Hello my mentor
I have been following your supply and demand levels and wonder on the following.
How do u trade them, do u just execute a buy( sell) because price has entered a demand( supply) zone or is there a criteria to be followed e.g. pinbar/engulfing formations on lower time frames?
What is the difference between demand zone ( supply zone) and buy zone ( sell zone)?
Shou;d we take only first touches of the zones and ignored multiple touches of the zones. Most Demand & supply teacheers say we should only focus on “fresh touches: one touch”, is it the same with you?
Thanks my mentor, eagerly waitig for your responses.
Response:
In supply and demand zones trading, my go-to strategy typically melds price action entries with pending order entries. If a zone’s success seems questionable, I’ll be on the lookout for an engulfing candle forming on the 15-minute chart (if I’m monitoring a 1-hour zone) or on the 1-hour chart (if it’s a daily zone) before I dive in.
However, when a zone radiates a high success probability, I’d prefer to use a pending order placed at the zone’s peak or trough for trade entry.
To clarify, “buy zones” and “sell zones” are essentially supply and demand zones that have been tapped more than once.
Initially, I would just remind myself, “Okay, this supply has been touched twice.” But, I figured it’d be more beneficial to christen these frequently touched zones with specific names.
That way, my blog readers and those keeping tabs on my daily S + D levels can distinguish them from the rest.
Mind you, not all touched-and-retouched supply and demand zones qualify as “buy zones” or “sell zones”. Only zones where I speculate the banks are repeatedly taking profits or placing multiple trades to reverse the market get this label.
Now, about taking the first touch of a zone—well, it hinges on whether the zone is a supply/demand zone or a buy/sell zone. If it’s the former, yes, go for the first touch and avoid subsequent ones. But if it’s the latter, you can accommodate multiple touches from the zone before it starts losing its significance.
Hope this helps.
PAN.