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supply and demand Reversal trading strategy
What is supply and demand trading?

A demand level/zone is where big buyers like big banks and institutions place their buy orders:
Demand Level Zone Trading
A supply level/zone is where big sellers like big banks and institutions place their sell orders:
Supply Level Zone Trading
You identify supply and demand entry levels with 10X Trading System buy and sell signals.

These levels/zones are often located at tops and bottoms but can sometimes also happen inside trends.

So why do you want find these levels/zones and trade this strategy?

It's because you often see strong price moves when price bounce here. 

The size of the orders from big banks and institutions creates big buying and selling pressure.
intraday supply and demand trading
The reason I say zones is because trading is rarely perfect. You don't always see price bounce on a supply/demand or support/resistance level to the point. So it can be helpful to think of levels (supply/demand, Fibonacci, trendlines, supply/demand, horizontal support/resistance, etc.) as zones.
Supply and Demand Price Action
By doing a quick technical analysis of a signal candle (the candlestick with buy or sell signals).

You can determine the strength of the buyers and sellers.

For example:

If buyers are in control and show buying strength, the candlestick should close at the high of its range.

The middle point of (the 50% level of the candlestick body) will be a strong demand (support) level.

When you trade this strategy and enter with limit orders at the demand level you will miss some trades.

Why?

Because sometime price does not retrace to the hidden demand (support) level:
supply and demand indicator
So should you use the supply demand entry or just enter at close of a 10X signal candle?

I prefer the good risk reward ratio you get with the supply demand entry over quantity of trades.

I'm ok with missing some trades when trading the supply demand entry because I know with those I do take, I have a better risk reward ratio so I can be more aggressive with my risk and money management. 

If you prefer quantity, you can enter at the close of the candle when you have a 10X signal.
Supply Level Zone Trading
supply and demand trading rules
How To Find And Trade Hidden Demand Levels:

1. Wait for a 10X buy signal at a high or support.
2. Strong bullish close (upper 1/4 of candlestick).
3. Limit order at middle of candlestick body.
4. Place stop loss order below 10X signal symbol.
5. Take profit on trailing stop loss or 1+ risk reward ratio.

How To Find And Trade Hidden Supply Levels:

1. Wait for a 10X sell signal at a low or resistance.
2. Strong bearish close (lower 1/4 of candlestick).
3. Limit order at middle of candlestick body.
4. Place stop loss order above 10X signal symbol.
5. Take profit on trailing stop loss or 1+ risk reward ratio.

For example:

Supply and demand trading with risk reward ratio = 1:
Supply Level Zone Trading
Feeling confident in your analysis?

Trade with a higher risk reward ratio.

Supply and demand trading with risk reward ratio = 2:
Supply Level Zone Trading
high probability Supply And demand Rules
I just want to share two additional rules you can use for higher win rate and risk reward ratio.

1. Trade in direction of higher time frame trend.

2. Trade signals at higher time frame support resistance levels.

I trade 10X signals at most support and resistance levels.

But if you focus on taking signals in the direction of the EMA 50 trend rule or in the direction of higher time frame support and resistance, you can be more aggressive with your take profit targets.

My preferred time frames when trading the supply demand strategy are 1 min, 5 min, 1 hour, and daily. 

Most traders look at daily and 1 hour so levels on these time frames are very important. 

So if you trade these levels following 10X trading signals on lower time frames, for example 1 min and 5 min, you will get those 10+ risk reward ratio trades (why I named it 10X) when you get the hang of it.

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Johan Nordstrom Trading Walk
I'm a family guy in my early 30's who learned how to trade the markets in a simple yet effective way. During university, I studied investing and graduated with a master's degree in risk management. Quickly, I realized that I was onto something. I started helping friends and taking students. My students started getting results, spent less time in front of their screens, and their accounts grew consistently. Learn more about me here.
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