At Supply and Demand we have different types of patterns on how we can draw our Supply and Demand zones.
The best trade you can take with Supply and demand is when there is as little traffic as possible in the base.
The more traffic, the more risky the trade becomes.
So pay attention to this especially if you are just starting with Supply and Demand trading.
The trade also becomes more risky if very high and big wicks are already formed when forming the base.
This can often mean that testing the base could also break far to make a long wick.
Pay attention that you do not get in too early otherwise you might hit your stop loss.
3 tips to search the base
-significant drop or rally
-when the candle play in the base is not long – the base is still fresh.
The best base is a fresh base. This base type is still full of orders. This type of base can afford the price when it return. This type of base is usually translucent because the buy order comes beyond the order in the base. This is influenced by the base height factor.