Transcription
Yes, my people. So, I'm going to show you how I use these exact zones here to make me a lot of money from how I find them, when I need to use them, right, the right conditions, and exactly what I'm looking for. So, let's get into it.
So, the first step is always, okay, always the trend. If price is in an uptrend, I am solely looking for buys in areas of demand. If price is in a downtrend, I am solely looking for sells in areas of supply. It's simple stuff.
Now, how do I find my areas of demand? The first step I need is a swing low. And that is when this candle is lower than the one to the right and lower than the one to the left. Awesome. The second step I need is to identify the lowest bearish candle. That means a bearish candle that is not contained within another bearish candle's wick. I can see that I start with the swing low. I see if it's bearish or bullish. It can be any color. In this situation, it is bearish. And then I work my way to the left, ignoring everything to the right. Has this candle here closed below this bearish candle? Or is it contained within its wick? I.e. this is the lowest point, right? Can you see this is the lowest point of this candle and this candle has not closed below its lowest point. So then this would be my lowest bearish candle. But in this situation here, I can see that this candle did okay close below the lowest point of this bearish candle. So this is my lowest bearish candle. The final step is waiting for a close above this lowest bearish candle I found. So now I know that this is my swing low. This is also my lowest bearish candle and just wait for price to close above it. As soon as I get that close above, I then draw my area of demand from this close to the swing low and I look for price to retrace into here to then take a long entry. We want a slightly more step in between them. I'll get into it.
But now, let's get into a downtrend. With a downtrend, it is the exact same thing, just the opposite. I need a swing high. I can see that this candle right high is higher than the one to the left, higher than the one to the right. It is a swing high. Now I need a close below the highest bullish. So this is my bullish candle. Sweet. Is this the highest bullish candle though? No, because it did not close above the highest point of this bullish candle. So now this becomes my highest bullish candle and I need a close below that. So with a a demand zone then we needed a close above the lowest bearish. In a supply zone, we need a close below the highest bullish. Exactly the same, just the opposite. And then I draw a zone from this low to this high. Okay? And this becomes my area of supply in which I'm looking for a short in.
So I like to do this on the 15minut time frame. I establish my trend, then establish if I'm looking for supply or demand. And now I have the supply or demand zones. there's certain criteria I want to make sure to make sure that this is a good zone and let me get into that now.
So now I have my higher time frame demand zone as stated by this green box. On my lower time frame I want to see clear bullish structure if I'm looking for longs and a clear six tap. Okay, I can see here that my lower time frame is clearly in an uptrend. If it's in a downtrend, I want to ignore that lower that higher time frame demand, right? I want the overall trend to be bullish and I want to see a clear six tap. I can see we have my one, two, three, four, five. This is now a high probability area in which I'm looking for liquidity to be swept slight confirmation and I am entering here right stop loss below targeting that higher high. So my higher time frame demand I want it to be aligned makes sense on the lower time frame structure and have that lower time frame six tab if it doesn't right if it's mitigated etc. I can see price broke it cuz some cases we break it and we mitigate it before forming that demand it becomes irrelevant. I cannot use that area and it is exact same thing when I'm looking for an area of supply. Okay, I want to see my lower time frame six tabs present in this area of supply. I can see it makes sense for me to short in this lower time frame and I can see we have a clear six tap here. So as price comes into my 15minute area of supply we found based on the criteria we just went through and we have a lower time frame six tap in this this is a high probability area for me to look for my confirmation to then ride price lower taking an entry something like that remember we need confirmation for every trade and this is how we do it.
Now let me get into some real chart examples okay let's start with this chart here this is ENQ on the 15minut time frame I can clearly see price is pushing to the upside on my 15-minut time frame. So, I'm not looking to reverse this. I'm looking to buy this. If I'm looking to buy this, I want to find an area of demand. The first step I need to see is a swing low. I can see we have a swing low here. Again, this swing low can be any color. In this case, it's not a bearish candle. So, I need to find my lowest bearish candle. I work my way to the left. Boom. This is the only really bearish candle I have. So, I need price to come and close above that. not a wick, closed above. Once we closed above this bearish candle and we have our swing low, that is our criteria for me to draw a valid low or what we call a 15minute area of demand. Now, how do I know if this is a good area? I want to drop down to my lower time frame and I want to see a clear six tap. Okay. And I want to see price being bullish on my lower time frame. I can clearly see price being bullish. Okay, my one minute I range from the one minute to the 3 minute. I can clearly see that this is bullish. And what can I see? A beautiful six tap. within this zone. I want it to be a nice obvious six tap. These are the highest probability zones. This is a super obvious one, two, three, four, five. Right? This is beautiful. So, I need to wait for price to come and sweep this liquidity. Boom. I cannot enter before it's been swept. Have my higher time frame demand. Have my higher time frame trend. Have my lower time frame six. And now I just need some sort of confirmation that we do want to bounce. So, let's see what we have here. Here I can sort of see a double bottom, right? This higher failed to make a new low and we closed above. So that would be a good indication that price wants to reverse here. Stop loss below the low, target that higher high. We play price out. I'm expecting this low to hold now and this high to break. Takes a bit of time. Let's see if price respects this structure. Boom. Very nice. Okay, nothing over complicated. Doing exactly what we learned.
Now, this example is a little more complicated, but I wanted to go through it. So, now I am bearish because I can see if I go to the left, we had a high, a low, a higher high, and then a lower low. This shift in structure tells me structure is bearish on my M15 time frame. I want to look for shorts. Where can I see a nice clean valid high? Nice clean area of supply based on our concept. If it's not too obvious, if you're not sure, leave it and look for a real clean one. But I can see a really clean swing high here. Okay, this is also my highest bullish candle. And we close below it here. All right, so as soon as we close below it, this validates this for me as an area of supply. Now, why in particular is this a good area of supply? If I drop down to my lower time frame, what am I looking to see? A clear six tap. So, I align it with structure from this low to this high. I can see my lower time frame is bearish, right? I'm expecting my lower time frame to take out this low and this low. If we're going to continue with the downtrend, what do we have here? An absolutely beautiful six tap. One, two, three, four, five. So, what does this zone become? this zone becomes a good high probability area to take a short once we have swept that liquidity. So we have patience. We need that liquidity to be swept or we cannot enter this trade yet. And again still waiting. Nothing's changed. Okay, beautiful. There is the sweep. I can now be looking to target this. If I'm not sure if it's too late or not, let me go back to the 15 minute and let me see what my 15-inut is doing. My 15-minut is still bearish between this high and this low. I can still look for shorts. This is still a valid area of supply. My bias hasn't changed. So, the trade is still valid. Let me drop down again back to my 1 minute. And now I need some sort of confirmation. I can't see anything yet that makes me want to sell. Possibly if we make a lower low here now. Higher, low, higher, high, lower low. After finally sweeping liquidity, let's play price out. Okay, we can make a new higher higher low. Higher high there. So, I still want that lower low to be made. Nice strong close. Boom. We got a nice close below. Now I can enter this short position. Stop loss above targets low. I'd look for a better entry, but let's just keep it mechanical for now. Nice. It gave a better entry. Let's see if it dumps to this low view.
And this may look I don't know if it looks hard. I don't know if it looks completed, but it's simple once you know exactly what you're doing. once you know exactly what you're looking for and then you avoid all the rubbish noise and you get involved in the high probability areas where we get these huge moves and suddenly price doesn't feel random.
So if you like this, if you want to learn my model, if you want to trade with me every single day live, if you want one- on-one direct help, you can do that. Link is in the description below. Apart from that, appreciate your time as always. Appreciate any likes and subscribes. Any questions, drop them in the comment section below.