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    12.01.2021 - Supply - Demand Zones - OctaFX - LTS

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    RISHABH JAIN
    This document discusses supply and demand zones in currency trading. It defines supply and demand zones as areas where large buy or sell orders are assumed to exist. It identifies four types of supply and demand zones: rally-base-rally, drop-base-drop, rally-base-drop, and drop-base-rally. Rally-base-rally and drop-base-drop zones signal price continuation, while rally-base-drop and drop-base-rally zones signal price reversals. The document emphasizes finding and trading reversal zones, as they offer the highest probability trading opportunities. It also notes that supply and demand zones are formed by large banks and traders placing substantial buy and sell orders compared to retail traders.

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    12.01.2021 - Supply - Demand Zones - OctaFX - LTS

    Uploaded by

    RISHABH JAIN
    40 views27 pages
    This document discusses supply and demand zones in currency trading. It defines supply and demand zones as areas where large buy or sell orders are assumed to exist. It identifies four types of supply and demand zones: rally-base-rally, drop-base-drop, rally-base-drop, and drop-base-rally. Rally-base-rally and drop-base-drop zones signal price continuation, while rally-base-drop and drop-base-rally zones signal price reversals. The document emphasizes finding and trading reversal zones, as they offer the highest probability trading opportunities. It also notes that supply and demand zones are formed by large banks and traders placing substantial buy and sell orders compared to retail traders.

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    Trading strategy 2

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    10. 12.01.2021 - Supply-_-Demand Zones - OctaFX - LTS

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    This document discusses supply and demand zones in currency trading. It defines supply and demand zones as areas where large buy or sell orders are assumed to exist. It identifies four types of supply and demand zones: rally-base-rally, drop-base-drop, rally-base-drop, and drop-base-rally. Rally-base-rally and drop-base-drop zones signal price continuation, while rally-base-drop and drop-base-rally zones signal price reversals. The document emphasizes finding and trading reversal zones, as they offer the highest probability trading opportunities. It also notes that supply and demand zones are formed by large banks and traders placing substantial buy and sell orders compared to retail traders.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    40 views27 pages

    12.01.2021 - Supply - Demand Zones - OctaFX - LTS

    Uploaded by

    RISHABH JAIN
    This document discusses supply and demand zones in currency trading. It defines supply and demand zones as areas where large buy or sell orders are assumed to exist. It identifies four types of supply and demand zones: rally-base-rally, drop-base-drop, rally-base-drop, and drop-base-rally. Rally-base-rally and drop-base-drop zones signal price continuation, while rally-base-drop and drop-base-rally zones signal price reversals. The document emphasizes finding and trading reversal zones, as they offer the highest probability trading opportunities. It also notes that supply and demand zones are formed by large banks and traders placing substantial buy and sell orders compared to retail traders.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 27

    Trading

    Supply & Demand Zones

    Speaker: Manish Patel


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    Is it like I and Me
    I/ME I
    I/ME I

    I/ME ME
    I/ME ME

    4
    Supply/Demand: A zone, where we assume
    there are sell/buy orders stacked.

    Support/Resistance: A level, where price tested


    a few times and failed to breakthrough.

    A price consolidation is when after a trendy move by market, prices come to a flat
    period where prices don't move much at all on either side. You can say that the
    forex market is taking a rest before it continues trending.
    5
    Supply/Demand

    Large orders
    can sometimes be seen on
    our charts as Consolidations

    6
    Support/Resistance Supply or Demand

    Supply or
    Demand
    Resistance or Support
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    a sharp rise or, a sharp decline appears in price.

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    price rising, demand greater than supply. price falling, supply
    greater than demand. supply and demand , consolidation .

    10
    How & Why Supply And Demand Zones Are Developed?

    when the banks and


    other big traders buy or sell retail traders can't cause price to rise or
    fall Only the banks
    can make price move

    In Forex, the banks can never place their full position all at once.

    11
    Here's their problem:

    not enough people exist/manage on


    the opposite side

    12
    First: the banks place what positions
    they can, and price shoots away.

    They then: make it return to the source,


    the point they placed their initial
    position, to get their remaining positions
    entered.

    Once they do: price fully reverses, and a


    large move ensues.
    So, supply and demand trading is all about finding points where
    the banks have bought or sold - supply and demand zones - and
    then jumping into trades when price returns to pick up the rest of
    the banks’ position to get into the reversal, right beside the banks.
    13
    Price moves from supply zones to demand zones and back: over and over again.
    If we identify these zones, which I'll show you how to do, later on, we can get
    into these moves precisely at the point they begin. That'll give us a low-risk entry
    with a very large risk to reward ratio.
    14
    Understanding The Zones - Demand Zones
    Zones

    Demand Zones

    15
    Understanding The Zones - Supply Zones

    Supply Zones

    16
    Types Of Supply And Demand Zones

    Rally-Base-Rally Drop Base Drop

    Rally-Base-Drop Drop Base Rally

    17
    Rally-Base-Rally and Drop-Base-Drop

    Continuation Zones:

    price moves in one direction consolidates


    then continues in the same direction zones always form mid-move

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    Rally-Base-Drop Drop Base Rally

    Reversal Zones:

    Form, when price reverses direction, bases, then sets off a new swing. These
    zones form when one major swing changes to the other, usually from the
    banks buying or selling large quantities of currency.

    Reversal zones are the ones you should be trading using Supply and Demand
    methods. They're the highest probability zones in the market.

    These reversal zones are formed by the banks and other big traders placing
    huge buy and sell positions, compared to the much smaller positions they
    place to create continuation zones.

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    your goal is to simply gain experience finding and
    trading zones

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    Rally-Base-Rally

    23
    Drop Base Rally

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    Rally-Base-Drop

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    Drop Base Drop

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    Profit-taking zones, and Trade placing zones.

    created
    via the banks taking specific action in the market, either taking profits or
    placing trades

    27

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