This article is the first in a free five-content course taking you from trading (supply and demand strategies) at your computer to the Porsche dealership buying your first supercar.
I’ve been in Forex for 15 years, but how I trade evolves every year. Hence, in this five-content series, I will show you my most prominent trading strategies that I use right now with live trades and my complete thought process.
Many of the videos I do on this channel are just for fun. Some are to test other traders’ strategies, and others share crazy account flips, like my Martingale content the last time.
However, I want to dig in over the next few weeks and give you the lessons you need to become a successful trader in the short or long term.
Hence, if you want to be a successful trader, even for a beginner, watch the Youtube video I shared above, smash that like button, and subscribe to the channel.
Supply and Demand Trading Strategy
This content’s strategy lesson is how I use supply and demand as key levels to trade from in the markets. There’s a reason behind every trade I take, and you will learn those secrets now.
I had a trade that banked over $4,000 in my VIP group.
We tapped into my supply zone, and I waited for a reaction. I had a sell limit order trigger lower for all the VIP members and made $4,000+.
I’ll explain this trade soon, but let’s go into my FX book.
Using supply and demand, I made over $15,000 in a few weeks. It is my number one strategy in 2023.
I took six trades and won them. Some were pretty explosive moves here, banking me $5,000, $4,000, $2,000, $1,000, $1,000, and $1,000.
I will show you all these trades, so stick around to learn how to have profits like these using supply and demand tactics.
Understanding the Supply and Demand Trading Strategy
I will use the following examples to explain how I draw my supply and demand zones.
We were clearly in an uptrend over this past week on the GBPUSD. Hence, I will show you a bunch of demand zones.
Every time we have a big push in the market, they create demand zones, which is the last bearish candle before the move.
Then once I have the demand zone, I’m looking to enter trades when we exit it. I could place a buy limit order with a stop loss under it.
When I try to stay safe, I’ll place the take profit at a previous level (swing high). If I want to play the imbalance, I look for one earlier.
However, I generally target a recent level, and trade like this (below) would bank 76 pips at a 2.6 risk-reward ratio.
In another example, you could have a buy limit order at the start of the demand area. Your stop loss can be under my demand zone, targeting a recent significant level.
The second example is a 3.89 risk-reward ratio.
In another example, we can follow the same procedure, which could’ve been highly profitable by targeting an earlier level. The stop loss would be below the demand zone for a 3.38 risk-reward ratio.
Concept Behind the Supply and Demand Strategy
Why this works is not because retail traders like you and I are creating the big moves. The big banks are behind them, telling us they are putting in several buy orders at these levels.
Hence, what we want to do is join in on the fun.
We wait for the price to return to that demand every time. We know it’s a good level because the big institutions think this is an excellent price. Hence, that will push the market, and we can ride along with those trades.
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Live Trade 1: GBPUSD (Buy)
We got a price push above, so I marked out my demand zone (the last bearish candle before the move).
I believed that the banks were getting involved in the market here. Hence, that’s the price I liked and wanted to get into the market on.
The price broke out of that demand zone with some wicks present, and I took the trade, banking $4,100 from 60 pips in two hours.
As for the trade, I usually find my demand zone on the 5M charts. Usually, I draw it out from the last bearish candle before the big move, but in this case, I decided to box up the whole consolidation I found there.
I thought that would be the safest way to do it, and it worked excellently.
When the price entered the demand zone, it started wicking off. There was a little push above at some time, but I didn’t enter the trade yet because I wanted to have more confluences.
Thus, when the price returned, it continued to respect that demand zone. I eventually entered it at a perfect level, and the result was insane.
I think I had news on my side here. Nonetheless, it was a fantastic trade that smashed my take profit.
I used a risk-reward ratio of 1:4, i.e., I risked 1% to gain 4% – a magnificent win worth $4,100.
Live Trade 2: GBPUSD (Sell)
My second live trade, from my VIP room, also made over $4,000.
Instead of demand zones, I use supply zones since it is a sell trade. I got on the 5M chart.
We had a solid move down, and I feel like the last bullish candle before it was a good supply zone. The price returned to the level but pushed below quickly.
Hence, you could have had your stop loss above the supply zone and targeted a previous level, almost for a 1:5 risk-reward ratio.
As the price enters the zone, it opens a (sell limit) order for you to shoot down, and you win a big trade.
However, I wanted to see a more prolonged reaction to that supply zone instead of that sniper entry people are looking for.
Hence, I waited until much later for the trade provided to over 1200 VIP members. Everyone won and was delighted. My copy trader placed this trade for them automatically in the MetaTrader accounts.
Exactly what happened?
We tapped into the supply, and the price started pushing below how I wanted.
I didn’t place my trade at the supply level. Sometimes I will; other times, I won’t.
In this case, I waited for a reaction. Once I got it, I had to decide where would be an excellent level to enter this trade.
Then, I spotted a little imbalance earlier and thought the price would fill it, so I put my sell limit order there.
PS: Don’t worry. I will get deeper into imbalances in the second episode of this trading course. Sometimes, imbalances show us where the price will go or where it can come from.
I entered the trade at the imbalance, with my supply as my main confluence. It went down, smashed my take profit. Everyone in VIP was happy.
It was a 3.33 risk-reward ratio. My stop loss was ten pips. As for my target, I went for past levels. If the price goes down, it’s likely to return there later.
Live Trade 3: NASUSD (Buy)
My favorite trade of the week was one in NASDAQ. It was on the 5M time frame.
I set my demand zone after a big push out of an area.
The push is from banks and large institutions. Hence, I felt it was an excellent level to engage in a trade.
It was in the five-minute time frame, so there was no need for too much patience. I only had to wait a little bit.
The price entered my demand zone and was wicking out of it. Eventually, I waited for a level to break before entering the trade that goes in my direction, smashing my take profit.
It was an amazing trade of 10,000 pips. I used a 1.526 risk-reward ratio. Hence, I made over 5% from this single trade, all because of the strength of the beautiful demand zone.
Live Trad 4: USDJPY (Buy)
My last trade from this strategy is also a winning one.
Interestingly, there were two demand zones near each other, but why did I go for the lower one? The lower level had a good buying pressure that the higher one tested before pushing up quickly.
Hence, I felt that was a good demand zone area.
On this trade, I also used my New York strategy (one of my favorites) discussed weeks ago. It’s a video I did two weeks ago.
I’ll probably cover it in this course later, but here is the pattern:
That’s what we saw in our example.
It is something I only do in the New York session.
The price came down into the New York session, and I got my retracement, then the break, the retest, and finally, I won the trade.
One of the most important things about this trade is that we had a strong demand zone with the additional confluence.
I already love my New York trading strategy but will win more trades if I add my demand and supply zone strategies.
This content is just the first of the five in the series.
By the end, you’ll be able to trade like me – like an absolute pro, and that’s what I want for you.
If this was too complicated, please comment below the article if there’s anything I need to explain better.
I’ll see you next time for episode two.