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How To Find Supply and Demand Zones | How To Trade Supply & Demand Zones Easily - YouTube
Channel: StarseedFX
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Hi, this is Anne. In this video, I'm going to share聽with you how to trade supply and demand. For those
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who have been a member of starseedfx you guys know聽that I focus on trading the order block strategy.
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But quite a few people have asked me questions聽whether the order block is the same, like supply聽聽
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and demand, if there is a difference what is the聽difference? To me they are almost the same just
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slightly different. So before I show you how聽
to trade supply and demand, let me show you聽聽
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how I trade the order block and then you will see聽how closely related they are to each other. So it's聽聽
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up to you whichever you want to trade as long聽as it gives you profits why not? So here is how
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I trade the order block. The first thing I want to do聽is that I want to see a clear break of structure
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from a swing high, swing low. This is an example聽of a clear break of structure and here is a swing聽聽
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high and this is a swing low. This is the break of聽structure. If the price breaks below, my order block聽聽
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is the last bullish candle before the breakout聽happens. That is how I pick the order block, for聽聽
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sell order block. So this is a sell order block聽
meaning when the price come back to this zone聽聽
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I'm looking for sell. Now how about buy? I am also聽looking for a clear break of structure. For example,聽聽
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this one, this is a clear break of structure of a聽swing high, swing low. This is a swing high. This is
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a swing low and here is the break of structure and聽the price breaks above. If the price breaks above,
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my order block is the last bearish candle before聽the breakout happens. Over here, in this case,
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because this is already happened and the price聽respect the order block, this is a buy order block
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and continue its way. So when the price comes back聽here, I'm looking for buy around this area. So
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basically, that's how the order block works. If聽the price breaks below, my order block is the last
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bullish candle. If the price breaks above, my order聽block is the last bearish candle. So now let's see
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how closely related are order block and聽
supply and demand. Let's go back to the power point.
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So here's how to find supply and demand zone. First step is the same like the order block.
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There must be a break of structure. It breaks聽the high, this high or it breaks the low,
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this low. Like here is an example in the real聽
market. There is a break of structure to the聽聽
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upside and this is the break of structure to the聽downside. I want to tell you something here. When it聽聽
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comes to break of structure, you have two options:聽whether you want it with the body or with the wick.
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It's up to you. Some people always want it with聽the body. Some people can accept with the wick.
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I can accept both whichever that looks clear聽to me. Because let's say this is on a daily chart.
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This wick when you take it to the聽
lower time frame, let's say M15.
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You probably will see a body around this wick area. So it doesn't matter whichever you choose, that you聽聽
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feel comfortable with for the break of structure. But you want to find a clear break of structure
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before you mark your supply and demand. So that is聽the first step. Now the second step, there must be
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a gap also known as imbalance or fair value聽gap, or fvg, or inefficiency or whatever maybe聽聽
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a hole, a crack, a cut. But to me it's just a gap. This gap is usually coming from the three candles.
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To put it simply I put one, two, three to the聽upside or one, two, three, to the downside. If this
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one is break above, this one is break below it's聽just the same. What you have to do to find the gap聽is to
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look for the three candles and you slash聽
number two, like imagine candle number two is gone.
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So you can see there is a gap between number one聽and number three. If there is the gap, then it will
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be qualified to become a supply or demand zone. So you know that the break of structure usually
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happen on number two. Now, let's go to step three.聽The last candle that created a gap after break聽聽
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of structure, that is your SUPPLY AND DEMAND zone.聽So here is an example of demand zone. There is the
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break of structure here, candle number two and you聽just slash it. Imagine it is gone. So you聽聽
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will see between number one and number three there聽is a gap right? So that makes number one your
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demand zone. You see, the difference with the order聽block is that whenever there is a break above, your
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order block is the last bearish candle before the聽breakout happened. And I often say that whenever
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there is a wick, I also always include the wick聽in my order block right. So it's almost the same.
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The zone is the same. It's just the way it's done for the demand zone. So always remember,
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once there is the break of structure, just slash聽number two see if there is the gap. If there is
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no gap, for example, let's say like this: So let me聽put this below. Let's say number two is like this
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So there is no gap. So you want to see the next聽candle maybe from this two, one, zero, just keep聽聽
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looking after the break of structure where is聽
the first gap. Because the supply or demand is
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the last candle that created a gap. Let's say for聽example, here for supply zone this is the break聽聽
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of structure. It happened on number two then you slash聽number two. If there is the gap, so number one is
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the gap. This is your supply zone. This one聽
fortunately is the same like the order block right. If聽聽
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it breaks below, your order block is the last bullish聽candle before the breakout happened. So sometimes
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they have the same zone like supply or demand.聽So it's really up to you. If supply demand is
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order block sometimes or sometimes it's not.聽But that is how you find supply and demand
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zone. You want to see a break of structure and聽then you want to imagine one, two, three candle,
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slash number two, look if there is the gap between聽one and three. If there is no gap, slice number
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one, see if there is the gap. Just continue聽
doing that. The last candle that created a gap,
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that is your supply and demand zone. Alright next, how to trade supply and demand zone. It is almost聽聽
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the same, like you trade the order block. Step one,聽you want to go to daily or H4 to determine market
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direction. In this case, if you are a member of starseedfx, you will receive the order block from us,
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starting from H4, D1 and weekly. So once you get the聽order block from us, if you receive buy order block,聽聽
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you know that the market on the lower time frame聽has a probability to go higher. But if you want
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to do it on your own for trading supply and demand聽zone or order block ,it is the same. Go to daily or H4聽聽
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to determine market direction and then go to M15. Mark M15 supply or demand zone. If you want to go
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lower, you can go to M5 or M1 to refine supply and聽demand zone. And in step four, you execute the trade聽聽
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using a CHOCH or one, two, three pattern reversal聽or a continuation. If you are new with the word,
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CHOCH or one, two, three, pattern reversal you can聽go to my youtube channel here. There is a list,
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the order block trading strategy. Here is part 12.聽Let's trade as simple as one, two, three. This is the聽聽
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video that will teach you all about CHOCH and聽also one, two, three pattern. This is how you want
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to execute your trade. So you can watch that video.聽Now step five, your take profit target is the last
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gap, unmitigated supply and demand zone. It's聽exactly the same like how you trade the order
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block. If you have a buy order block, you can go to聽a lower time frame. Let me give you a real example.
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Last friday, I traded this pair GJ. So we all got聽the alert from starseed here written yen over聽聽
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here. I traded this pair. I also traded this swiss franc. I didn't trade this but I just聽聽
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trade GJ and here represents three. I lost聽
this one, but this one I made 1 to 15 from two聽
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trades. Now, let me show it to you. Here is the buy聽order block right. This is the break of structure.
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And the order block is the last bearish candle. If聽it is a supply and demand, use slash number two. So聽聽
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here is a gap. This is your supply but because聽we are trading the order block, so here is our order
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block. Even though that we are not focusing on the聽imbalance, when we are trading the order block but聽聽
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as you can see almost every of our alert there is聽always the gap. So it qualifies also for you if you聽
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want to trade the supply and demand you can聽also see it. There is imbalance. There is the gap
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in almost every of our order block. Let's take a聽look again unless it is a continuation. This is a
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continuation. So let's take a look at this one. You聽see that, this is order block. There is the gap,
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slash, this is basically our supply. And here聽
again there is the gap. So even though I do聽聽
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not focus on the imbalance but most of our alerts聽usually have imbalance. You just can take it. So聽聽
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anyway, let's redraw this. So let's go back here. Now,聽go to daily or H4 to determine market direction,
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which if you are a member of starseedfx you don't聽have to do that. You just wait for the alert from
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us there. When you receive the alert, you just go聽directly to M15. Now you can refine to a lower time聽
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frame and mark all your supply or demand zone. In聽this case, let's go back here. So here is the first
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break above, the clear one. But basically you聽can choose this as the first break of structure.
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This is break below based on the one two three聽pattern. I highly recommend you to take a look at
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the video about one two three pattern. So you聽can get early reversal pattern if you will.聽
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So here is the break below, this is break聽
above. So basically this is my order block.聽
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And it is not clear because there聽are only two candles here for supply and聽聽
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demand. So you will basically highlight the聽
wick as your demand. And then let's go to M15.
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I'm sorry, I mean M5 so you can refine all聽
these, like if this is the break of structure,
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so where is your supply and demand? Here, slash this聽one and make this one become your supply. It didn't聽聽
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work. Then you want to see another one because聽sometimes in one leg you can find several supply
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if there are several gaps. So here between this聽one, there is no gap but as for the order block聽聽
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this is the last bearish candle. So what I did is聽just to put it at fifty percent. It hit and my take
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profit target was the last high and here I took 1 to 10. This is the reversal pattern from here聽聽
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based on a CHOCH, one-two-three pattern reversal.聽Again, you want to check this video part 12.
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Let's trade simple as 123. You will learn how to聽trade the reversal from there. It is a simple quick video.
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So this is a reversal pattern based on聽
one-two-three. While in a continuation, all you have to
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do is just continue because the market is a buy. So you only want to buy. You can keep looking for
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break above. Let's see what does the continuation look like here. So this was my entry over here,
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last Friday, I took it at fifty percent. I take聽
it 1 to 10 and the second one I was scaling聽聽
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based on this one, this break of structure. Over here from this candle聽聽
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to this candle this is the break of structure.聽
And my order block is the last bearish candle
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before the breakout happened. If you want a trade聽supply and demand, this is your demand also. It's the same聽聽
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like order block there. Because this is聽
the break of structure and this is one-two-
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three candle, slash number two, you see there is the聽gap. So this is your demand which also the same as
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my order block. So this was my entry and for some聽reason for this, I took only 1 to 5 because
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I thought the price will come back here to take聽this one or this one. So I just took 1 to 5.
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But it didn't and I need to continue and hit my first聽trade 1 to 10 and then this finish with 1 to聽聽
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5 and that's it, I got 1 to 15. So that聽
is how you trade supply and demand zone. It is up
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to you. If we go back here again, sometimes supply聽depends on choosing the same candle exactly as
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the order block. Sometimes it is not. But basically,聽they are closely related and they're zoned almost
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around the same as the order block. So it's really聽up to you how you want to choose supply demand
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zone or combine both. I personally trade based聽on the order block. But there is nothing wrong for
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you to understand that this is a demand zone and聽this is a supply. And whichever you want to choose.
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Now for those of you who have known me for quite聽some times, you guys know that I like to trade
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simple right? Just like I show it to you, I just聽
wait for the order block from H4 and then trade
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it on M15. It can be good. It can be bad. It can聽be a losing one. It can be a winning one like this.聽聽
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But usually, it gives you at least 1 to 5 or聽
1 to 10 just by following like what I'm doing
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here by receiving the alert from starseedfx聽
here. But I gotta tell you, there are actually other聽聽
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methods which is for order block or supply and demand聽which is more complex. Like this one to me, this is
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complex maybe for some people it's not. But for聽me personally, this is complex. But it's working.
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So I call it a king pattern kind of...if you聽
want to trade more complex pattern especially if聽聽
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you are a scalper you want to learn this pattern.聽Because it works so well for聽聽
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the scalper. So if you want to learn more about聽this, I would highly suggest you to learn with
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Kyle. Kyle is sharing hundreds of hours of videos聽over here to teach you about supply and demand聽
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more thoroughly. Also there is Marcus' teaching here.聽You can also get one-on-one training with them
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if you want to go more in-depth. Kyle can make 5聽to 10 percent easily a day. You can get one-on-one
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training with him. It's very affordable for members.聽Even though I do not trade this, I understand it's
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really good. I just don't really trade it because I聽like to trade simple like I just showed you.
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I just see 1-2-3 pattern and take it on聽
50 percent. It has been working for me like this. But some聽聽
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people like to trade in more advanced way which聽is good. But maybe some of you also want to trade
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just simply like me, like this. That's also good.聽Because I've proven to be able to work as a full-time
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trader just by trading like this on M5 and聽
M15 or above. I just don't trade on M1 for now
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because it's still too fast for me. But I聽
just trade starting from M5 or M15 this way.聽
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So as for now, let me give you a quick overview聽how this complex trainings looks like. In case
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you want to learn more, you can learn with kyle.聽But this is basically how it works.
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So here's how it works. There should be a聽
break of structure and then it creates a demand.
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And then there is inducement meaning a fake聽move before the real move happens. This is the real
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move after coming back to a demand, filling the聽gap, because after the break of structure there聽聽
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must be the gap here. And then it created demand so聽this is the real move. But a good pattern or a good
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trading for this pattern is that there must be聽
inducement taken by the price which is this price.
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And preferably, there is also liquidity being taken. Some people use as dollar sign. Kyle put it as聽
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x the liquidity taken. i will just put it as x-men. So basically, this is equal high, equal low and
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then taken by the price that is liquidity grab.聽
Liquidity is where the retail trader place聽聽
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their stop loss then it's taken by the smart money聽by the banks. You think I'm joking with this king
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pattern. Here you go. Seriously, it happens so聽many times. There is the break of structure
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and then there is inducement. Here is the liquidity聽grab or the x-men and then coming back here, it hit聽聽
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the king demand and after sometimes it hit the聽queen supply. So if you want to trade it this way,
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you can learn. But what I usually do is just trade聽simple like i just showed you. I just wait for
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the alert and then go to M15 and then wait for the聽pattern. If you dig deeper, this pattern actually
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could give king pattern like this. You just have聽to learn to find out more detail but I just聽聽
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like to trade it easy. There is break below, break聽above and then this is my order block. Put 50 percent. If聽聽
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it is working, it's working. Sometimes, it doesn't聽work and the target is usually the last high. This is聽聽
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the first last high. This is the second last high. That's what I do. This is on the reversal. This is
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on the continuation. You see, this is the break of聽structure over here. If you just read on M15, you聽聽
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are not going to a lower time frame. You can also聽do that. Once you receive the alert, you go to M15,聽聽
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find the reversal pattern. And then here is another聽break of structure. So this break of structure is from聽聽
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this candle. So this is our order block. If I put聽it at 50 percent, I didn't get it. If I put it with the聽聽
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full candle, I got it. So there is always plus聽
and minus whichever that you want to trade. But聽聽
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I personally like to trade simple. However, it doesn't聽mean that the complex one doesn't work. But if you聽聽
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want to trade on minutes chart, I suggest you to聽learn about this..if you want to trade on minutes聽聽
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chart. This also works on a higher time frame chart.聽But to me if it is a higher time frame, I just
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trade as simple as possible because that's easy or聽less headache to me. So I'm not against all those
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who trade complex like this because I know it's聽very good. Anyway, that is all for today. I hope now聽聽
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you understand how to trade the supply and demand.聽It is actually closely related with the order block.
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So it is up to you whichever you want to trade聽as long as it makes money for you. Thank you. Bye
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