In this subject I want to delve deeper into supply and demand and I will give some raw examples of how to combine supply and demand with support and resistance.
below we see a simple example of EURNZD on the 4h with all important levels of supply & demand you also learned this in the supply & demand course.
The supply & demand levels are based on the 50% imbalance candle where supply & demand is often the strongest and therefore a good indication to pull your levels of either supply & of demand. I also added a level support. the combination of S&R & S&D is really powerful why?
here we can see exactly where the fakeouts / springs / upthrust are and occur. I hereby refer to chapter DSW deep study wyckoff & supply & demand chapter fakeout in the course. it is a very powerful combination because most retail traders only see support & resistance lines and so immediately proceed to executing as soon as there is a ‘breakout’ here we as ”smart money traders like wyckoff / supply & demand traders”
want to unpack our advantage. we can determine exactly when we are talking about a valid break or a fakeout. a valid break as we all know only counts if there is a valid pullback and then in the everywhere trend.
otherwise the chance of a fakeout is much more likely. and so we wait for the price to break out and back bounce above support to then give another pullback and thus confirm the fakeout. also known as a spring / upthrust.
see example below.
The Bigger Picture it is very important to understand the larger picture, this is where things often go wrong because there is too much focus on the lower timeframes, take this as a lesson, learn to understand the higher timeframes.
I will give you an example of the daily below and you will agree that this is a possible correction move and then most likely go bullish again, so this is also what our analysis based on is the higher timeframes down to the lower timeframes, learn to respect and anticipate these higher timeframes and you will see that your win rate will increase considerably.