supply and demand trading has become one
of the most popular methods of trading
most forex pairs today and from combing
through thousands upon thousands of your
comments it's the thing that you guys
want to see the most so in today's video
i'm gonna help you guys understand
supply and demand how to find it when to
enter and when to take profit
[Music]
welcome back to the channel everybody my
name's artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis i have
a feeling that this is gonna be a long
video so let's just get right into the
charts okay so the first thing you guys
have to understand when looking at
supply and demand
is the simple fact that retail day
traders cannot move the markets the
forex markets have a daily volume of 6.6
trillion dollars that 6.6 trillion
dollars is allocated probably to about
80 percent central banks across the
entire world moving money whether it's
from gbp to usd whether it's from euro
to jpy
they are making transactions depending
on the influx of currency that they get
to the currency that they would like to
get and they always want to get the best
price so they will hold out manipulating
the market to the point where they want
to get in on their big positions and
then get in and at that point that's
when you see the massive spikes in the
opposite direction again
daily volume of 6.6
trillion dollars the banks move the
market retail traders do not so the most
logical thing for you guys to do
is to trade like the banks so the first
thing that i want you guys to understand
when looking at the charts i have euro
usd right here it is one of the most
commonly traded 4x pairs and i want to
show you what it looks like when a swift
sharp move happens i'm not talking about
this i'm talking about
this
this v-shape is what you want to look
for these v-shapes only happen when
banks get into the market no amount of
retail day traders can make price move
like this ever so let's just say for
example you can't see any of this price
action right here you can only see this
one move if you look left you will see
right here this right here people like
to use as like the support zone right
and if it breaks below a support zone
people normally get in for a sell order
that looks like this smart people keep a
stop loss
dumb people however get liquidated they
don't have a stop loss so if the retail
trader gets into a short position right
here and it quickly reverses on them
they are stuck in that position until
the price pulls back to it and they can
get out at a break even or they get
margin called way up there so let's just
say they didn't have a stop loss and
waited for the price to come back to
that area so they can break even they
got into a sell position when a sell
position is closed it is a buy order so
their buy orders moved from their
original to break even meaning that
there are a ton of buy orders here for
the people that were stuck in the trade
buy orders living right here then there
are sell orders from the retail trader
just below that because it broke the
previous support so it must be going
down if you are a bank and you want to
buy a ton of something you have to look
for a ton of sellers not only that in
previous price action looking at this
area and people taking long positions
here trying to target this their stop
loss is going to be below that area that
we saw to the left right here so what is
a stop loss of a buy order that's right
more sell orders so not only are there
retail trader buy orders here there are
two massive chunks of retail trader sell
orders here which is completely primed
for the massive amount of liquidity that
the banks are going to put in their buy
orders and you see a massively sharp
straight up movement like a [ __ ]
retail traders cannot move the market
like this only big banks can maybe
retail can do something like this maybe
like a little
but not these colossal big ass candles
now i wanted to show you that example
specifically because it is just the
perfect cascading storm of sell orders
and buy orders at the right location
primed for banks victory but what you
also have to understand is that the
daily volume is 6.6
trillion dollars so what i want you guys
to focus on is the smaller moves because
banks still make smaller moves as well
as their massive moves like that think
about those supply and demand zones as
diving boards there are two different
types that banks will trade off of you
have the wide platform ones and you have
the narrow little flimsy dongle ones
that's depicted right here with a small
base and a sharp move then another one
right here with a single candle sharp
move again this is a very sharp move
this is more than a 45 degree angle
downwards so if your chart looks like
this when you get on and do your
analysis you should be drawing up a long
rectangular box across this zone and
then patiently waiting for the banks to
come back to that zone and use it as
their diving board to sell off the
market as the price comes back up to
that zone and we get this sharp one or
two candle rejection in the opposite
direction that right there is your short
position your stop loss is going to be
above the peak just barely just above
the peak of that maybe two or three pips
and your target is simply going to be
look left and where the most price has
crossed right there you're looking at 35
to 40 pips on these moves on a 30 minute
time frame these moves happen quickly
and it usually is in one direction the
entire time sometimes the price
continues and if you want to leave a
runner close 90 of your position but i
usually advocate that you just close 100
of your position at your take profit and
you look for your next trade and if you
guys are paying attention you're also
noticing right here this small base
consolidation area with a massively
sharp move off of it so when price
reaches that again and we get these
massive [ __ ] candles off of it you
can trade this zone again just a few
pips off of that up to where you think
the banks are gonna do their big
sell-off making money with the banks
whether the price is going up or whether
the price is going down again right here
single candle super sharp move off of it
banks push it back up massive drop down
40 pips within 30 minutes why does this
happen multiple times because when banks
have that much liquidity to move
they will do it in smaller chunks small
chunk one small chunk two that one was
actually massive and they will also
break it up into smaller chunks which is
why the small bases are important not
the long periods of consolidation
bless me thank you
but short bases where they fill in a
small chunk of their position another
small chunk and then they take the
market in the opposite direction please
don't ask me if this works for crypto we
are looking at the forex markets a 6.6
trillion dollar daily volume forex
market not crypto now here's the last
example that i'm going to show you this
is a long position banks get in a little
bit right there banks get in a little
bit more right there
and then the people that went long right
here with their stop losses right here
they take advantage of that so they're
sell orders right here meaning the buy
orders are primed ready to go banks get
in with the sharp movement pulls it up
gets enough people stuck and or
liquidated brings the price back down
into that zone for one last massive
rally off of that and the price shoots
up so either banks build up their
positions slowly rip the price up bring
it back down one more time and then let
it take off this is why current price
action is king banks are moving money
you either trade with the banks or
they're the ones that take your money
this is a constant battle between the
retail day trader and the banks so start
looking for the signals that the banks
are dropping for you the little
breadcrumbs pick up the scent of which
direction they're going to go in and go
with them if the price is moving against
you very very sharply please get the
[ __ ] out of your position you're getting
screwed over by the banks not screwed
over you fell for their trap admit your
mistake get out of your position prevent
yourself from having a massive loss also
keep in mind that those trades that have
the base the small base where there are
multiple positions that the banks got in
at that is a much stronger move than the
quick single candle one because right
there is where the traders are trapped
more trapped traders means a longer
bigger move off of it so if you guys
want to learn more about day trading and
all the different strategies that i
teach on this channel check out my
intermediate playlist right here and if
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here thanks so much for watching and
we'll see you in the next video