Lots of traders still find it difficult in picking the right zones when analyzing the market.. If you are having problems in identifying an high probability zones Then this 🧵🪡 is for you Like & Repost for others !! An 𝕏 Th~read series !! Open⤵️
Supply and Demand is one of the most popular forex trading systems among traders. Supply and Demand, commonly shortened to SnD or S/D, is a key economic principle used in real-world markets. It emphasizes the strategy of purchasing at low prices and selling at high prices.
Identify the major Demand & Supply Zones: • A supply zone is the price area where traders have the highest selling interest or potential • A demand zone is the price area where the traders have the highest buying interest or potential
One thing i will like you to take note before marking drawing your Supply and Demand Zones, is that you should be able to identify what trend the market is driving at i.e the structure in which the market is moving When a market is bearish you are expecting to look for sells ,
But what makes a demand/supply level one of high probability? We have several criteria in which we use in identifying a high probability zones/Pois , I will talk in few once which are :- 1. IMBALANCE 2. INDUCMENT 3. BREAK OF STRUCTURE (BOS) I will explain them in details
1. IMBALANCE : A zone that has an imbalance ,we mark the origin has our zone (demand/supply) Imbalance can both the driven by sellers and buyers in the market The imbalance occurs as an aggressive move purge by either a buyer of a seller , which causes a sudden large momentum
2. INDUCEMENT: A high-probability demand or supply zone should have inducement above or below it, respectively. I prefer seeing weak levels before my demand or supply zone, as these attract traders to place orders, thus creating enough liquidity to support the move I'm interested
3. BOS: A high-probability supply or demand zone should break structure impulsively. This indicates genuine buying or selling intentions around that zone. This typically creates an imbalance, which we expect the price to return to and fill. An impulsive BOS is a positive
There are many other factors I consider in a demand level, such as a sweep of liquidity, order flow continuation, and more, but I'll keep this thread short. I hope you enjoyed it and learned something. Let me know in the comments. Like and Retweet—someone might need this.
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