what's going on traders in this video we're going to be looking at supply and
demand confirmation entries for trading forex or stocks or whatever you want
i noticed a lot of supply demand traders kind of make mistakes when looking for confirmation
entries there's a lot you need to know so in this video i will be explaining exactly
what to look for to increase your odds when looking for confirmation trades so stay tuned
all right guys thanks for tuning in to the video uh first things first if you
trade supply and demand if not uh there's a good thing to know there's three time frames
uh in this example i'll be using daily four hour one hour as my example so my daily would be the
highest time frame my four hour b would be my intermediate and my one hour would be my smallest
time frame which would also be your entry time frame but you can also enter on the four hours so
that's very important to know so for this example i will be using uh that that time
frame sequence you can just switch this around if let's just say you want to do you know four hour
one hour it doesn't matter like so there's another example is you know you could have four hour
one hour 15 minute it just doesn't matter your four hour just become the higher time frame your
one hour be intermediate and the 50 minute will be your entry so i'm just using um the daily four
hour one hour in this example to keep it really simple so right now we're looking at a daily chart
and let's just say you see this zone right here and you know you want to look
for confirmation in this daily demand zone well the first thing that you need to know
is you need to assess the trend and as you can see we are on an uptrend the trend line starts
from back here but we are on an uptrend we have uh supply zones being removed as you can see we have
supply zone removed supply zone removed supply zone removed right here as well so it's safe
to say you know that we are on a daily uptrend and the daily in this situation like i said is
our highest time frame so that's the first thing you need to know before looking for confirmation
i notice a lot of people don't even consider that when looking for confirmation that's probably the
most important factor so since your highest time frame is on an uptrend you can when price comes
down to this area of daily demand which you want to look for confirmation in it's okay to look for
here i'm going to write down our time frames again daily is your highest four hours intermediate
one hour is your entry time frame since your daily is on an uptrend it's okay to look for just one
hour confirmation because obviously you'll get the one hour confirmation sooner than the four
hour and that is only because your daily is on an uptrend if your daily is on a downtrend i will
explain later in the in this video what to do but since the daily is on an uptrend it's totally okay
to look for a one-hour confirmation in that daily demand and with that being said we'll hop down to
a smaller time frame now all right so now that we have identified that the daily is on an uptrend
and we've identified this nice daily demand zone that we want to look for confirmation in
it's now time to go down in the one hour which this is a one hour chart these are all one hour
uh candles and first things first i just want to say since the daily trend is up
you are technically allowed to take send forgets in this in this area so
technically that said forget right here would be totally valid um it is a little more risky
but the reward is much higher but you know since this is a confirmation video uh we're just going
to be talking about confirmation so i just wanted to point that out that technically this send
forget is is valid um so now i'm going to explain what to look for so let's just pretend that
all this stuff over here didn't happen right here uh just because it i can't draw it over here so
um i'm just basically gonna start from here and we're gonna go down right here this pretend
this is price action trending down down down down right and then we have supply zone here
supply zone here right so what you're going to want to look for is this is a one hour
time frame we have one hour supply here one hour supply here the best and let's just say we also
have a downward trend line like that excuse my drawing i know it's not the best at all
so what we're going to be looking for is basically the removal of supply zones we have one here
i don't want my drawings not going so we have one here and then one up here as well what we want to
see is at least two supply zones being removed so or a supply zone and this downward trend line
so something like this happens like this and we get a candle close above here and then we have
you know a new demand zone being formed right here that broke this trend line and that supply zone
that's a great zone uh in my opinion so then we would basically place our order here
with the stop loss under here and you wait for that pullback like that so that's just
one example where there's one supply removed but this downward trend line has been removed as well
that's one example um i'm going to show you guys a different another example as well so same idea let
me just get my tool so same idea we have this downtrend here we're trending down like this
let's just say that there's no trend line here just to make it simple
we have the supply zone we have a supplies on here let's just say there's no trend line
because sometimes they're not there isn't always a trend line um so we have two supply zones here
if price comes up and just removes the one supply zone opposing zone on the one hour
it's not that great and because like i said there's no downward trend line
uh so in this situation what you would want is for both of these zones to be removed and then
it would be more than likely that you would have you know a zone right here that was responsible
for moving this one you'd probably have another one under here as well but what i find is that
a lot of the times price does not make it all the way back to this bottom zone and you'll
see something like this happen so that's another very strong indication that buyers are stepping up
and this is the one so basically there's one example where you want the trend line removed
and one zone removed or if there's no trend line then you just want two zones removed and then
you want to find the demand zone uh in that situation that were that was responsible for
removing the zones and that would be your confirmation and if you don't know how to
find the zones and all that stuff i track all the zones check out this video i'm going to put it up
in the uh you'll see it right here that of uh tracking all the supply and demand zones it's
on my channel as well and it'll help you out with tracking these uh demand zones with that
being said we're gonna hop into the other example when your highest time frame is not on an uptrend
all right so this is an example where i see a lot of people making mistakes as you can
see price this is my highest time frame so my daily as you can see we have the trend line up
so price is in an uptrend like that um with demand zones obviously being respected supply zones being
removed and then we have right here we have our daily supply but in this example unlike the last
one you want to take a confirmation trade in this area but your higher time frame is counter trend
as you can see i wrote it right here your daily supply which you're contacting but there's a
daily uptrend so this equals counter trend so for this example to go and remember the three
time frames you have the daily the four and the one this is in the last example we were going
from a daily to the one hour because the daily was on an uptrend but in this example since your daily
is on an uptrend and you want to take a short in this area which i don't really recommend doing i
don't do this at all anymore but it still could be valid i just you know i don't i don't i'm not
a fan of it you would then have to go to your four hour your intermediate time frame for confirmation
and the mistake that i see is most people are just using their one hour because
that's what they've been taught i don't know who taught them that i have no idea
um so for this example you can look for one hour you can just go to your entry time frame but it's
just extremely risky and extremely aggressive it's not really wrong in my opinion it is kind of wrong
but some people will say it's not wrong but it's definitely safer to just go down to a four-hour
time frame since it's on an uptrend and if all this is making sense or if you have any
questions let me know in the comments down below i will respond to every single comment
uh just let me know and i will happily help you out so with that being said we've identified the
daily trend is up uh zones are being respected and then we've contacted this daily supply so now
let's dive into these smaller time frames all right so here we are on the four hour time
frame and as you can see i wrote right here daily supply which is this big area here daily uptrend
equals counter trend we must use intermediate time frame which in this example would be the four hour
in the daily four hour and one hour sequence if this was a four hour zone like this and your
intermediate was a one hour and then 15 minute was your entry you would have to go to the one hour
time frame it doesn't matter if this is weekly daily four hour you would go to your daily time
frame in this example it does not matter what the sequence is it just matters that you know you are
doing using the proper time frames when uh taking these confirmation setups so for this example
what you would look for it's the basically the exact same i'm just showing you guys
you have demand here in this example the demand is pretty far away from the zone
but what you could do is you could wait for this momentum shift to happen like
this and in this example would actually be pretty decent because what you could see
is price would come down here and you know if price comes up here then you're good you never
even took the trade right and that's the risk and that's the risk of taking seven forgets right
and by the way send forgets are not valid in this type of example where your trend is when
your highest time frame is trending so for this example since this trend line lines up
pretty nice with this demand it'd be almost a great example where price could break this
like that it would break this uh demand and this trend line would then be broken too it would then
create this supply zone right here i don't know if you can see that's green maybe i should use
a different color and then basically what you do is you'd wait for that pullback your stop would be
above this zone your entry would be here and then you would come down right here and then you'd be
well into profit and that's this would be your intermediate time frame confirmation obviously
all to for all this to play out it would take longer than the one hour but this is the safest
bet the highest odds in my opinion and the mistake i see is people are on the one hour trying to get
confirmation and they just get stopped out stopped out and then price eventually goes their way
so i hope that made sense so kind of to recap you have two types of confirmation you have
uh opposing zones let me just draw get my tool here you would have two zones
and then you'd want to see them both removed for confirmation or you have
your downtrend or your sorry your your trend line right here like this um
and let's just say there's one opposing zone right there and then you'd want to see
that broken where you have the removal of this this trend line and the removal of that
opposing zone and then you buy your pullback like that that's those are the two examples
and i mean that's pretty much all i have to say the biggest takeaway from this video i want it to
be is to make sure that you're using the proper um time frames to when looking for confirmation that
is the biggest factor and you know if you want to learn how to track supply and demand zones
subscribe to my channel check out the patreon 2 i track zones and trends and trend lines for
people it's pretty cheap it's only five dollars canadian a month to be a patreon member where
you get my charts i have a ton of videos on my channel as well that could help you out
if you're not sure how to track all the zones and make sure you're finding the proper zones
and yes and i hope this video helps let me like i said before let me know in the
comments down below if you have any questions at all i will respond to every single question
that i get and join the discord group it's free a bunch of supply and demand traders
in there and i hope this video helps if it did leave a thumbs up share with a friend
that wants to learn about confirmation trade and i hope you all have a good day cheers