How To Find Supply And Demand Zones That Work
How To Find Supply And Demand Zones That Work is a book I’ve written to help traders become more successful trading supply and demand zones. I think a lot of the education out there on supply and demand trading is fundamentally flawed with how the market and the traders within actually operate.
The vast majority of supply and demand traders believe supply and demand zones which formed a long time ago have a higher probability of working out successfully than zones which have formed recently. The reason they believe this, is because the supply and demand guru’s and teachers have taught them the longer the market has been away from a supply or demand zone, the higher the probability that zone has of causing the market to reverse upon its return.
In my book you’ll see just how wrong this belief is and why it’s probably the main cause behind you losing money trading supply and demand zones. I’ll explain how it makes absolutely no sense for the banks to wait weeks and weeks for the market to come back to a supply or demand zone just so they can get one of their unfilled trades placed, and you’ll see why trading zones which have formed recently not only makes more sense, but is also likely to give you more winning trades.
I’ve left a small summary of the main points discussed in the book below
Understand The Two Actions Which Cause Supply And Demand Zones To Form In The Market
Most traders mistakenly assume all supply and demand zones are created by the bank traders placing trades. Whilst a very high percentage of zones have been created by the banks placing trades, a lot of zones have actually formed due to the bank traders taking some profits off their trades. Knowing whether a supply or demand zone has formed because of trade placing or profit taking is important because it gives you some indication of what to expect when the market returns to the zone.
For example, if you knew a supply zone had formed due to the bank traders taking profits off their trades, you would know that it’s probably not a good idea to place a trade at the zone because of the fact it’s likely for the market to break through the zone soon after it returns to it. Conversely if you knew a supply or demand zone had formed because the bank traders had placed trades into the market, you would know the zone has a high probability of causing the market to reverse upon its return as the banks might want to get more of their trades placed.
In the book I’ll show you the differences between the zones created by the banks taking profits off their trades and the zones created by them placing trades. I’ll also show you where these two types of zone are likely to form in the market so you can easily identify them on your charts.
Learn Why Old Supply And Demand Zones Don’t Cause The Market To Reverse And The Reason Why Traders Think They Do
The main reason why traders believe old supply and demand zones cause the market to reverse is because they see the market return to some of the zones that formed a long time ago and then reverse in the direction anticipated. They think the reason the market has reversed is because it’s encountered a supply or demand zone, what they don’t realize is the zone doesn’t have anything to do with the reason why the market is reversing, it’s just happens to be chance the old zone falls in-line with the point where the bank traders have decided to make one of their trading decisions which has caused the market to reverse.
Understanding Swing Highs And Swing Lows
Understanding Swing Highs And Swing Lows is a book which seeks to give traders a better understanding of how to determine which direction the market is trending in. I think the majority of forex traders determine the trend using the Dow Theory i.e if a market makes a higher high followed by a higher low the trend is said to be up, if it makes a lower low followed by a lower high it’s said to be down. Whilst for the most part this is very good method, it does have some flaws in it which can completely mess up your analysis of the market and cause you to lose money.
For example, the Dow Theory states that if the market makes a higher high followed by a higher low during a downtrend it signals a reversal back to the upside. What you will have probably noticed, is that a lot of the time this isn’t the case, and instead of reversing once the higher high and higher low has been made, the market simply just continues moving in the direction of the downtrend.
At no point does any of the education on the Dow Theory give an explanation as to why this frequently occurs, despite the fact it has the potential to cause traders to suffer huge losses.
What you learn from my book, is the reason the market tends to make a higher high/lower low and not reverse, is because the bank traders are getting more of their trades placed in the direction of the current trend. I’ll show you exactly how to determine when a new higher high or lower low signals a trend reversal and when it signals a continuation, so you can stop making critical mistakes in your analysis of the trend.
Understand What Causes Swing Highs And Lows To Form In The Market
Another really important thing which the books on the Dow Theory never seem to speak about, is what causes swing lows and swing highs to actually form in the market. I’ve always said that knowing why something has occurred is far more important than just seeing it occur. Anybody can look at a chart and see that a swing low has formed, but most won’t be able to tell you the reason why that low has formed in the market. If you know why a swing low or high has formed, you’ll have a much greater understanding of what you’re seeing take place in the market.
For example, if you knew a swing high formed because the bank traders had placed sell trades, you would know to keep an eye on the point around the swing high because if the market returns to it at a later date, the banks may want to get more sell trades placed. Also, if you knew a swing high had been created by the banks placing a large number of their sell trades, you would know if the market breaks through the high, there’s a high probability the current trend could be changing, due to fact the banks wouldn’t place a large number of their trades if they knew the market was going to reverse a short time later.
Learn How To Determine Which Swing Lows And Swing Highs Are More Important Than Others
Knowing how to determine which swing highs and swing lows are more important than others is crucial for understanding what’s going on in the market. If you don’t know which swings are more important than others, you’re not going to know when the market has broken through a significant swing high or low, which means you’re probably going to be late on picking up on any trend changes that might be taking place in the market.
The method you’ll be using to determine which swings are more important than others, is based on understanding how many orders were coming into the market at the time of the swings formation. Buy and sell orders are like the currency of the forex market, nobody can do anything unless they have the necessary amount of orders available. The higher the number of orders coming into the market, the bigger the size of the trades the bank traders are able to place and the larger the amount of profits they are able to take off their trades. Because each swing forms due to the bank traders either taking profits or placing trades, it means knowing how many orders were coming into the market at the time of the swings formation, will allow you to make an estimation as to how big the size of the trades the bank traders placed were, and how much profit they might have be able to take off their trades.
This in turn will give you some idea of how important the swing low or high is in the market, because if you know the banks have placed a larger number of their trades onto one swing than they have onto another, you know it’s less likely for the market to beak through that swing due to the fact the banks have a got a large number of their trades placed there
Supply And Demand Zones + Support And Resistance Levels For All Four Major Currencies Sent To You Each Day
In addition to the books you’ll receive for signing up, you’ll also get the support and resistance levels and supply and demand zones for all four major currencies sent to your inbox each day via email. You can expect to find the email in your inbox before 6:00pm GMT. The zones and levels I’ll send you will be for the 1 hour chart and daily chart of each of the four respective major currencies, I’ve listed them below just in case there’s anyone who doesn’t know what they are.
USD/JPY – GBP/USD – EUR/USD – AUD/USD.
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