping then on the on the one

hour time frame for example or on the four hour time frame we

will map out this whole thing to be to be the demand zone but

we can refine it to the last movement to the downside okay

so you should always understand that the theory about a supply

and a demand is so on a demand zone last down movement candle

before the strong up movement occurs on and on the supplies

on the last up move candle before the supply before the

strong movement to the downset will occur okay that's the

exact rules of it and what you would like to see is that the

price will definitely break some structure because if it

will not break structure then it will just push the price

till that structural arrange okay and if it will put only

till the arrange then you can still expect the opposite

direction to occur and and the most of the times it will do it

like that because this is how they trigger the people by

breaking minor structure previously before the real

movement will occur. Okay hopefully that makes sense for

you so this is just a theory right now behind the supply

demand and look at this guys this is how you can then refine

it because then you will put your demand here you put your

demand in here and it will make your demands on automatically

much much better so your risk reward will be increased in

insane so it is an insane increase in risk reward in

comparison it's right now to the other ones okay so normally

you would have been using right now this whole range over here

okay so three that's a 7. 6 and you don't need to use that

mathematical thing so you look you look for logical things

right because you know okay in the lower time frames you have

it anyways right you have any ways your confirmation fight.

So let's see in the next video guys.