๐๐ข๐ช ๐ง๐ข ๐ฉ๐๐๐๐๐๐ง๐ ๐ฆ๐จ๐ฃ๐ฃ๐๐ฌ & ๐๐๐ ๐๐ก๐ ๐ญ๐ข๐ก๐๐ฆ
(as simple as it needs to be)
A th~read ๐งตโคต๏ธ
(as simple as it needs to be)
A th~read ๐งตโคต๏ธ
Note:
This thread might be long because I want include all details to make sure you perfectly understand it.
So make sure you read till the end!
โข But before begin:
Kindly retweet the first tweet up there to help other traders learn too.
Done? Thank you!
Now let's dive โคต๏ธ
This thread might be long because I want include all details to make sure you perfectly understand it.
So make sure you read till the end!
โข But before begin:
Kindly retweet the first tweet up there to help other traders learn too.
Done? Thank you!
Now let's dive โคต๏ธ
As you should know by know... Supply and demand zones are everywhere, on every timeframe.
But not all of them are tradable.
If you try to trade all of them, you're setting yourself up for failure.
Here's what to do instead:
Trade only valid ones.
How? โคต๏ธ
But not all of them are tradable.
If you try to trade all of them, you're setting yourself up for failure.
Here's what to do instead:
Trade only valid ones.
How? โคต๏ธ
The first question you want to ask yourself when picking you zones and area of interest is...
"What did this zone achieve?"
The first way to validate a zone is by checking to see if that zone breaks some structure.
But why is this so important? โคต๏ธ
"What did this zone achieve?"
The first way to validate a zone is by checking to see if that zone breaks some structure.
But why is this so important? โคต๏ธ
If you think about it...
The whole game we're playing with Supply & Demand is to identify where big money stepped into the market to:
โข cause significant price shifts
โข break strong or weak structure (H/L)
โข Take out IRL & ERL behind those structures...
etc
The whole game we're playing with Supply & Demand is to identify where big money stepped into the market to:
โข cause significant price shifts
โข break strong or weak structure (H/L)
โข Take out IRL & ERL behind those structures...
etc
Then we anticipate that price will revisit that zone to fill up more orders and continue in the same direction...
Right?
Right?
Meaning that if you're trying to buy from a zone that didn't achieve at least a break of structure...
...just like the example below ๐
Then you're just playing with fire.
So the first way to validate a zone is that it must break some form of structure at least.
Moving on...
...just like the example below ๐
Then you're just playing with fire.
So the first way to validate a zone is that it must break some form of structure at least.
Moving on...
Now we have 3 types of structure...
Swing structure
Internal structure
& Fractal structure
The more significant the structure that a zone manages to break, then the more significant that zone should be.
A zone that breaks swing structure is stronger and holds more weight.
Swing structure
Internal structure
& Fractal structure
The more significant the structure that a zone manages to break, then the more significant that zone should be.
A zone that breaks swing structure is stronger and holds more weight.
Next step from there is to look at other confluences like:
โข Pricing
โข Flip Zone
โข Orderflow
โข Liq. Sweep
โข Inducement
โข Visible on HTF
โข Part of a price Chain, etc
Let's take them one after the other โคต๏ธ
โข Pricing
โข Flip Zone
โข Orderflow
โข Liq. Sweep
โข Inducement
โข Visible on HTF
โข Part of a price Chain, etc
Let's take them one after the other โคต๏ธ
PRICING:
The more well priced a zone is, the better.
But this is not to say that demands in premium cannot hold...
Or you cannot or shouldn't trade from supply in discount.
But trading from demands in discount and supplies in premium tends to have higher probability.
The more well priced a zone is, the better.
But this is not to say that demands in premium cannot hold...
Or you cannot or shouldn't trade from supply in discount.
But trading from demands in discount and supplies in premium tends to have higher probability.
FLIP ZONES
Generally we have two types of D&S zone...
Structure zone & Flip Zone.
A flip zone is a zone that not only breaks structure, but also takes out another 'strong' zone when it was created
On average, FLIP zones have a higher probability of holding.
Example ๐
Generally we have two types of D&S zone...
Structure zone & Flip Zone.
A flip zone is a zone that not only breaks structure, but also takes out another 'strong' zone when it was created
On average, FLIP zones have a higher probability of holding.
Example ๐
LIQUIDITY SWEEP:
Liquidity sweep is another way we can validate demand and supply zones.
A zone that takes out a 'strong' liquidity or causes a 'strong liquidation' when it is created...
Such zones have increased chances of holding when price re-visits it.
Liquidity sweep is another way we can validate demand and supply zones.
A zone that takes out a 'strong' liquidity or causes a 'strong liquidation' when it is created...
Such zones have increased chances of holding when price re-visits it.
INDUCEMENT:
Inducement is a broad topic on its own, I'll write about it in more detail soon so make sure you follow and turn on notifications.
But generally...
A zone that has inducement before it has a higher probability of holding - more than a clean straight zone.
Inducement is a broad topic on its own, I'll write about it in more detail soon so make sure you follow and turn on notifications.
But generally...
A zone that has inducement before it has a higher probability of holding - more than a clean straight zone.
ORDER-FLOW:
I believe this one is self explanatory...
When you're trading from a zone that is inline with the predominant trend and orderflow...
Then you automatically have a higher chance.
Rather than trying to predict a reversal.
This example is a low probability trade โคต๏ธ
I believe this one is self explanatory...
When you're trading from a zone that is inline with the predominant trend and orderflow...
Then you automatically have a higher chance.
Rather than trying to predict a reversal.
This example is a low probability trade โคต๏ธ
PART OF A CHAIN?
When two or more zones are being respected.. That is what we call a price Chain.
And generally, trading from a zone that is part of a chain tends to have a higher probability of holding.
Although it's now building trendline liquidity - a topic for another day.
When two or more zones are being respected.. That is what we call a price Chain.
And generally, trading from a zone that is part of a chain tends to have a higher probability of holding.
Although it's now building trendline liquidity - a topic for another day.
VISIBLE ON HTF?
Most people don't pay attention to this one...
But a high timeframe zone will hold more weight than a low timeframe zone.
So it's important to also pay attention to higher timeframe structure, objective and narratives...
Most people don't pay attention to this one...
But a high timeframe zone will hold more weight than a low timeframe zone.
So it's important to also pay attention to higher timeframe structure, objective and narratives...
But note that all these are 'nice to have'...
but not necessarily a strict minimum criteria.
What do i mean by that?
The more confluence the better... But that does not mean that a zone is invalid or will not hold just because it does not have inducement.
but not necessarily a strict minimum criteria.
What do i mean by that?
The more confluence the better... But that does not mean that a zone is invalid or will not hold just because it does not have inducement.
But the most important one of them all and 'a must have' for me before I consider trading that zone...
Is that it must at least break a structure.
And ideally be visible on my medium timeframe.
After that I can then look to see if there are other confluences or not.
Is that it must at least break a structure.
And ideally be visible on my medium timeframe.
After that I can then look to see if there are other confluences or not.
Also note that we don't trade them in isolation...
You don't just see a sweep zone and decide to trade it like that.
You have to consider other things like market structure, currently orderflow, what has been mitigated, current and next objective, Etc.
They work hand in hand.
You don't just see a sweep zone and decide to trade it like that.
You have to consider other things like market structure, currently orderflow, what has been mitigated, current and next objective, Etc.
They work hand in hand.
And that's a wrap for now!
If you found this helpful;
1. Consider following me (@dnatechbro) for more
2. Also repost the first tweet for other traders to see and learn from too.
Happy trading ๐ฅ
If you found this helpful;
1. Consider following me (@dnatechbro) for more
2. Also repost the first tweet for other traders to see and learn from too.
Happy trading ๐ฅ
PS:
If you're looking for Funding to elevate your trading...
I recommend you check out my previous thread about FundingPips.
It contain everything you need to know about the fastest growing prop firm โคต๏ธ
If you're looking for Funding to elevate your trading...
I recommend you check out my previous thread about FundingPips.
It contain everything you need to know about the fastest growing prop firm โคต๏ธ
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