Training: https://tradewinprofit.podia.com/academy?coupon=SPRINGBREAK This is a great video for beginner day traders that …
Summary of the video “Supply & Demand Trading Secrets All Beginners Should Know” by Trade With Profit:
- Zones are not guarantees: Supply and demand zones are not foolproof indicators of future price movements. They can break, and that’s okay. Look for confirmation signals like double tops or rejections before taking a trade.
- Supply and demand is not a strategy: Don’t just blindly enter trades based on supply and demand zones. Use them as levels to watch for potential entries and exits within your overall trading strategy.
- Know the market direction: Before taking any trade, identify the overall trend of the market (upward, downward, or sideways). This will help you avoid taking trades against the trend.
- Look for zones on smaller timeframes: The author prefers to look for supply and demand zones on 5-minute charts, as he finds wider zones on higher timeframes to be too unreliable.
- Use confirmation signals: Look for additional signals, such as double tops or rejections, to confirm that a zone is likely to hold before entering a trade.
- Keep your zones close: The author prefers to focus on recent price action and use fresh zones created during the day, rather than relying on zones from weeks or months ago.
- Use zones as targets: Supply and demand zones can also be used as target levels for taking profits. For example, if you enter a long trade at a support zone, you could target the next resistance zone as your exit point.
The video then shows several examples of trades that the author took using these principles. He emphasizes that there is no right or wrong way to trade supply and demand, but that the methods he shared can help beginners avoid some common mistakes and develop their own trading strategies.