(Good) Supply and Demand Tradin...s

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Supply and Demand Trading

Transcript of (Good) Supply and Demand Tradin...s

  • userSticky NotePrice elements:- Location (too cheap/too expensive); Help trading in Bull/Bear trap; Look for higher timeframe- Direction (trend); From larger time frame

    * Using the combined analysis of institutional order flow, location (perceive value) and direction price tells us when it is time to buy or sell.* his helps filter out low probability opportunities and adds a sense of validity to others.* Combine with: "Sam Seiden - Trends, Gaps, and (higher psychology analysis)* Technical analysis, SnR, and Candlestick pattern is important in Higher timeframe* Support and Resistance areas add extreme confluence to Supply and Demand levels. This is due to psychology and the differences between each style of trader. When you combine the two, there are double the amount of potential willing buyers/sellers making the upcoming trade much higher probability (Use it right timeframe).

    ** If there is a huge drop/rally; that doesn't mean there is a huge seller/buyer at certain level. it is depend on the higher timeframe; the perceive value in big picture** Order flow can be confirm in higher time frame where high probability value being percieve** Find the Big money** Sometime there is false demand (in major structure) to create illusion to trap bear; for the big money to get their buy order executed** The idea is to determine where the big money/big flow order is sitting; and follow them; make sure it is fresh; where is the TRUE perceive value by the big guys

    userSticky Note--> S/R can be broad base areas and help probability to trade. these area help determine where to look for potential setups and add confluence to our analysis. price can spend a lot of time within S/R areas.--> S?D is very exact dwfinws areas an imbalance is price took place. In detemining areas of S/D it offers us exact areas for entry. Price should spend very little time in S/D areas.--> The more time in area, the more indecision had been made--> Any time there is indecision, that clearly tell that the order flow does not recide there as we anticipate--> We want clear decision move (Less time) AND we them happen very abruptly--> When an area or order spend little time, it is indicatinf there are not many traders willing to take the opposing side of the current direction--> S/D is exact area which is the origin of the drop/rally in price following the break of the previous S/R level (S become R)--> Objective: It is under value or overvalue.