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Swing and Positional Stock

Supply and Demand Zone Trading
Trading Course

Back to: Trading with Smart Money

Automate Supply and Demand Zone Trading

meeting minutes
with In this article, I will discuss Supply and Demand Zone Trading in detail. Please read our previous article discussing How to

in Meet. Trade with Smart Money. As part of this article, we are going to discuss the following pointers, which are related to Supply
and Demand Zone Trading.

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Price Action
 How to Study Candlestick
 Candlestick Analysis in
Trading 1. Structure of the Market.
 Price Action Analysis 2. What is the Supply-Demand Zone in Trading?
 Advanced Price Action 3. How do you find a supply-demand zone in trading?
Analysis 4. Different types of zone
 Thrust Pullback and 5. How do we measure the strength of the zone?
Measuring Move Analysis
6. When did the supply and demand zone break?
 How to Trade with Smart 7. How do we trade with the supply and demand zone?
Money
8. Odd enhancer for trading with supply and demand zone
 Supply and Demand Zone
Trading
STRUCTURE OF MARKET
 How to Day Trade with
Trend The price goes through the following phases
 Multiple Time Frame
Analysis 1. ACCUMULATION
 Head and Shoulder Patterns 2. REACCUMULATION
 How to Trade with Support 3. UPTREND
and Resistance
4. DISTRIBUTION
 Advanced Candlestick
5. REDISTRIBUTION
Analysis
6. DOWNTREND
 Trendline Trading Strategy
 WRB Trading Strategy
 5 Candlestick Patterns Every
Trader Should Know

Day Trading Strategies

 VWAP Trading Strategy
 Gap Trading Strategies ACCUMULATION Smart money removes the floating supply of stock by buying. This process is called accumulation.
 Intraday Open High Open
Low Trading Strategy
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 PIN BAR Trading Strategy
 Trading with Sideways Price
Action Area
 Pullback Trading Strategy
 Intraday Breakout Trading
Strategy

Risk Management
 3 Techniques for Risk
Management in Trading
 4 Things I Wish I Knew
TREND UP Smart money aggressively moves prices up
When I Started Trading

Stock Selection & Live DISTRIBUTION SM will take advantage of the higher prices obtained in the rally to take profits by beginning to sell the stock
Scanner back to the uninformed traders/investors
 How to Make Your Own Day
Trading Scanner LAWS OF SUPPLY AND DEMAND Trading
 Stock Selection for Intraday
Trading All financial markets work on the universal law of Supply and Demand.

Intraday Trading Course Law of Demand– The higher the price of an item, the less the demand (buyers don’t want to buy at a higher price), and the
 Intraday Trading Course lower the price, the higher the demand (buyers want to buy at a low price)
 Multiple Timeframe Analysis
for Intraday Trading Advertisements
 VWAP Trading
 Opening Range Trading
Strategy
 Opening Range Breakout

Volume Price Action Analysis

 Volume Analysis in Trading
 Volume Price Action
Analysis
 Volume Spread Analysis in
Trading
The Law of Supply- The higher the price, the higher the supply (sellers want to sell at a higher price), and the lower the price,
 Candlestick Pattern Analysis
the lower the supply(sellers don’t want to supply at a lower price.
 Finding Entry Opportunity
using Volume Spread
What are Supply and Demand Zones
Analysis
 Spring and Upthrust Trading Supply-demand is nothing but the border area of support or resistance
Strategy
 VSA Trading Strategy Let’s analyze NIFTY 50 STOCK

Option Chain Analysis

 Option Chain Analysis in
Trading

Indicator
 RSI Trading Strategy

BTST
 BTST Trading Strategy

TECHNICAL ANALYSIS
MASTERCLASS
 Technical Analysis in Trading
 Market Structure in Trading
 Understanding Market
Structure through Swing
 Supply and Demand Trading Advertisements

(Part – 1)
 Supply and Demand Trading
(Part – 2)

Chart Patterns
 Top 7 Chart Patterns in
Trading Every Trader Needs
to Know
 How to Trade Bull Flag and
Bear Flag Pattern

CPR and Pivot Point and

VWAP Trading System
 Pivot Point Trading In the chart above, you can see a demand zone (broad support level) and a supply zone (broad area of resistance).

Strategies
What we want to find at the price zones where supply overwhelms demand and supply overwhelms supply.
 Central Pivot Range Trading
Strategy
The former is known as SUPPLY ZONES. When the market bumps into SUPPLY ZONES, the price will drop. Then, you
 Swing Trading Strategy
Using Pivot Point can make money by shorting the market.
The latter is the market DEMAND ZONE. With the support of demand, the price will rise. Then, you can profit in a long
Trading Strategies position.
 Darvas Box Trading Strategy If the supply zone is broken, it becomes a demand zone. pullback test from the demand zone, you can go long.
 Volatility Contraction Pattern
Trading Strategy How to Find Supply and Demand Zones in Trading
 Volume Spike Trading
Strategy Two steps to identify the supply and demand zones.
 Fibonacci Trading Strategy
 Fibonacci Trading Strategy 1. Look at the chart and try to spot large successive candles. It is important that the price moves a lot.
using Confluence Factor 2. Establish the base (usually sideways price action area) from which the price started the quick move.

Smart Money Trading

Different Types of Supply and Demand Formations
Strategies
 Order Block Trading There are different supply and demand zone patterns. Some of the more popular ones are shown below:
Strategy
 Smart Money Market Advertisements
Structure Trading Strategy
 Breaker Block Trading
Strategy
 Liquidity Hunting or Stop
Hunting in Trading
 Sniper Order Block Entry
Trading Strategy

Pullback Trading Master

Class
 6 Price Action Pullback
Trading Strategy Types You
Should Know TREND CONTINUOUS BASE

 Top Mistakes to Avoid When

Pullback Trading and How to 1. RALLY BASE RALLY(RBR)

Overcome Them? 2. DOWN BASE DOWN (DBD)

 Pullback or Reversal in
Trading: How to Spot the TREND REVERSAL BASE

Difference
 2 Pullback Trading 1. RALLY BASE DROP (RBD)

Strategies You Must Know 2. DOWN BASE RALLY (DBR)

Swing Trading: The Complete And

Master Class Trading Guide
 A Comprehensive Guide to FLIP ZONE
General Market Analysis in
Trading
 Mastering Market Sentiment
Analysis: A Guide to
Informed Trading
 Mastering Market Dynamics:
Industry Rotation and Its
Impact on Swing and
Positional Trading Strategies
 Momentum Trading Strategy

How to Become a Successful

Trader
 How to Become a
Successful Trader

Trading Types
 What is Trading? An
Introduction to Trading
Strategies
 Stock Trading: What is, Why,
How, When and Where
 Forex Trading: What is, Why,
How, When and Where
 Commodity Trading: What
is, Why, How, When and
Where
 Options Trading: What is,
Why, How, When and Where
 Cryptocurrency Trading:
What is, Why, How, When
and Where
 Day Trading: What is, Why,
How, When and Where
 Algorithmic Trading: What
is, Why, How, When and
Where

Most Popular Trading Books

 Most Recommended
Trading Books
 Most Recommended
Intraday Trading Books
 Most Recommended Swing
Trading Books
 Most Recommended
Candlestick Trading Books
 Most Recommended Price
Action Analysis Books

NOW, PUTTING ALL THIS INTO A NIFTY 50CHART

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STRENGTH OF SUPPLY AND DEMAND ZONE

How did the price leave the level? STRENGTH OF THE MOVE

The Logic: The stronger the price moves away from a zone, the more out-of-balance supply and demand are at that zone. A
heavy order is placed by smart money.

How much time did the price spend at the zone? TIME AT LEVEL

The Logic: The less time the price spends at a zone, the more out-of-balance supply and demand are at the price level.
Smart money aggressively entering

At price levels with supply and demand zones more out of balance, the price will spend the least amount of time at the level

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How far did the price move away from the zone before returning to the zone?

The Logic: The farther the price moves away from a zone before returning to that zone, the greater the reward to risk and
probability.

When the price returns to that supply level for our short entry, we have a good idea of where the buyers are (the demand) and,
just as importantly, where they are not.

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How many times is the price approaching the zone? FRESHNESS OF BASE

First-time stock retrace to the base is the strongest to enter

When does Supply/Demand break?

Supply and Demand levels eventually break after a zone is tested many times or during a strong move. This is due to the
remaining orders being triggered and gradually removed or an overwhelming number of orders in the opposite direction
breaking the level.

Price action

If the price stays near or at these zones & doesn’t fall much, then there is a high probability that they will break the zone
A strong move to the zone may break the zone
low volume test confirms the zone

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HOW TO ENTER DEMAND AND SUPPLY USING PRICE ACTION?

1. Find the SD zone on HTF(HIGHER TIME FRAME), then wait for the price to come to this level
2. See any acceptance or rejection from this zone on trading time frame(TTF)
3. Any reversal price action signal on TTF
4. Entry in the direction of the dominant trend

Suppose context downtrend, price rally to the supply zone on TTF, then any bearish reversal PA signal for an entry
short
Also, notice the volume on these reversals. A low-volume test is a good sign & they are highly probable trades.

TIPS for day trading: The supply and demand zones are high on the previous day and low on the previous day. Look for price
action around there for acceptance or rejection of these zones

Let’s do an example

Find the supply and demand zone in a higher time frame

In an hourly time frame, we find the zone

Big picture shows

1. whether the trend is up or down – determines which side we want to be on

2. Where are the big-picture support and demand levels?

We don’t want to be long below the supply zone

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WHEN THE PRICE APPROACHES DEMAND ZONE

WE WANT TO SEE SIGN OF STRENGTH PRICE ACTION FOR CONFIRMATION OF THE ZONE

1. MOMENTUM LOSS(DECREASING CANDLE RANGE AND BODY

2. LOWER WICK
3. MIX OF BOTH RED AND GREEN CANDLE

Entry on the trading time frame

ENTRY SIGNAL CANDLE

Candlesticks in Supply and Demand

1. PIN BAR
2. ENGULFING
3. OUTSIDE CANDLE

Odds Enhancers example

1. Trade with the trend

2. If INDEX AND SECTOR SHOWS POSITIVE, THEN GO LONG FROM DEMAND ZONE

Supply and demand zone trading is just one of many strategies traders use, and, like any strategy, it is not foolproof. It
requires a good understanding of market behavior, patience to wait for the right setups, and strict discipline to follow a pre-
determined trading plan.
Sign up
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Gemini

In the next article, I will discuss How to Day Trade with the Trend in detail. In this article, I explain how to trade with the
supply and demand zone in detail. I hope you enjoy this article. Please join my Telegram Channel and YouTube
Channel as well as my Facebook Group to learn more and clear your doubts.

Dot Net Tutorials

About the Author: Pranaya Rout

Pranaya Rout has published more than 3,000 articles in his 11-year career. Pranaya Rout has very good
experience with Microsoft Technologies, Including C#, VB, ASP.NET MVC, ASP.NET Web API, EF, EF Core,
ADO.NET, LINQ, SQL Server, MYSQL, Oracle, ASP.NET Core, Cloud Computing, Microservices, Design
Patterns and still learning new technologies.

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How to Trade with Smart Money How to Day Trade with Trend

12 thoughts on “Supply and Demand Zone Trading”

ARNOLD
MARCH 14, 2020 AT 10:42 PM

i am beginner wants to learn forex

Reply

COLLIN GONYE
APRIL 6, 2020 AT 7:20 PM

Good stuff, enjoying your everything you explained I can visibly see it on my charts.

Reply

JJKING
APRIL 7, 2020 AT 5:15 PM

Great! This is straight to the point without beating about the bush. Thank for making my day.

Reply

SANDEEP
MAY 16, 2020 AT 4:34 PM

thanks make this demand supply zone article

Reply

SHANTU
JULY 12, 2020 AT 4:26 AM

Extremely useful discussion on S/D zones. Very knowledgeable.

Reply

FRANK DENNIS
JANUARY 9, 2021 AT 5:30 PM

you kill it all,bravo

Reply

BALJEET
JANUARY 16, 2021 AT 2:18 PM

wow i have recommend your channel to my channel u r great…

Reply

PREM BHATT
MARCH 28, 2021 AT 12:26 PM

great knowledge
 Reply

BHASKAR
JULY 24, 2021 AT 7:54 AM

Great

Reply

VAD
AUGUST 11, 2022 AT 8:19 PM

thanks

Reply

NITIN VAJA
SEPTEMBER 17, 2022 AT 9:32 PM

Grateful for deep knowledge in briefly.

Reply

MUKESH MANDAL
APRIL 7, 2025 AT 8:39 AM

Learning

Reply

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